African Remittance Startups Are Battling for Your Wallet
The competition for cross-border payments is growing very fast
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In the past, if you lived in the US or UK and wanted to send money back to your home country in Africa, you would likely go to a bank or Western Union.
But these days, the options for sending money back home are growing, and remittance startups are leading the charge.
Remittance in Africa
Remittance to Africa keeps growing. According to the data, Nigeria had the highest remittance inflows in 2023, with $20 billion.
Ghana was second ($4.7 billion), and Kenya third ($4.2 billion)
In 2024, Ghana eclipsed its previous record with $6.6 billion in remittance inflows.
Growing Competition
The competition in remittance is growing. And VCs are paying attention. Here’s a few examples of the competition and developing in the remittance space in Africa:
A startup called Accrue raised $1.5 million in February 2025.
Bamboo, the US stock investment app, launched a remittance product last year
Flutterwave’s SEND product has been making inroads in several stakes in the US
LemFi raised its Series B round with $53 million
YellowCard, a Crypto app which has been making a case for remittances in Africa through stablecoins, raised $33 million last year.
It’s not far fetched to say that remittance is a hot trend in fintech in Africa. But these African fintechs are not only focusing on Africa. They are looking at other markets as well.
Expansion into Asia and South America
In 2024, an African feather called Leatherback partnered with a bank in India to offer remittance payouts in Rupees. The company also expanded to Pakistan as well.
Just this year, LemFi continued its expansion into Europe by acquiring an Irish company. The South American market has also been on its radar when it expanded into Brazil and Mexico last year.
More and more African startups might start looking to add more cross border payments as the competition gets hotter.
Looking Ahead
The African Continental Free Trade Agreement (AfCTA) needs more work when it comes to payments across borders. Even though the Pan Africa Payment and Settlement Systems (PAPSS) has been ready since 2021, more effort might be need to encourage payment across borders. Fintech apps could help with that.
There has been conversations about mobile money being a major player for cross border transactions. MTN Nigeria secured licenses for both outbound and inbound transfers. MTN has also looked at South Africa for remittances.
Even international brands like Revolut has started their push into the African Market with its remittance product.
Stablecoins has been getting a lot of press lately and YellowCard could use that leverage to push for remittances across countries it currently operates in.
Right now, remittances are hot and we expect the conversations to continue. The competition will only get better. And that will always work in the favor of consumers.