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Tag: TerraPay

  • PayPal and TerraPay partner to enhance cross-border payments across Middle East, Africa

    PayPal and TerraPay partner to enhance cross-border payments across Middle East, Africa

    TerraPay, a leading global money transfer firm, and PayPal, a global digital payments and commerce platform, announced a strategic alliance on Tuesday that will allow PayPal users in the Middle East and Africa to send money in real time.

    Through the connection of banks, mobile wallets, and financial institutions, this cooperation seeks to promote economic growth by facilitating faster, easier, and more accessible cross-border transactions.

    Projection of MENA’S digital payments market

    The MENA digital payments market is projected to grow from $251.34 billion in 2025 to $422.56 billion by 2030, according to Mordor Intelligence.

    This alliance closes important gaps in financial connection and infrastructure readiness, allowing millions of people and organisations to participate more fully in the global economy in response to the growing demand for quick, safe, and effective payment solutions.

    TerraPay will act as an enabler, enabling bank and mobile wallet users in the Middle East and Africa to easily move money to their PayPal accounts through secure PayPal account linkage.

    “The Middle East and Africa are at the forefront of the digital transformation, yet financial barriers still limit growth for many,” said Otto Williams, Senior Vice President, Regional Head and General Manager, Middle East and Africa, at PayPal. “At PayPal, we’re committed to changing that.

    By partnering with TerraPay, we’re making it easier for businesses and individuals to make cross-border transactions, quickly, securely, and without friction. Together, we’re helping unlock economic opportunity and build a more connected, inclusive financial future for the Middle East and Africa region.”

    Benefits of the PayPal-TerraPay partnership for customers 

    Through this partnership, customers will benefit from increased accessibility. PayPal allows for safe account linkage and easy money transfers between bank accounts and mobile wallets.

    Increased financial connectivity, enabling millions of consumers to easily conduct business abroad.

    Increased financial inclusion, which makes it possible for people and companies to engage in the global digital economy more successfully.

    “Our mission at TerraPay is to create a world where digital transactions are effortless, secure, and accessible to all,” said Ani Sane, Co-Founder and Chief Business Officer at TerraPay.

    “This partnership with PayPal marks a major milestone in expanding financial access across the Middle East and Africa, where our strong global infrastructure helps overcome the limitations of traditional banking. With built-in interoperability, TerraPay connects various financial systems, from banks to mobile wallets, making it easier for businesses to scale and users to transact seamlessly on a global scale. Together, we are driving a new era of digital payments.”

    PayPal and TerraPay are dedicated to providing cutting-edge, safe, and practical financial solutions that enable people and businesses to prosper in a world that is becoming more interconnected, even as the demand for cross-border payments keeps rising throughout the region.

  • TerraPay acquires $95 million debt to finance low-cost remittance transactions across Africa

    TerraPay acquires $95 million debt to finance low-cost remittance transactions across Africa

    Africa-focused digital payments company TerraPay acquired $95 million from the International Finance Corporation (IFC) and the British International Investment (BII) to make it easier for people to send money back home at low cost and to help businesses and people’s lives across Africa.

    Unveiling TerraPay’s Investor Lineup: IFC, ILX, and BII

    TerraPay will receive a $20 million senior secured loan from BII, the UK’s development finance institution, and a $75 million financing package from IFC, including a $30 million loan from its account, a $15 million B Loan from asset manager ILX under IFC’s B Loan Programme, and a $30 million parallel loan from OP Finnfund Global Impact Fund I and BIO.

    Read also: Access Bank and British Council join forces for BROCLA 2024

    With the money, TerraPay will be able to grow its business by teaming up with more global money transfer companies and handling more payments across Africa. As a result of the expansion, foreign money transfers will be cheaper, faster, and easier to do.

    “Our relationship with IFC is longstanding, and their support is invaluable as we grow. This has driven our purpose, allowing us to develop our infrastructure, extend our network, and invest heavily in technology and solutions that tackle real-world problems, said TerraPay founder and CEO Ambar Sur. As we strengthen our cooperation, I look forward to enabling families, individuals, and businesses across Africa with our enormous global payments network to improve financial inclusion and accessibility.

    In 2019, as part of TerraPay’s Series A funding round, IFC put $8 million into the company. TerraPay and Enza have partnered to change Africa’s payments environment to boost financial inclusion. Enza executive director Andrew Key said the alliance “will transform the experience of businesses across Africa, bringing many of them into the formal financial ecosystem for the first time.”

    TerraPay allows 41-country transfers and 40-country receipts. African customers can transfer money inside Africa and to Europe and Asia. TerraPay supports households, small enterprises, and economic development by connecting critical markets with money transfer operators like Western Union, MoneyGram, and Ria.

