Initially, users could only send money to Nigeria, Ghana, and Kenya at affordable rates on the Lemonade Finance platform.
The new expansion gives users more alternatives to make transactions across the other African countries.
Founded in 2020 by Ridwan Olalere and Rina Cochran, the Y Combinator-backed fintech is registered with the Financial Conduct Authority and provides users with accounts in their country of residence and country of origin for personal and business banking needs.
The finance company is licensed in Canada as a money service business and has necessary license coverage in the US, UK, and Europe to enable Nigerians to send money to bank accounts in those countries.
The platform allows users to switch between currencies benefiting thousands of users across North America and Europe.
The company’s expansion unlocks the doors to a greater share of the African market for Lemonade Finance, stimulating the start-up’s drive to build the biggest neobank for African immigrants.
Afeez Gbotosho, Lemonade’s head of products, said the addition of Senegal, Côte d’Ivoire, Benin Republic, Cameroon, Tanzania, Uganda, and Rwanda was data-driven. These six countries have nationals abroad who often need to send money back home.
There is a need for policymakers to make sure remittance service providers do not face difficulties in partnering with correspondent banks.
Opening access of money transfer operators (MTOs) to partnerships with national post offices, national banks, and telecommunications companies could help remove entry barriers and increase competition in remittance markets.