Visa’s recent investment in Nigeria’s Moniepoint aligns with the company’s expansion into immigrant banking, featuring the launch of MonieWorld aimed at supporting diaspora financial needs.

Moniepoint Expands Horizon with MonieWorld Initiative

Visa’s investment earlier this year in Moniepoint, a Nigerian fintech recognized for establishing one of Africa’s largest business banking platforms, marks a significant step forward for the startup. This strategic partnership hints at exciting opportunities, particularly with plans to integrate Visa Direct into its services, which aims to facilitate international payments, making cross-border remittances more accessible.

The Launch of MonieWorld: A New Era for Immigrant Banking

Moniepoint has initiated the rollout of MonieWorld, beginning with a focus on the UK–Nigeria corridor. This new service, according to founder and CEO Tosin Eniolorunda, transcends traditional remittance applications. “We’re not trying to be a remittance app,” he stated in an interview with TechCrunch. “We’re building a proper immigrant banking platform.”

This strategy enters a highly competitive market, particularly in the remittance space that currently enjoys robust demand between the UK and Nigeria. Existing players such as LemFi, Send, NALA, Zepz, and Taptap Send have set high standards with their intuitive interfaces and competitive pricing strategies, which presents an additional layer of challenge for MonieWorld as it seeks to establish its foothold.

Navigating a Crowded Marketplace

Selecting a remittance application is often one of the first financial decisions made by newcomers to a country, frequently based on recommendations from peers. As MonieWorld enters the fray, it must overcome the hurdles posed by established competitors that have already secured customer loyalty.

Despite skepticism regarding the need for another remittance option, Eniolorunda is confident that MonieWorld will address the unique needs of new immigrants who seek to maintain connections with their families while adapting to new surroundings. The fintech emphasizes its commitment to not merely compete on pricing but also to leverage its existing technological framework to deliver superior services.

Value Addition Beyond Remittances

Eniolorunda emphasizes Moniepoint’s broader ambitions, which extend beyond remittances to include offerings that facilitate credit-building for immigrants. Past successes in the U.S. showcase platforms like Zolve that have effectively used credit services as a pivotal entry point into the financial ecosystem for newcomers. “When you settle into a new country, you need to build a credit history,” Eniolorunda noted. Recognizing this need can significantly differentiate MonieWorld from its competition.

Market Potential

In 2023, remittances from the UK surpassed £9.3 billion, with Nigerians abroad sending over $20 billion home, according to World Bank statistics. Such figures indicate a considerable opportunity for growth within this marketplace. Eniolorunda asserts that despite fierce competition, a few companies will emerge victorious by not only providing competitive pricing but also enhancing the overall customer experience.

As Moniepoint continues to solidify its operations across various African nations, including Kenya, the next phase involves expanding MonieWorld into markets with significant diaspora populations in countries like the US and Canada. This strategic growth is expected to mitigate the risks associated with a heavy reliance on the Nigerian market, a strategy that has proven attractive to investors.

A Competitive Challenge Ahead

Moniepoint’s entry into the remittance sector is not without its obstacles, as it faces an intensely competitive landscape with diminished margins. Eniolorunda recognizes the potential for industry consolidation ahead, but he remains optimistic that Moniepoint’s robust infrastructure, regulatory expertise, and cultural insights will provide the necessary competitive edge. Reflecting on Moniepoint’s late entry into agency banking back in 2019, he remarked, “When we started Moniepoint, it felt like we were entering late. The market grew, and look where we are now.”

MonieWorld aims to reshape how immigrants handle financial transactions and build their financial futures while adapting to new lives in foreign lands. With an appealing mix of solid infrastructure and user-centric services, the fintech is poised to make an impactful entry.