Nigerian fintech Nomba has made a significant move into the North American market by acquiring a licensed Canadian payment service provider. This strategic acquisition, completed in the second quarter of 2025, is designed to build a robust cross-border payment infrastructure for African businesses. The initiative specifically targets business-to-business (B2B) trade flows, aiming to enhance efficiency and transparency in international commerce.
A Strategic Leap into North America
The acquisition provides Nomba with crucial regulatory coverage in Canada, enabling it to manage local money movement and directly link Canadian dollar (CAD) payment flows to African markets. To bolster this new venture, the company has invested approximately $2 million to strengthen the acquired entity's infrastructure and scale its operations. This move circumvents the slower, more complex correspondent banking networks traditionally used for such transactions.
According to CEO Yinka Adewale, existing cross-border payment systems were not built for the speed or transparency that modern businesses require. He explained that owning regulated infrastructure allows Nomba to eliminate layers of complexity and provide predictable, reliable rails for companies. This focus on B2B payments addresses a critical gap where fintech innovation has lagged behind consumer remittances.
Redefining Business-to-Business Payments
Through this new infrastructure, African businesses can now hold local CAD accounts within Canada and receive direct settlement from CAD into naira and other African currencies. This system facilitates near-real-time settlement for cross-border transactions, significantly reducing the reliance on intermediary banks. The streamlined process is tailored for exporters, importers, and professional services firms operating between the continents.
Nomba estimates that its direct payment rails can lower foreign exchange and transaction costs by as much as 40 to 60 percent. The platform demonstrated its capabilities by processing over $3 million in transactions during its initial phase in January 2026. This early success highlights the strong demand for more efficient and cost-effective B2B payment solutions.
An early beneficiary, a Nigerian oil and gas services company, has seen its payment settlement times drastically reduced. Previously, payments routed through correspondent banks took three to five business days to clear, requiring manual reconciliation. With Nomba's infrastructure, the firm now benefits from same-day settlement and immediate fund availability for its local operations.
A Global Vision Anchored in Africa
This Canadian expansion is strategically linked to Nomba's recent entry into the Democratic Republic of the Congo (DRC). By securing regulatory approval for international money transfers in the DRC, Nomba has established control points on both ends of a key trade corridor. This dual presence is set to streamline payments for businesses in the mineral-rich nation trading with Canadian firms.
Canada serves as the first step in Nomba's broader global strategy to support African trade with key international markets. The company is now setting its sights on further expansion, with plans to pursue direct licensing in the United Arab Emirates. Additionally, Nomba aims to establish bank sponsorship agreements in Singapore to open up the vital Asia-Africa trade corridor.
Nomba's acquisition in Canada marks a pivotal moment in its mission to build a global business banking infrastructure for African enterprises. By focusing on regulated, direct payment rails, the company is not just facilitating transactions but is empowering businesses to operate more competitively on the world stage. This strategic expansion signals a new era of financial connectivity between Africa and the rest of the world.
Source: Techpoint.africa