    “At IFC, we are committed to creating inclusive growth in Africa, including by leveraging digital solutions to bridge financial gaps and improve livelihoods,” said Aliou Maiga, IFC’s Regional Industry Director for the Financial Institutions Group for Africa. We want to empower individuals and small companies with a robust digital payment infrastructure through our relationship.

    TerraPay’s Working Capital for Remittance Growth

    TerraPay’s operating capital will pre-fund expanding African remittance volumes with BII’s finance. It will emphasise the high volume of African corridors in Kenya, Ghana, Egypt, Uganda, Tanzania, Cameroon, Mali, Benin, Côte d’Ivoire, Senegal, and Mozambique.

    Using Lendable’s senior secured facility, BII is leveraging the partner’s fintech debt investing expertise in Africa and investment monitoring.

    Sending money to Africa is costly. Our commitment to TerraPay is crucial to increasing low-cost, efficient, accessible, and trustworthy remittances. Our goal is to encourage resilient financing and boost economic possibilities across the continent, said BII Managing Director and Head of Africa Chris Chijiutomi.

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    However, BII, the UK’s DFI and impact investor, announced a $20 million senior secured loan to TerraPay, a worldwide cross-border payments processor focused on African remittances.

    Sub-Saharan Africa has the highest remittance costs. In 2022, mailing $200 to the region cost 8%, while the global average was 6.2%. The World Bank says this exceeds the Sustainable Development Goal target of 3%.

    TerraPay seamlessly links Western Union and digital-only fintechs like Wise to Africa’s top mobile money operators, including M-Pesa, MTN Mobile Money, and Airtel Mobile Money. Its tech-enabled concept allows real-time, lower-cost digital money transfers, addressing the high transfer costs and slow settlement for the African diaspora sending money home.

    Lendable’s Managing Director and Head of Fintech, Suresh Samuel, said, “We have been supporting TerraPay since 2020, as the company accelerated its growth facilitating remittances across emerging markets.” He added, “We continue to believe in the importance of increasing digital payments globally and are excited to work with BII to further support Terra.

  • DTB Uganda, TerraPay to enhance cross-border transfer processes

    DTB Uganda, TerraPay to enhance cross-border transfer processes

    Diamond Trust Bank Uganda and TerraPay have joined forces to revolutionise cross-border transfer processes in 2024. 

    This partnership marks a significant step forward in facilitating seamless financial transactions across borders, benefiting customers with faster, more convenient, and secure remittance services. Let’s delve deeper into this collaboration and its potential impact.

    Enhanced Cross-Border Transfer Processes

    Diamond Trust Bank Uganda’s collaboration with TerraPay brings forth a myriad of benefits for individuals and businesses engaged in cross-border transactions. By leveraging TerraPay’s innovative platform, customers can expect:

    The partnership aims to streamline the cross-border transfer process, reducing transaction times significantly. With TerraPay’s cutting-edge technology and Diamond Trust Bank Uganda’s extensive network, remittances can be processed swiftly, ensuring that funds reach recipients promptly.

    Read also: TerraPay ,KCB to improve cross-border remittances

    Accessibility is key in modern banking, and this partnership prioritizes making cross-border transactions convenient for customers. Through TerraPay’s user-friendly interface and Diamond Trust Bank Uganda’s seamless integration, individuals can initiate and track transactions conveniently from their preferred devices, whether it’s a smartphone, tablet, or computer.

    Cost-effective solutions are paramount, especially for individuals who regularly send money across borders. Diamond Trust Bank Uganda and TerraPay strive to offer competitive exchange rates and minimal fees, ensuring that customers get the most value out of their transactions. By optimizing operational costs and leveraging technological efficiencies, this partnership aims to provide affordable remittance services.

    The collaboration between Diamond Trust Bank Uganda and TerraPay holds the potential to drive financial inclusion and spur economic development in Uganda and beyond. By facilitating smoother cross-border transactions, particularly for underserved communities, this partnership contributes to expanding access to financial services. Individuals in remote areas or those lacking access to traditional banking infrastructure can now leverage digital channels to send and receive money securely, fostering greater financial inclusion.

    Also, Remittances play a crucial role in driving economic growth, as they provide vital financial support to families and contribute to local economies. By enhancing the efficiency and affordability of cross-border transfers, Diamond Trust Bank Uganda and TerraPay empower individuals to send more funds to their loved ones, invest in education, healthcare, and entrepreneurial ventures, thereby stimulating economic activity and improving livelihoods.

    TerraPay partners with M-PESA to facilitate cross-border remittances

    The partnership between Diamond Trust Bank Uganda and TerraPay underscores the importance of collaboration and innovation in the financial services sector. By harnessing each other’s strengths and leveraging technology, both entities can deliver superior services to customers, setting a precedent for future collaborations and inspiring other players in the industry to explore innovative solutions for enhancing cross-border transactions.

