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NALA, a prominent fintech company, has obtained a money remittance license in Uganda, a significant step that opens up new opportunities for Ugandans living abroad to access the company’s services, which are offered without fees.
Nicolai Eddy, NALA’s Chief Operations Officer (COO), emphasized the impact of this licensing, particularly for Ugandans in the diaspora. “If you need that money immediately, you will be able to receive it instantly and without any deductions through our payment plan product,” Eddy stated.
He highlighted that NALA’s approach to money remittances is focused on high transaction volumes. “While we might not profit from smaller transactions, larger remittances allow us to generate enough revenue to sustain the business,” he added.
NALA’s Global Reach
Founded in 2017 by Benjamin Fernandes, NALA facilitates money transfers from the UK, US, and EU to several African countries, including Tanzania, Kenya, Egypt, Uganda, Ghana, Rwanda, Cameroon, Côte d’Ivoire, Senegal, Nigeria, and South Africa.
Eddy pointed out that a substantial portion of remittances sent through NALA is used for essential needs such as education, healthcare, and household expenses. While the remittance process has seen improvements, he acknowledged that there is still more to be done to fully support the needs of recipients.
He also mentioned that NALA has collaborated closely with the Bank of Uganda to meet all regulatory requirements, ensuring that remittances are accessible and secure. Eddy noted that this license would also contribute to increasing the supply of foreign exchange in Uganda, which is vital for the country’s economic growth.
Flutterwave’s Entry into the Ugandan Market
In a related development, Flutterwave, another leading fintech, was granted a Payment Systems Operator (PSO) license by the Bank of Uganda on August 28, 2024. This license enables businesses in Uganda to leverage Flutterwave’s payment solutions, further expanding the digital payment landscape in the country.
Growing Digital Remittances Market in Uganda
The entry of fintech companies like NALA and Flutterwave into Uganda underscores the growing interest in the country’s digital remittances market. The market is projected to reach $17.99 million in transaction value by the end of 2024. Moreover, it is expected to grow at an annual rate of 8.35% from 2024 to 2028, potentially reaching $24.79 million by 2028.
These developments highlight the increasing role of digital remittances in Uganda’s financial ecosystem, offering greater convenience and support for both senders and recipients across the globe.
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