Remittance startups focusing on Africa are everywhere. Well-known names such as Lemfi, NALA, Raenest, and Grey dominate the space. However, behind their success lies the essential infrastructure provided by lesser-known companies that power cross-border transactions.
One of these key players is Fincra, a B2B company offering payment solutions to enable remittance firms to process international transfers seamlessly. Since its founding, Fincra has handled over $10 billion in transactions, supporting companies like Lemfi, OneLiquidity, and Cleva. Although the company is profitable, it has opted to keep its financial details private.
Having raised just a $120,000 investment from Techstars in 2020, Ayodele—Fincra’s founder—has always believed in organic growth, prioritizing value creation over heavy reliance on external funding.
“I see growth as a result of value. Provide enough value, and the funds will follow,” says Ayodele.
As African businesses expand globally and a growing number of Africans engage in remote work for international companies, Fincra is positioning itself as a leader in solving the complexities of cross-border payments. While competitors like Kora and Verto also serve this space, Fincra differentiates itself by simplifying the intricacies of international transactions with its unique payment infrastructure.
Beyond international transfers, Fincra offers an API designed to assist Nigerian companies in collecting local payments via bank or card transfers. Clients such as Jiji and BetKing rely on Fincra’s technology for their local payment needs.
Rather than viewing other companies as competitors, Fincra sees them as potential collaborators, adopting a mindset that focuses on empowering businesses with its infrastructure.
“Instead of competing, we focus on providing value to others, which can lead to mutually beneficial partnerships,” says Ayodele.
Building a cross-border payments platform from scratch has been an enormous challenge. One of the biggest hurdles is navigating the complex regulatory landscape across various countries, along with the need for skilled talent to develop such intricate systems.
“Sometimes, it takes up to 48 hours to transfer local currency from one bank to another in certain regions. You can’t innovate around that,” Ayodele explains.
He believes there is a significant need for more solutions to ease the movement of money within Africa.
“We believe Africa’s prosperity will thrive on efficient financial exchanges, and for that, we need many more companies like ours working on solving cross-border payment issues,” he adds.
Currently, Fincra operates in Ghana, Kenya, Uganda, the UK, Europe, and North America, with plans to expand into the Francophone regions of Africa.
“The demand from our clients is clear—we must expand into these regions. Our goal is to cover all 54 African countries, starting with Egypt and Ethiopia next year,” says Ayodele.
However, Fincra has faced its own challenges, including security concerns related to the rising incidents of fraud in Nigeria’s financial sector.
“The only way to combat fraud is by continuously improving our technology,” says Ayodele. “We are all learning, and without the right measures in place, vulnerabilities will be exposed.”
In response to these challenges, Ayodele emphasizes the importance of collaboration within the ecosystem and raising awareness among users as key strategies to combat fraud.
Fincra has moved away from offering virtual cards, a decision reflecting a broader trend within the industry. Ayodele argues that the current method of collaborating with U.S. and UK banks to issue dollar cards to Africans presents significant fraud risks as the number of non-U.S. residents receiving such cards increases.
“The issue with virtual cards is that once one fintech offers it, others try to replicate it. It’s only a matter of time before fraud becomes a bigger issue,” he warns.
The solution, according to Ayodele, lies in issuing cards through local entities, ensuring the integrity of the process.
“There’s no easy way around this. The hard paths are often the ones that lead to sustainable solutions,” he states.
The business also refrained from issuing dollar cards following the introduction of the Investors’ & Exporters’ FX Window by the Central Bank of Nigeria (CBN).
“There’s no point in solving a problem that has already been addressed. Ideally, Nigerian banks should be able to offer naira cards for international transactions, but laziness is preventing this from happening,” he explains.
Fincra’s focus remains on providing infrastructure to support businesses rather than competing for direct consumer attention. The company is also planning to roll out multi-currency accounts designed specifically for small businesses.
“We believe we can achieve our vision faster by focusing on building the backbone for other businesses rather than trying to serve every customer directly,” Ayodele says.
In a significant move, Fincra obtained a Third Party Payment Provider (TPPP) license in South Africa in October 2024, which will allow it to offer Pay-In and Pay-Out services to businesses in the country. Fincra plans to begin operations in South Africa next month.