    In conclusion, the partnership between Diamond Trust Bank Uganda and TerraPay represents a significant milestone in the realm of cross-border transfers. With a focus on efficiency, convenience, and affordability, this collaboration aims to redefine the way individuals and businesses conduct international remittances. Moreover, by promoting financial inclusion and driving economic development, the partnership has the potential to create lasting positive impacts on communities and economies. As technology continues to evolve and financial services become increasingly digital, initiatives like this serve as catalysts for progress, paving the way for a more connected and inclusive global financial landscape.

  • TerraPay partners with M-PESA to facilitate cross-border remittances

    TerraPay partners with M-PESA to facilitate cross-border remittances

    TerraPay, a global payments infrastructure firm, has formed a partnership with Safaricom, Kenyan telecommunications, information technology, and financial services provider. By working together, the two firms will expand access to financial services by lowering barriers to cross-border payments.

    Through TerraPay’s group company Mobex (Kenya), a licenced Money Remittance Provider, over 30 million M-PESA mobile wallet-holders in Kenya will be able to send instantaneous payments to wallets in Bangladesh and Pakistan, with plans to expand to India and Nepal in the coming months.

    M-PESA Global transactions increased in volume by 2.2% and in value by 5.6% year over year in the six months ending in March 2023, reflecting the growth of cross-border agreements. Since the Central Bank of Kenya began promoting mobile money transfers, their use in Kenya has increased. Both organizations have teamed up forces to promote financial empowerment and independence while fostering a more accessible payment ecosystem.

    Read also: Two Chinese fintechs dominate Nigeria POS market

    Users can embrace digital payments seamlessly 

    “We believe this breakthrough collaboration with Safaricom will spur a world of new possibilities for mobile financial service operators to directly scale globally and provide customers with a choice to send payments in a secure, transparent, and swift manner,” said Ambar Sur, Founder & CEO of TerraPay. 

    “Our partnership with Safaricom will further boost our capabilities in providing an inclusive global financial ecosystem powered by our agile payments infrastructure and empower Safaricom customers with fast & affordable borderless payment options and access to TerraPay’s widespread partner network of 7.5Bn+ bank accounts and 2.1Bn+ mobile wallets.”

    Chief Executive Officer of Safaricom Peter Ndegwa made the following statement about the new partnership: “We are thrilled to partner with TerraPay as it comes at a time where a growing number of customers are embracing digital payments to send money to their loved ones.” TerraPay’s interoperable technology platform will enable our customers to execute secured & low-cost payments across key regions, further encouraging the adoption of digital payments in the region. We look forward to a successful collaboration.”

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    About TerraPay

    TerraPay, with headquarters in the United Kingdom, is founded on the principle that even the smallest payment merits a secure, borderless international voyage. The organization has been working to establish a global payments highway that gives companies the tools they need to provide their customers with transparent transactions that are safe, quick, and easy to do no matter where they are in the world.

    TerraPay is one of the top worldwide partners of banks, mobile wallets, money transfer operators, merchants, and financial institutions, having been registered and regulated in 27 global countries. This helps to create a more extensive and inclusive international financial ecosystem. Through TerraPay’s broad network of 7.5 billion bank accounts and 2.1 billion mobile wallets in 112 receive countries and 208 send countries, its partners may serve as an inspiration for the future of universal financial access.

  • TerraPay Mauritius secures $30 million in new funding

    TerraPay Mauritius secures $30 million in new funding

    TerraPay, a financial technology business based in the United Kingdom that specializes in payment infrastructure, was successful in obtaining one hundred million Dollars thanks to the leadership of the International Finance Corporation (IFC). 

    As a result of this achievement, the International Finance Corporation (IFC) has declared its intention to provide the Mauritius branch of TerraPay with a working capital loan in the amount of $30 million. 

    The loan will have a term of four years, with a grace period of two years, and it will be supplemented by a syndicated loan from the IFC and its partners in the amount of $60 million. 

    The majority of the funds from the loan will be used to improve TerraPay Mauritius’s working capital. TerraPay Mauritius is the local subsidiary of TerraPay Holdings Limited. According to the information provided by the IFC, the loan will also serve to provide a blueprint for future fundraising initiatives.

    Read also: Egyptian Camel Venture opens $16 million fintech fund to support startups

    What the Project Entails

    This project is anticipated to facilitate access to international fund transfers and cross-border payments. The International Finance Corporation (IFC) is an institution that is a member of the World Bank Group.

    In addition to this, it will facilitate the expansion of TerraPay Mauritius, a company that focuses on the processing of international remittances as well as cross-border business payments.

    The International Finance Corporation (IFC) issued a statement in which it indicated that the loan facility would assist TerraPay Mauritius in raising the working capital it requires. This will further support the activities of TerraPay Mauritius, which include facilitating international remittances and cross-border commercial payments.

