Frontier Fintech GPS# 39 - July 9th 2025
Nigerian banks resume international card transactions, LemFi expands to Egypt, Stanbic launches a US$ 100m fund and other stories that matter.
Illustration by Mary Mogoi
Hi All, Welcome to the 39th edition of Frontier Fintech GPS where I provide key insights on the top global Fintech news items that matter to you. This newsletter will be arriving in your inboxes every Wednesday morning. The idea behind Frontier Fintech GPS is to help you navigate the endless stream of Fintech news and get smart about global Fintech as it applies to Africa. To those who are yet to subscribe, hit the subscribe button below and share with your colleagues and friends. 🚀
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🇳🇬 | Nigerian Banks resume international use of naira debit cards
Several Nigerian banks, including United Bank for Africa (UBA) and Wema Bank, have reinstated international transactions on naira debit cards after a three-year suspension due to foreign exchange shortages. The move allows customers to use naira cards for global online payments, POS, and ATM transactions, with varying spending limits, such as GTBank’s $1,000 quarterly cap. This reflects improved foreign exchange liquidity, driven by Central Bank of Nigeria (CBN) reforms, increased diaspora remittances, and a stabilized naira at around ₦1,528 per dollar. The change enhances convenience for consumers and businesses, reducing reliance on virtual dollar cards and boosting participation in global trade. However, spending limits and eligibility criteria remain inconsistent across banks.
This move has been a long-time coming. The CBN has done a lot of work to normalise Nigeria’s FX environment after a topsy-turvy period where the Naira faced a lot of depreciation in the face of significant dollar shortages. It seems that FX flows have normalised given that banks typically have to cover demand from their key corporates and their own net positions before they can start serving such retail use cases. In my view, this is one of the biggest signs of FX normalisation. Having said that, the biggest impact will be on businesses that have built virtual card propositions. Whilst these Fintechs tend to be more cost effective, a decent size of the market will stick to their trusted banks. It should also matter to global companies that collect from Nigeria because this should slightly reduce the friction.
🇪🇬 | LemFi expands international payment services to Egypt
LemFi, a London-based fintech startup, has expanded its low-cost, reliable international payment services to Egypt, targeting the country’s significant diaspora community. The move taps into Egypt’s $29.6 billion remittance market, which nearly doubled in 2024 and accounted for 6.11% of GDP in 2023. The expansion strengthens LemFi’s presence in North Africa, alongside services for Moroccan and Tunisian diasporas. Supported by $53 million in Series B funding secured in January 2025, LemFi aims to provide efficient, cost-effective remittance solutions. This aligns with Egypt’s growing digital payment adoption and economic reforms boosting confidence in the formal financial sector. The strategic move enhances financial connectivity for Egyptian diaspora and supports regional economic growth.
LemFi continues to build out a truly Pan-African business now adding Egypt to their global system. Egypt is one of Africa’s largest remittance markets though from a profile of payments perspective, it has more GCC inflows than countries like Ghana, Nigeria or Kenya. Nonetheless, the key point behind this is that LemFi has shown the value of building a global business from day one particularly in products such as remittances which are global by nature.
🇰🇪 | Stanbic Bank Kenya to Raise $100 Million for Startup Fund
Stanbic Bank Kenya announced plans to raise $100 million for its Catalytic Fund to support startups and SMEs across East Africa. The initiative will target businesses in sectors that typically struggle to secure financing, such as agritech, healthtech, and the creative economy. This move is significant as it marks a commercial bank's entry into the venture capital space, traditionally occupied by VCs and development finance institutions. The strategic implication is a potential new model for commercial banks to engage with and de-risk early-stage ventures through patient capital, expanding their client base beyond established corporations. As of December 2024, the fund had already disbursed KES 182.4 million ($1.4 million).
This is an interesting bit of news. Corporate Venture in my view has a space to play in the market particularly if the parent corporation can leverage its infrastructure to accelerate specific outcomes. For instance, supporting a Fintech and enabling that Fintech to access low cost payment rails or credit. Nonetheless, there’s a reason why the success rate is so low, specifically in Africa. You have to get a lot right from managerial incentives to parent corporate incentives all the way to how you scout deals. If not well managed, it becomes an avenue for patronage and insider deals. The proof will be in the pudding.
