Fincra Revolutionizes Cross-Border Payments, Achieves Over $10 Billion in Transactions
Fincra, a B2B startup that powers payment infrastructure for remittance firms, is set to commence operations in South Africa within the next month. The company, which currently operates across Ghana, Kenya, Uganda, the United Kingdom, Europe, and North America, has secured a Third Party Payment Provider (TPPP) licence in South Africa, allowing it to offer Pay-In and Pay-Out services.
Founded by Ayodele, Fincra's vision extends beyond South Africa's borders. Ayodele aims to operate Fincra in all 54 African countries, with plans to expand into regions like Egypt and Ethiopia next year. This ambitious expansion is driven by Ayodele's belief that more cross-border solutions are essential to facilitate the seamless movement of money within Africa.
Navigating diverse and often stringent regulations across multiple countries is a significant obstacle to progress in building a cross-border payment rail, according to Ayodele. However, he argues that the hard things stand the test of time and that these challenges are worth overcoming.
One area where Fincra has decided to deprioritise is the issuance of virtual cards. This decision aligns with a broader industry shift and is a response to the Central Bank of Nigeria's introduction of the Investors' & Exporters' FX Window (I&E FX Window). Ayodele believes that the current workaround employed by Nigerian fintechs, where non-U.S. residents are issued cards, is fundamentally flawed and will eventually hit a fraud threshold.
Instead, Fincra is preparing to introduce multi-currency accounts designed specifically for small businesses. While the company has no plans to launch a consumer-facing product, this move underscores its commitment to serving the African business community.
Ayodele emphasises the importance of ecosystem collaboration and raising user awareness as key measures to combat fraud effectively. He argues that partnering with U.S. or UK banks to issue dollar cards to Africans is unsustainable due to increased fraud risks.
Fincra has served clients like Lemfi, OneLiquidity, and Cleva, demonstrating its ability to provide reliable and efficient payment solutions. Since 2023, the company has processed over $10 billion in transactions, a testament to its growing influence in the African financial landscape.
Despite remaining largely bootstrapped, having secured only a modest $120,000 investment from Techstars in 2020, Fincra's expansion plans are not slowing down. With South Africa on the horizon, the future looks bright for this innovative payment solutions provider. However, the specific countries Fincra plans to start activities in next month remain undisclosed.
