Nigerian neobank Kuda Technologies has re-entered the cross-border remittance space with the launch of a new multi-currency wallet, allowing users outside Nigeria to send money directly to Nigerian bank accounts.
The announcement was made at a media parley where top executives, including CEO Babs Ogundeyi and SVP Nosakhare Oyegun, revealed that the first remittance attempt was shelved due to challenges with intermediaries and profitability. Now fully developed in-house, the revamped system is embedded in Kuda’s app, targeting users in the UK and EU for now, with U.S. and Canadian currencies to be added soon.
Kuda’s decision is backed by data showing that many Nigerian users continue to use the app even after relocating abroad. The new wallet is unavailable to Nigerians at home due to microfinance bank regulations barring foreign transactions.
The revamped system aims to offer a smoother remittance experience by eliminating the need for users to juggle multiple apps. Oyegun emphasised that Kuda’s value lies in simplifying this process into one platform, making remittances faster and more convenient for the diaspora community.
This relaunch comes as Nigeria’s personal remittance market rebounded in 2024, growing by 8.9% to reach $20.9 billion, buoyed by a 43.5% surge in inflows via International Money Transfer Operators. Kuda now joins an increasingly competitive field, with startups like Lemfi, Nala, and Moniepoint challenging legacy providers such as Western Union. Still, Kuda is betting on its user-friendly platform and extensive transaction ecosystem to carve out a solid share of the market.
In Q1 2025, Kuda processed over 300 million transactions valued at ₦14.3 trillion ($9.3 billion), with retail banking contributing ₦8.5 trillion and the newer business arm adding ₦5.8 trillion. The neobank also issued ₦16.4 billion ($10.7 million) in overdrafts, a 43% increase from the previous quarter.
Though Kuda absorbs some credit losses, its risk-based lending model and volume-driven approach keep net margins between 3% and 7%. If the current trajectory continues, Kuda could close 2025 with ₦57.2 trillion in transaction volume, surpassing its five-year cumulative total.