NALA, a Tanzanian fintech company, has secured an International Money Transfer Operator (IMTO) license from the Bank of Uganda, marking a significant milestone in its expansion across Africa. This move is expected to enhance cross-border payment services, allowing Ugandans in the diaspora to send money directly to local mobile wallets and bank accounts. The IMTO license, a Class A certification, empowers NALA to conduct cross-border transactions more efficiently, eliminating the need for recipients to visit banks or physical counters. This development is part of NALA's broader strategy to deepen financial inclusion and support the flow of remittances into Uganda, which plays a crucial role in household incomes, particularly for education, medical care, and daily expenses. NALA's Chief Operations Officer, Nicolai Eddy, emphasized that the company's service will be free of charge, positioning it as a competitive alternative in the remittance market. This license comes on the heels of NALA's $40 million Series A funding, aimed at bolstering the development of Rafiki, its new B2B payment platform. The fintech's entry into Uganda highlights the growing interest in the country's digital remittance market, which is projected to reach a transaction value of $17.99 million by the end of 2024, with an anticipated annual growth rate of 8.35% through 2028. The entry of new players like NALA and Flutterwave, which recently secured a Payment Systems Operator (PSO) license in Uganda, underscores the competitive dynamics shaping the region's fintech landscape.
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