In Q2 2024, the average cost of sending remittances to Sub-Saharan Africa was 8.37%, the highest regional average recorded by the World Bank. Cross-border transfers have also historically involved multiple intermediaries and settlement delays before money reaches its recipient.
Over the past decade, fintechs have tried to close some of those gaps, especially for migrants who regularly send money between their country of residence and home. Pesa, a Nigerian cross-border payments fintech, is among the companies building around this problem. Now, the company is taking its consumer money-transfer business to Australia.
Founded in 2021 by Tolu Osho, Yusuf Yakubu, and Adewale Afolabi as PesaPeer, the company started as a digital remittance business focused on helping people move money across borders, and rebranded to Pesa in 2023.
Pesa has launched its Australia corridor, allowing customers to send Australian dollars to Nigeria and other African countries, the Philippines, India, Europe, the United Kingdom, the United States, and Canada through its app. The company says the expansion will enable dual-directional money transfers between Australia and Nigeria. Pesa says it offers its Australian service under authorisation from the Australian Transaction Reports and Analysis Centre (AUSTRAC).
Originally published by TechCabal.