🇿🇦 | South Africans Embrace Digital Payments Over Cash and Cards
A report by Stitch indicates a significant shift in consumer payment preferences in South Africa. The "State of Consumer Payment in South Africa" report, based on a survey of 2,000 individuals, shows a rapid adoption of digital payment methods, including digital wallets and direct bank payments like Capitec Pay. This trend is driven by consumer demand for faster, more secure, and convenient transactions. Consequently, merchants are integrating these new payment solutions. While this shift benefits many, it poses a risk of exclusion for rural communities, the elderly, and those without reliable internet access. Businesses are encouraged to adopt omnichannel payment systems to remain competitive.
Stitch always does a great job in these annual consumer reports. Some highlights that stood out for me were;
The number of surveyed customers who do their grocery shopping online shot up from 71% in 2023 to 95% now;
For clothing and apparel, this was even more pronounced, moving from 60% two years ago to 97% now;
Overall, the number of retail transactions that happen online shifted from 6 to 10% in a two year period;
Pay by Bank and Capitec Pay accounted for 45% and 42% respectively of new payment methods tried out this year;
Fraud, security and data privacy concerns rank highly as the biggest barriers to digital payments adoption;
🇬🇭🇹🇭 | CBDC Pilot Projects See Adoption in Ghana and Thailand
A recent survey by Giesecke and Devrient (G+D) and OMFIF, involving 34 central banks, highlights progress in Central Bank Digital Currency (CBDC) implementation. The report indicates that CBDCs are being developed to transfer the benefits of cash to the digital realm, offering a public payment alternative to existing commercial options. Key motivators for adoption include financial inclusion, offline payment capabilities, and preserving monetary sovereignty. Pilot projects by the Bank of Ghana and the Bank of Thailand have shown successful adoption, particularly in rural areas and with offline functionality. Challenges to widespread adoption include gaining political approval, aligning regulations, and ensuring security. The report suggests a significant number of central banks anticipate issuing a CBDC within the next three to five years.
What I found interesting about this study is that CBDCs in the Ghanaian trial saw a 60% adoption rate with people depositing all their cash in exchange for the CBDC. The biggest reason for this was cost and security. In this Ghanaian study, they enabled a CBDC card that could function off-line. Whilst the eNaira was a flop, I’ve always found that CBDCs have a role to play particularly in last mile payments. This is because affordability plays a big role in adoption of digital payments at this level and Central Banks need to find a way to create new inclusive digital payment systems. This report is definitely worth reading. I think Central Banks need to clearly communicate to the market the role of CBDCs - in my view they’re digital cash for excluded people and not a replacement to existing digital payments.
🌍 | MiniPay and Noah Debut Global-to-Local Stablecoin Payments
MiniPay, a non-custodial stablecoin wallet, has partnered with global payments infrastructure provider Noah to connect global banking rails with local payment methods. This collaboration allows MiniPay users to create virtual USD and EUR accounts to receive payments via ACH and SEPA, which are then automatically converted to stablecoins like USDT, USDC, or cUSD in their wallet. The initiative is designed to simplify cross-border transactions for freelancers and migrant workers, particularly in Africa and Latin America. By integrating with local payment systems such as M-Pesa, the service enables users to spend their stablecoin balances directly, bypassing the high fees and friction of traditional international payment systems. This provides a more efficient way to earn globally and spend locally without relying on third-party exchanges.
Interestingly I was speaking to a friend in the Fintech space about this potential use case. We were discussing how a MiniPay could enable low cost international transfers riding on stablecoin infrastructure. It’s definitely a story to keep track of because stablecoins are only as valuable as their underlying distribution. The game is to make them work without customers knowing that they’re using stablecoins. I see a role for MiniPay in global P2P payments and remittances.
🇰🇪🇿🇦 | Flutterwave Reduces Staff in Kenya and South Africa
Flutterwave has reduced its workforce by 50% in its Kenyan and South African operations as part of a cost-cutting initiative aimed at achieving profitability ahead of a potential initial public offering (IPO). This move follows a previous layoff of 3% of its staff less than a year ago. The staff reductions have primarily affected the compliance, legal, and human resources departments. The company is reportedly rehiring for similar roles in Nigeria, its largest market. This restructuring occurs as Flutterwave seeks a Payment Service Provider (PSP) license in both Kenya and South Africa. The company stated the changes are part of a performance and strategy-led review to ensure operational efficiency and focus on sustainable growth.
