Sylvia Duruson
Sendsprint, a rising player in the cross-border payments industry, has made a significant move by acquiring Nobel Financial Inc., a US-based remittance company. This strategic purchase allows Sendsprint to extend its services to 16 US states, enabling money transfers and gift-sending capabilities for customers in these regions.
The UK-based startup, which currently operates in Ghana, Kenya, South Africa, and Nigeria, sees immense potential in the US market. Damisi Busari, CEO and founder of Sendsprint, expressed enthusiasm about bringing their unique blend of technology solutions and understanding of African customers to the US.
As part of the deal, Scott McClain, Nobel Financial Inc.’s Chief Compliance Officer, will join Sendsprint’s team in the same capacity. This move brings valuable expertise to the expanding company.
Sendsprint, launched in 2022, operates in a competitive remittance market alongside established giants like Western Union and MoneyGram, as well as newer entrants such as LemFi and Leatherback. The company distinguishes itself by charging a flat $5 fee for all transactions.
One of Sendsprint’s key features is its partnerships with over 3,000 retailers across Africa. This network includes well-known names like Shoprite, Dapper Monkey, Jumia, and Cake City. These collaborations allow users to send gift cards to recipients in African countries.
Nobel Financial Inc., founded in 2014, brings its own strengths to the table. The company offers international remittance services from the USA to more than 32 countries across Africa, Latin America, Asia, and the Middle East. Additionally, Nobel Financial Inc. provides users with the option to send in-kind gifts, such as bags of rice, to recipients in Africa.
This acquisition comes at a time of significant growth in remittance flows to Africa. 2022 saw remittances to the continent reach an impressive $100 billion, surpassing both Official Development Assistance (ODA) and Foreign Direct Investment (FDI). This upward trend is driven by increasing migration and improved financial stability among Africans living in the diaspora.
The remittance market plays a crucial role in supporting families and economies across Africa. As more Africans seek opportunities abroad, the demand for efficient, cost-effective money transfer services continues to grow. Companies like Sendsprint aim to meet this need by leveraging technology and strategic partnerships.
The acquisition of Nobel Financial Inc. positions Sendsprint to capture a larger share of the US-to-Africa remittance corridor. By combining their technological prowess with Nobel’s established presence in the US market, Sendsprint aims to offer improved services to customers on both sides of the Atlantic.
As the remittance landscape evolves, companies that can offer innovative solutions and competitive pricing are likely to thrive. Sendsprint’s flat fee model and gift-sending options demonstrate its commitment to meeting customer needs in creative ways.
The integration of Nobel Financial Inc. into Sendsprint’s operations will likely involve combining their technologies, customer bases, and regulatory compliance frameworks. This process may take time but could result in a stronger, more competitive entity in the long run.
For customers in the US and Africa, this acquisition may lead to expanded options for sending money and gifts across borders. As competition in the remittance market intensifies, consumers may benefit from improved services and potentially lower fees.
The remittance industry’s growth reflects broader trends in global migration and economic interconnectedness. As more people move across borders for work and education, the need for reliable, affordable money transfer services becomes increasingly vital.
