SendSprint, a money transfer startup based in the U.K. but with operations in the U.S. and Nigeria, has been launched today with the unique selling point of a $5 flat fee for all transfers.
The fintech will, in the first 18 months, target 300,000 of the 1.7 million Africans in the U.K. and grow from there to the U.S. and Canada. It enters a remittance market that is dominated by industry veterans Western Union and MoneyGram and the relatively new fintechs like Zepz (formerly WorldRemit), Remitly, and Wise.
It is, however, its flat-fee value proposition across all transactions that might give it an edge over competitors, all of whom run a sliding scale, which often tremendously increases with the method of payment selected by the sender, reaching over $10 to send $200 by some vendors.
With three initial destination countries — Kenya, Nigeria, and South Africa — SendSprint is partnering 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 U.K. launch represents a significant step for SendSprint as we look to expand and connect people across the globe to their homes in Africa. We have ambitious growth targets which will be supported by scaling up our team across both product and customer service,” said SendSprint founder and CEO Damisi Busari in a statement.
Ms. Busari, a former Flutterwave executive, says she founded SendSprint to connect the African Diaspora “to loved ones at home by enabling fast, simple and hassle-free international transfers.”
Her product goes a step further to embed a gift-card service, Sprint Connect, which works through partnerships with over 3,000 retailers in recipient countries, including Africa’s largest supermarket retailer Shoprite, e-commerce Jumia, hospitals, and pharmacies.
The gifting service was guided by research on how remittances to Africa are commonly used. Last year, sub-Saharan Africa received $49 billion in personal remittances, according to the World Bank. Most of the remittances — over 75% — are used for sustenance through the purchase of daily necessities like food, medicines and school fees.
“We understand the connection that people have with their home countries and the importance of sending money and gifts home to support loved ones … Our service recognizes and reflects this,” said Busari.
“We are ambitious in our growth targets and are targeting 10% market share in each of the markets entered.”
Flutterwave, which provides the infrastructure to process SendSprint’s payments, described the early-stage startup as timely.