SendSprint:the remittance startup, based in the UK but operating in the US and Nigeria, launched today with a unique selling point: a flat $5 for all transfers.
The fintech will target 300,000 of the UK’s 1.7 million Africans in the first 18 months and expand from there to the US and Canada. It enters a remittance market dominated by industry veterans Western Union and MoneyGram and relatively new fintechs such as Zepz (formerly WorldRemit), Remitly and Wise.
However, it’s its comprehensive value proposition for all transactions that may give it an edge over competitors, all of whom have a sliding scale that often increases dramatically with the payment method the sender chooses, reaching upwards of $10 per send. $200 from select vendors.
With three initial destination countries – Kenya, Nigeria and South Africa – SendSprint has partnered with Africa’s highest-valued startup, Flutterwave, which already supports cross-border transfers to 34 of the continent’s 54 countries. The partnership will help SendSprint quickly comply with regulations in its countries of operation.
“The UK launch is a significant step for SendSprint as we look to expand and connect people around the world to their homes in Africa. We have ambitious growth targets that will support our team in both product and customer service scale,” said SendSprint founder and CEO Damisi Bousari in a statement shared with TechCrunch.
Ms Busari, the former CEO of Flutterwave, says she founded SendSprint to connect the African diaspora “with people back home by enabling fast, simple and hassle-free international transfers”.
Its product goes a step further to introduce a gift card service, Sprint Connect, which partners with more than 3,000 retailers in recipient countries, including Africa’s largest supermarket chain Shoprite, e-commerce Jumia, hospitals and pharmacies.
The gift service was driven by research into how remittances to Africa are commonly used. According to the World Bank, sub-Saharan Africa received $49 billion in personal remittances last year. The majority of remittances, more than 75%, are used for household needs by purchasing food, medicine and school fees.
“We understand the connection people have with their home countries and the importance of sending money and gifts home to support loved ones… Our service recognizes and reflects that,” said Busari.
“We are ambitious in our growth targets and are targeting 10% market share in each of the markets we enter.”
Flutterwave, which provides the infrastructure to process SendSprint’s payments, described the early-stage launch as timely.