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Fidelity Bank Plc has teamed up with Mastercard to introduce a new initiative aimed at improving cross-border payments and remittances in Nigeria.
In a statement released on Friday, Fidelity Bank announced the launch of “Fidelity Send,” a new product leveraging Mastercard’s extensive global network. This service is designed to facilitate near-real-time, cost-effective outbound transactions, ultimately driving financial inclusion in the country.
Cross-border remittances continue to be a vital part of Africa’s economy. In 2023, remittance flows to Sub-Saharan Africa increased by approximately 1.9% to $54 billion, with Nigeria accounting for 38% of these flows. Looking ahead to 2024, remittance flows to the region are projected to grow by 2.5%, creating significant opportunities for businesses to expand their services and tap into the burgeoning market for cross-border financial transactions.
However, the adoption of cross-border payments has been hampered by challenges such as limited banking infrastructure, high fees, and long processing times. The collaboration between Fidelity Bank and Mastercard seeks to address these challenges by offering a faster, more reliable, and cost-effective solution. The new service promises lower fees, no landing fees, a variety of management options, and guaranteed funds delivery, aligning with the evolving needs of customers.
Osita Ede, Divisional Head of Product Development at Fidelity Bank, commented on the partnership, stating, “Our collaboration with Mastercard to introduce Fidelity Send demonstrates our commitment to meeting our customers’ business and lifestyle needs through carefully designed products and services. We are pleased to offer our valued customers a quick and seamless means of receiving or transferring funds globally via a range of service touchpoints.”
Ede further highlighted that Fidelity International Transfer was specifically designed to bridge the gap in cross-border payments, providing Fidelity Bank’s growing customer base with an enhanced banking experience. “This solution also addresses the key challenge of managing foreign currency fluctuations during international money transfers,” he added.
Folasade Femi-Lawal, Country Manager for West Africa at Mastercard, expressed her enthusiasm for the partnership, saying, “We are honoured to collaborate with Fidelity Bank to introduce innovative solutions that offer greater choice, security, and flexibility to individuals and businesses in Nigeria. Through advancements in payment technology, we aim to empower people and enhance financial inclusion for millions in underserved communities.”
She continued, “In recent years, Mastercard has intensified its efforts to facilitate better access to cross-border payments in Nigeria and across the continent, in line with our commitment to bringing one billion individuals into the digital economy by 2025. This collaboration with Fidelity Bank strengthens this initiative and enables both parties to connect and power an inclusive digital economy that benefits everyone, everywhere.”
The partnership between Fidelity Bank and Mastercard represents a significant step forward in providing Nigerians with more accessible and efficient cross-border payment solutions, further supporting financial inclusion and economic growth in the region.
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