Cross-border payment solution provider, LemFi, has commenced operations in Kenya banking on its competitive pricing model to capture the diaspora remittances service market.
Speaking during the launch, LemFi Country Manager Kakea Mbacha said the financial technology firm is targeting to revolutionize international money transfer market with innovative solutions at zero fees.
The firm is targeting to rope in more than 500,000 Kenyans living in United States, United Kingdom and Canada to its platform before expanding operations into other key source markets for Kenya’s remittance inflows.
“We are bringing in the market the zero transaction fees. None of our competitors in the market provide that. Also the instant payment in 2-3 minutes is very key to us. So that gives us an upper advantage,” said Kakea Mbacha, LemFi Country Manager.
According to 2021 Diapora Remittances Survey by the Central Bank of Kenya (CBK), mobile money operators handle the largest share of inflows at 32pc, followed by money transfer companies at 31, banks 22pc, while those who personally carry their remittances when travelling and those who use friends and relatives account for 6 and 4pc respectively.
Using LemiFi app, customers will be able to register their accounts from where they will be able to send funds directly into bank and mobile money accounts at no charges.
Additionally, the app also supports the use of multiple currencies through various wallets that customers can open and deposit money in different accounts.
Mbacha says LemFi app also provides for a Kenya shillings wallet setup which customers can open and fund their accounts via mobile money with the platform also offering competitive foreign exchange platform for US dollar, sterling pound and Canadian dollar.
“Every time the rate changes on our platform, you get a notification. That is actually the fastest way to actually notify you about the exchange rate,” added Mbacha.
The fintech currently has operations in Kenya, Nigeria and Ghana with plans to introduce remittance services in South Africa.
For last mile transactions, LemFi has partnered with Nairobi-based Pesa Swap, a local online and mobile payment solutions with operations in the UK to provide locally relevant and alternative payment methods for global, regional and local merchants.
“We need to empower our people to access money transfer services at affordable rates so that they can keep the cash flowing back home,” added Chris Munyasya, Pesa Swap Chief Executive Officer.
Latest data from CBK indicate that total inflows in April 2023 stood at Ksh 44 billion with inflows from US and Canada amounting to Ksh 25.9 billion, Europe 7.4 billion and the rest of the world Ksh 10.9 billion.
The cumulative inflows for the 12 months to April totalled Ksh 549.9 billion up 0.4pc from Ksh 547.6 billion netted over the same period in 2022.