Three years after shelving its initial cross-border remittance efforts, Nigerian digital bank Kuda Technologies has reentered the market with a revamped multi-currency wallet. This new product allows Kuda users outside Nigeria to send money directly to Nigerian bank accounts through the Kuda app. The move marks a strategic return to remittances, now backed by a more integrated, in-house solution.
Learning from Early Missteps
Kuda’s first attempt at cross-border remittances was hampered by dependency on intermediaries and operational inefficiencies. The company has since redesigned the system within its infrastructure, allowing for improved margins and a more seamless user experience. “The first time, we did not quite get it right, but now we have figured it out,” said Nosakhare Oyegun, Senior VP for Business Banking.
Focused on Nigerians Abroad
The relaunch is specifically targeted at Nigerians living abroad who continue to use Kuda’s app for local transactions or during visits home. Many had been using multiple apps to transfer money back to Nigeria, often at high fees and with poor user experience. Kuda aims to simplify that process with its wallet, currently supporting British pounds and euros, with plans to add USD and CAD within six months.
Navigating Regulatory Boundaries
Due to regulatory restrictions, the new remittance service is unavailable to users based in Nigeria, as microfinance banks are barred from processing foreign transactions. By focusing on its growing international user base, Kuda is tapping into a promising segment with strong remittance needs. The company sees this relaunch not only as a service upgrade but as a long-term growth lever for its ecosystem.
Rising Remittance Trends in Nigeria
Kuda’s timing is aligned with a broader rebound in Nigeria’s remittance market. In 2024, personal remittances rose by 8.9% to $20.9 billion, driven by a 43.5% surge in inflows through international money transfer operators. With new foreign exchange policies and rising competition from fintechs like Lemfi, Nala, and Moniepoint, Kuda is entering a hotly contested but lucrative space.
A Unified Experience for Users
Kuda’s competitive edge lies in its all-in-one app approach, consolidating multiple financial services in a single platform. “It’s frustrating to have to jump between three or four apps just to make one transaction,” said Oyegun. The fintech is betting that this integrated experience will attract more users who prioritize simplicity and speed in money transfers.
Strong Q1 Performance Underscores Momentum
Kuda's renewed product focus follows a strong first quarter in 2025, during which it processed over 300 million transactions worth $9.3 billion. Retail banking accounted for the bulk at $5.5 billion, while business banking, launched only in 2022, contributed $3.7 billion, or 40% of the total value. The strong performance underscores the success of its dual focus on retail and business users.
Credit Services Fuel Additional Growth
Kuda also saw impressive growth in its credit products, issuing $10.7 million in overdrafts in Q1 alone, marking a 43% increase from the previous quarter. Despite some losses, the fintech maintains a positive net margin between 3% and 7%, thanks to its risk-based pricing strategy. Rather than open loan applications, Kuda offers credit based on user activity, aiming to democratize access while managing risk.
With a rebuilt remittance engine, a growing international user base, and strong financial performance, Kuda appears poised for a breakout year. If its current momentum continues, the neobank could process over $37.2 billion by the end of 2025—more than its first five years combined. This relaunch not only marks a return to remittances but signals Kuda’s broader ambition to become Africa’s leading digital banking platform.