Fintechs rush for FX transactions will only benefit customers and startups with scale
- Nigerian fintechs are focusing on consumer-oriented cross-border transaction products due to the stability of dollar-based transactions.
- The Central Bank of Nigeria reported remittance inflows of $553 million in July 2024, marking a 130% increase from 2023.
- Startups need to increase Naira earnings by over 66% in 2024 to match 2023's dollar-equivalent revenue.
The current landscape for Nigerian fintechs in the cross-border transaction space is precarious, with a clear divide between larger firms that can absorb losses and smaller startups struggling to maintain profitability. The focus on niche markets and innovative solutions is essential for the survival of smaller players, but the overall market dynamics suggest a challenging future unless significant changes occur.
