A UK-based startup, SendSprint , has launched today with a unique selling point. Their new feature includes a $5 flat fee for all transfers. The startup also has operations in the US and Nigeria.
In the first 18 months, the fintech will focus on 300,000 of the 1.7 million Africans living in the UK, expanding from there to the United States and Canada. It is coming up to face a competitive remittance market dominated by established players like Western Union and MoneyGram and more recent fintech startups like Zepz (formerly WorldRemit), Remitly, and Wise.
However, its flat-fee value offer for all transactions could give it an advantage over rivals who all operate on a sliding scale, which frequently rises sharply depending on the form of payment chosen by the sender and can go as high as $10 to send $200 by some vendors.
SendSprint is working with Africa's most valuable company, Flutterwave, which allows cross-border transfers to 34 of the continent's 54 countries, with three initial destination countries: Kenya, Nigeria, and South Africa. SendSprint will be able to promptly abide by laws in the nations where it conducts business thanks to the cooperation.
The CEO of the budding startup, Damisi Busari, has said in an interview with a tech news portal that the UK launch has been a massive step for SendSprint. The company aims to expand and connect with Africans from around the world to their home continent of Africa. He also added that the company has some ambitious growth plans, which will be supported by adding new members to the team. These additions will be made by scaling up customer service and product management.
In the interview, Ms Busari, a former Flutterwave executive, said the startup was founded to connect the African diaspora across the globe. The motto for the firm is to connect loved ones at home with a simple, hassle-free and fast international transfer system. In the interview, she also stated that her startup understands and prioritizes the importance of staying connected with one's loved ones at home. She says that her company reflects the idea that people need to send money and gifts to their loved ones, primarily when they are located internationally.
Busari also said that the firm has some ambitious growth plans and aims to target 10 per cent of market share in every market it enters. Flutterwave, the infrastructure provider that processes SendSprint's payments, has described it as timely.
The startup has also included some other features to aid its clients. This includes integrating the gift-card service Sprint Connect, which operates through alliances with over 3,000 merchants in recipient nations, including Shoprite, Africa's largest supermarket chain, Jumia, hospitals, and pharmacies.
Research on the typical uses of remittances to Africa served as the basis for the gifting service. The World Bank estimates that sub-Saharan Africa received $49 billion in personal remittances last year. Over 75% of the remittances are spent on everyday basics, including food, medicine, and school costs, to maintain one's well-being.
About Flutterwave
Based in San Francisco, California, Flutterwave is a fintech company. It provides payment infrastructure for payment service providers and global merchants. The company was founded in 2016 by Iyinoluwa Aboyeji and Olugbenga Agboola . One of the features the company offers is a unified set of payment tools, including transfers, payments and checkouts. It also enables businesses to grow online by providing invoices, payment links and eCommerce websites.
