Start US to Nigeria Remittance with Machnet
Nigeria is located in West Africa and is known for its diverse culture, abundant resources, and vibrant economy. It is the most populous country in Africa, with over 200 million people and a GDP of 440.8 USD billion USD 2021.
State of Remittance in Nigeria
Nigeria is one of Africa's largest recipients of remittance, with an estimated $20 billion received in 2021, which is four times more than the value of their FDI. The remittance business is so massive that it accounts for nearly 4% of the country's GDP. As of 2020, there were an estimated 360,000 Nigerian immigrants living in the United States. In fact, Nigeria is one of the top countries of origin for African immigrants in the United States.
A significant portion of these remittances comes from the United States. It is an important source of income for many Nigerian households. The diaspora is also actively investing in the country's healthcare, agriculture, education, Information and Communication Technology, housing and real estate, oil and gas, among others.
Although Nigeria is the largest market for inbound remittance, sending money from the US remains invariably expensive. High transaction costs, volatile Niara, and limited access to financial services remain challenging for many Nigerians receiving remittances. The Nigerian government encourages the use of digital channels for remittance transactions, which is expected to lower transaction costs and enhance financial inclusion.
Nigerian Fintech Startups in Remittance
It also helps that Nigeria is home to one of the most vibrant fintech ecosystems, with a growing number of fintech startups providing innovative financial services. These services not only help improve the efficiency of the US to Nigeria remittance market but also bridge the gap between the banked and underbanked.
Some of the notable fintech startups in Nigeria include:
Flutterwave: Flutterwave is a Nigerian fintech company that offers various payment solutions, including remittance services. It partners with various money transfer operators to enable Nigerians living in the US to send money to their families back home.
Paga: Paga is a Nigerian mobile payment platform that allows users to send and receive money, pay bills, and access other financial services. It partners with various money transfer operators to offer remittance services to Nigerians in the US.
Interswitch: Interswitch is a Nigerian payment processing company that provides a range of payment solutions, including remittance services. It partners with various money transfer operators to enable Nigerians in the US to send money to Nigeria.
Some fintech companies are also leveraging blockchain technology to provide cheaper, faster, and more secure remittance services to Nigerians living in the US and other countries.
Some local homegrown companies to look forward to :
- AnyMoney: AnyMoney provides an affordable, secure, and friendly platform that facilitates financial services in remittances, collections, and disbursements in Nigeria. Apart from sending remittances to friends and family, they also facilitate payment collection for business payments such as e-commerce and app developers.
- Metal Finance: Metal finance is a remittance as well as an investment platform for the Nigerian diaspora in the US. With simply a phone number, users can set up their accounts and start sending money back home.
- OnePurse: Onepurse facilitates diaspora transactions to Nigeria at attractive exchange rates. They focus on peer-to-peer payments and provide excellent services using standard industry practices.
- PingMoney: PingMoney is a simple and easy-to-use money transfer and bill payment app specializing in mobile payments and mobile money platforms.
While international money transfer operators such as Worldremit, Remitly, and TransferWise still hold the largest share of the market, homegrown companies hold their niche strength with diaspora-centric services and hyper-local service.
Start US to Nigeria Remittance with Machnet
The US-Nigeria corridor is the biggest remittance market in Africa. Inevitably there are many players, but there are still many challenges to remitting money to Nigeria. Users must be able to compare prices and services and choose one that suits their needs.
The largest population of Nigerians lives in Texas, followed by California, New York, Maryland, and Georgia. Machnet's RaaS (Remittance-as-a-Service) program allows you to collect payments from these and all other US states and send payments to Nigeria. The program is built to overcome the complexities of entering the US market. Beneficiaries, on the other end, can receive payments in their bank accounts, cards, or cash payments.
Our built-in compliance and tech infrastructure make it easy for startups and growing companies looking to enter this market with minimized costs and as fast as possible. Get in touch with our team to learn more.