    The IFC Board of Directors has not yet decided whether or not to give its blessing to the initiative, although it is anticipated that they will do so in the near future. TerraPay Mauritius plans to improve its financial capabilities with the help of the International Finance Corporation (IFC), which will ultimately result in increased access to and more effective choices for making cross-border payments.

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    About TerraPay

    The idea behind the creation of TerraPay, a mobile-first worldwide payment network, was to make it possible to transmit money to any mobile device. TerraPay is a technology that unites different suppliers of financial services, such as mobile wallet service providers, money transfer operators, banks, and payment platforms, to create “one network” for the safe and smooth flow of cash across international borders. 

    The network makes it possible to carry out a diverse range of transactions, including as money transfers between individuals, online payments, and payments made by the government. 

    TerraPay is not tied to any specific platform and supports a variety of open APIs, allowing it to be integrated with virtually any mobile wallet service. Partners are granted access to a worldwide payment network with a single link, which enables service upscaling while simultaneously minimizing both operational and capital expenditures. 

    TerraPay is a fully regulated financial intermediary services network that provides services beyond its primary core transaction, routing, and processing capabilities. Additionally, TerraPay accepts complete responsibility for regulatory compliance, foreign exchange management, and fund settlement from beginning to end.

  • TerraPay ,KCB to improve cross-border remittances

    TerraPay ,KCB to improve cross-border remittances

    KCB customers in Kenya now have the opportunity to receive funds seamlessly from the diaspora into their Kenyan accounts thanks to a partnership with Mobex, an affiliate of TerraPay Group, a digital payments infrastructure and solutions provider headquartered in the UK.

    KCB Bank, with the integration of TerraPay, intends to enhance its position as a significant player in the global payments ecosystem by providing its customers with easy, competitive, and faster services that leverage the rising demand for digital channels.

    The Bank has taken the lead in promoting and increasing financial inclusion through partnerships with fintech institutions to develop into a preeminent global processor of remittances and payments across the globe.

    Read also: Globacom launches MoneyMaster, a Payment Service Bank

    Executives comment on the partnership

    Speaking on the partnership, Mrs Annastacia Kimtai, Director of Retail Banking at KCB Bank, said, “We are reiterating our commitment to using technology and strategic partnerships to ensure that our customers will continue to take pleasure in the liberties provided by modern banking. We are harnessing fintech skills to establish links and strategic alliances with like-minded partners to ensure that our consumers have access to world-class remittance services.”

    Ambar Sur, TerraPay’s Founder and CEO, said, “This is an exciting moment for cross-border payments. Through our new partnership with KCB Bank, we can make fast, safe, and reliable payments across Africa and Asia, removing the obstacles to international money transfers.”

    Remittance inflow progress in Kenya

    According to the Central Bank of Kenya, remittance inflows to the country increased by 10 per cent, from US$2,796 million in 2019 to US$3,095 million in 2020, accounting for three per cent of the country’s Gross Domestic Product (GDP). This is contrary to projections in 2020 that predicted remittances in low and middle-income countries would likely decrease due to the pandemic. In September 2021, it increased from $ 3.5 billion (Kshs. 427 billion)  to $ 4 billion (Kshs (Kshs. 484Bn) in September, 2022.

    Despite widespread limits on movement and lockdowns during the COVID-19 pandemic, remittance flows to Kenya have increased due to financial advances that have provided more convenient channels, such as utilizing mobile phones for transactions.

    Although the widespread adoption of technology and the integration of mobile phone financial services has decreased the cost of transactions from 15% to 8% over the past decade (Kenya ranks third in sub-Saharan Africa), more work needs to be done to reach Sustainable Development Goals (SDG) recommended target of 3%.

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    About KCB Bank Kenya Ltd

    KCB Bank Kenya Limited is the most prominent financial institution in Kenya. With over 200 branches, 367 automated teller machines, and 16,000 agents, the bank, part of KCB Group Plc, has the most extensive branch network in East Africa. The Bank also offers customers 24-hour access to a contact centre and mobile and online banking services. 

    KCB Group Plc also has a presence in Uganda, Tanzania, South Sudan, Burundi, and Rwanda, and a representative office in Ethiopia also boasts of a vast network of correspondent relationships totalling over 200 banks across the globe, and our customers are assured of seamless facilitation of their international trade requirements wherever they are.

    About TerraPay

    TerraPay is a worldwide partner to banks, mobile wallets, money transfer operators, merchants, and financial institutions, facilitating a more extensive and inclusive international financial ecosystem with its regulation and approval in 26 global countries. With access to a payments infrastructure that spans the globe, their partners become beacons of the promise of global financial inclusion.

    The group operates on the principle that even the most minor transaction is entitled to the same secure, borderless treatment as the biggest. The organisation has been working to develop a global payments highway that provides a direct, secure, and instantaneous transit for all financial transactions, no matter how large or location.