Kuda, the African fintech company behind the popular money app, has secured a Payment Service Provider (PSP) license from the Bank of Tanzania (BoT), positioning itself to provide inbound remittance services to Tanzanians.
This new development aims to lower the cost of remittances, which currently stand at an average of 6.35% per transaction, enabling the Tanzanian diaspora in the UK, EU, US, and Canada to send money back home more easily and affordably.
With the PSP license, Kuda is set to offer a wide range of payment solutions, making it easier for Tanzanians to receive both personal and business payments from abroad.
Access to multiple payment methods
In addition to remittance services, Kuda’s customers in Tanzania will now have access to various payment methods, including cards, mobile money, bank transfers, USSD, and EFT.
- The company also plans to introduce merchant services, allowing Tanzanian businesses to securely accept payments, further boosting financial inclusion.
- The Tanzanian diaspora plays a crucial role in the country's economy, frequently sending money to support family members, invest in businesses, and contribute to local communities.
- In 2021 alone, remittances to Tanzania reached $569.3 million, according to the Bank of Tanzania, highlighting the importance of cross-border payments.
Babs Ogundeyi, Group CEO of Kuda Technologies, hailed the license acquisition as a major milestone in Kuda's expansion strategy across Africa.
"Obtaining the PSP license in Tanzania is a landmark achievement for Kuda as we continue expanding our footprint across Africa. Tanzania is a critical market for us, and this license enables us to provide innovative and cost-effective solutions for cross-border payments.
“We are committed to empowering the Tanzanian diaspora and supporting economic growth in the region by delivering secure, seamless remittance services that foster greater financial inclusion,” he said.
Kuda’s entry into the Tanzanian market is set to strengthen the fintech company's mission to make financial services more accessible, affordable, and rewarding for Africans, fostering deeper connections between the Tanzanian diaspora and the growing local economy.
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