Moneymie has shut down its digital bank for immigrants to focus on B2B services
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Moneymie has shut down its digital bank for immigrants to focus on B2B services

Moneymie suspended its digital bank service, which allowed African immigrants in North America to send and receive money from Nigeria, Ghana, and South Africa, on August 9, 2022.

Although Moneymie is discontinuing its B2C services, the fintech company announced that it will focus on cross-border payments and payouts for business users through its B2B platform and APIs.

According to Crunchbase, Opeyemi Awoyemi, who founded WhoGoHost and Jobberman (exited), founded Moneymie in 2019. According to the notification to its customers, in-wallet funds will be refunded to users’ originating accounts before August 31, 2022. The Moneymie App has been removed from the Google and Apple app stores, but its B2B platform is still operational. This development occurred two months after Michelle Van Staden was appointed CEO of the neobank.

Since 2020, remittance inflows to Sub-Saharan Africa have been increasing; last year, they increased by more than 6% to $45 billion. However, despite the steady increase in remittance inflows to the region, this activity has not become less expensive. According to the World Bank, Sub-Saharan Africa continues to be the most expensive region for sending and receiving money; sending $200 costs an average of 8% in fees, compared to a global average of about 6%.

Transparency among remittance providers is one of the factors influencing these rates, according to the World Bank’s Remittance Prices Worldwide. Aside from Moneymie, other fintechs such as Lemonade Finance, Zazuu, and Vesti App facilitate remittances for Africans living in the diaspora.

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