Kuda, the Nigerian money app, has entered the UK as part of a global expansion drive to meet the cross-border transfer demands of Nigerians living in the UK.
According to a statement from Kuda, this decision was inspired by statistics indicating that over £3 billion ($3.4 billion) is sent from the UK to Nigeria each year and that the new fixed-fee system has the potential to save Nigerians living in the UK millions of pounds.
Following its launch in the United Kingdom, the firm would charge a flat cost of £3 per transfer up to a maximum of £10,000. Kuda contrasts this to the average remittance charge of 8%. Kuda stated
Remittance companies like Kuda assist Africans living and working abroad transfer money back to their family worldwide. As such, they are essential components of the global cross-border payments ecosystem.
Babs Ogundeyi, CEO and Co-founder, Kuda: ”Africans in the UK are faced with barrier after barrier when it comes to financial services, from challenges setting up accounts to prohibitive and inconsistent fees on meaningful transfers. They are forced to limit each transfer to a few hundred pounds to avoid losing money or face escalating exchange rates with bigger transfers. Technology means the world is getting smaller but the incredible transformation in financial services hasn’t been inclusive. Kuda is changing that – initially for Nigerians, then all Africans in the UK and across the globe.”
Kuda will be available in the UK on iOS, Android, and as a web app. The company said it plans to expand the remittance service to other African countries and increase the range of features UK users can access in the near future.