These two markets have not been particularly fruitful for Flutterwave. In South Africa, the PSP market is well advanced and in Kenya, Flutterwave has struggled with some reputational baggage. It makes sense for them to wind down their teams in these markets particularly as I’m sure the focus is on building a sustainable business that could eventually go public. The challenge must be that it’s very difficult to make their economics match their past valuations particularly as VCs may lack the patience required. GB and his team nonetheless are smart enough to chart a path that could work for everyone involved.
🇳🇬 | Zenith Bank in talks to acquire a tier-two lender in Kenya
Zenith Bank of Nigeria is in strategic talks to acquire a tier-two lender in the Kenyan market, marking its first entry into East Africa. The move follows other Nigerian banks, such as United Bank for Africa (UBA), Guaranty Trust Bank (GTBank), and Access Bank, which have also entered the Kenyan market. This expansion is driven by a regulatory shift in Kenya, where the Central Bank of Kenya (CBK) has increased the minimum core capital requirement for banks. This has put pressure on smaller banks to either raise new funds or consider mergers and acquisitions. Zenith Bank recently raised approximately $228 million, boosting its capital base and positioning it for this Pan-African growth strategy. The acquisition is expected to be finalized within the next three months.
I spoke to Zenith’s team some years back about this, probably back in 2022. It just goes to show how long some of these deals take particularly as there are so many moving parts. However, it makes sense now. Nigerian banks have been forced to raise capital and just like in the mid 2000s, some of this capital will lead to M&A activity. Moreover, the Kenyan Central Bank is finally opening up to new banks and so the timing is right. Traditionally, Nigerian Banks have struggled in East Africa and my view has been that the dynamics are just different. Kenya in particular requires nimble operators who can adjust to the ebb and flow of the market. Most Nigerian banks stick to group policies around customer segmentation and credit requirements which simply don’t cut it in Kenya. I’ve always felt that more decision making power should be given to subsidiaries with the group narrowing the scope of what it controls.
🇰🇪 | Luno Re-Enters Kenyan Crypto Market
Luno, a UK-based cryptocurrency company, has re-launched its services in Kenya after exiting in 2014 due to a Central Bank circular that restricted banks from working with crypto enterprises. The company's return is timed with the development of a new Virtual Asset Service Providers (VASP) Bill, which is expected to create a formal licensing framework under the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA). Luno aims to attract users seeking alternatives to peer-to-peer (P2P) platforms by offering a more compliant and stable service. To navigate the current lack of direct banking integration, Luno will introduce voucher payments for depositing and withdrawing funds. The company will also absorb a proposed 10% excise duty on commissions, a move it considers sustainable despite reducing profit margins.
Kenya is opening up towards crypto and last week we spoke about the progress being made in the VASP bill. It’s only a matter of time before it becomes law and it makes sense to start pitching camp. Luno has built a rock solid reputation in their home market of South Africa and has since expanded globally. The space is heating up but Luno should carve a niche particularly amongst higher income people. Key to success will be in market education because I know that this is a challenging area for the broader crypto ecosystem. Most people hear crypto and the first thing they think about is “scam”.
🇳🇬 | Kuda Launches Remittance Wallet for Diaspora Users
Kuda Technologies, a Nigerian fintech, has launched a multicurrency wallet for its diaspora customers. The new feature allows users to send pounds and euros to Nigeria. The move is intended to retain customers who are relocating abroad. This positions Kuda to compete with other remittance players like Lemfi and Moniepoint. The company's Nigerian operations were profitable in Q1 2025, generating over ₦6 billion. Kuda plans to add U.S. and Canadian dollars to the service later and will continue to raise capital to fund its global expansion.
Kuda is joining Moniepoint and targeting remittances. I argued that a potential driver for this move is growing “risk-free” revenues which are valued better than interest revenues because they don’t grow proportionately with balance sheet risk. As liquidity improves in the market, the margin environment will likely be compressed particularly as competition grows. Moreover, the argument that “we want to retain customers who are relocating abroad” assumes that those customers will continue using Kuda which may not always be the case. Having said that, it does make sense to get into remittances - the question is whether you have the right to win.