African payments company NALA has received a major license from the Central Bank of Tanzania, following close collaboration between the company and Tanzania’s financial regulators. The fintech company will invest $1million to support product innovation and create new jobs in Tanzania.
NALA, which provides a money transfer platform as one of its core services, has now been approved as a Payment Service Provider (PSP), enabling direct integration with banks and mobile money operators such as MPesa.
The company’s $1million investment comes after receiving the licence to power product innovation in Tanzania. NALA has grown rapidly via geographic expansion, product differentiation and by improving existing infrastructure.
NALA recently received its PSP license in Tanzania, enabling the development of a number of new offerings such as business payments, merchants services and outbound payments from Tanzania, as well as direct integration with local banks and telcos.
President of the United Republic of Tanzania, H.E. Dr. Samia Suluhu Hassan, awarded NALA the license as part of his ongoing initiatives and efforts, to empower young people and foster an environment that makes it simple for businesses to invest in the nation.
‘Making a major commitment’
Benjamin Fernandes, founder and CEO of NALA, said: “Two of NALA’s biggest goals in the last year have been enabling direct integration to banks and telcos and tackling the challenges that businesses face in moving money across borders.
“We have worked closely alongside the Bank of Tanzania to complete the appropriate steps to receive our license as a Payment Service Provider. With this new license in hand, NALA is making a major commitment to invest $1million to build our most ambitious projects ever in our home market of Tanzania.”
Despite many options for sending money to Africa from abroad existing, the continent continues to be the most expensive place to send money to. The World Bank estimates average transfer fees to Africa sit around nine per cent. Many existing options also include hidden fees, making it hard to discern the true cost of sending money. NALA is working towards changing the paradigm of financial tools for Africans by providing fair and transparent services to empower people with control over their finances.