RemX payment solution and business model were so effective in Nigeria that it was necessary to take it around Africa. As such, the company expanded to Kenya in the year that followed. Kenya was a choice destination because it is the second largest market for FinTechs and it has a large presence of Nigerian banks. These made for easy market penetration. In the East African country, RemX Limited offers its unique interpolitical services to corporates and FinTechs in several cities, thereby enhancing their ability to meet their cross border settlement obligations with more ease. RemX Kenyan penetration is however not without challenges.
Kenya’s financial services sector and digital payments pathway is still in the developmental stage. Card penetration was said to be at a figure of 31 cards per 100 individuals as at 2018 with as low as 15.1 transactions per year. These were lower than what was obtainable in neighboring countries, Morocco, Egypt and South Africa. Kenya’s economy largely depended on cash and payment cards had limited acceptance at merchant locations. In 2018, cash accounted for 88.7% of the total payment transaction volume. The Kenyan people preferred to do business in cash and were skeptical of card transactions. Besides, they didn’t want to pay the high fees that came with those. When alternative banking systems emerged therefore, they were a bit relieved and the card hostility dropped. Kenya has now come a long way since 2018 with the presence of companies like RemX Capital Ltd but there is still a lot to cover.
Mobile payment solutions are gaining ground because of the convenience that they offer. They are also widely regarded as being a cost effective choice. Mobile payment solutions are attractive because they charge lower processing fees and are able to reach the unbanked. Kenyan government initiatives and politicians in recent times have also promoted card usage opening up a market that has been unexplored for years. That’s not to say that the financial services sector in Kenya is now stable. Everything from payment processing to card usage is in the developmental stage.
These challenges of digital payments in Kenya are aggravated by little to no presence of multi-currency payment systems. This means that Kenyan businesses are largely unempowered to receive payments from customers in other countries. But the reverse is also the case and companies operating outside Kenya experience the same challenges if they are dealing with customers from the East African country. RemX is a powerful solution for this payment crisis. The company has recently expanded into the country and is resolving these problems for its customers and the Kenyan economy. RemX partners with banks to ensure smooth processing times and security of funds. As such, every RemX customer is provided with a dedicated account number to avoid mix up of funds.
The entrance into Kenya means a more viable and flourishing economy. It will see an increase in card payment transactions in the country and even help Kenyan entrepreneurs and businesses explore wider profitable landscapes. These Companies can concentrate on building their business now that there is an industry stakeholder taking care of the most critical aspects of their business. The growth that RemX can engineer in Kenya is one that would be felt by every part of the Kenyan economy from business bank accounts and e-commerce to technology. While RemX processes the payments, these businesses can concentrate on building their businesses and obtaining new clients. RemX has a track record of revolutionizing the financial services sector. Founded by Eghosa Nehikhare, who is the firm’s director, and funded and incubated by Venture Garden Group (VGG), RemX is a company that has brought impactful transformation to how African businesses do business and how they handle their money. VGG is owned by Olufemi Olukunmi Demuren, Olubunmi Akinyemiju and Demola Idowu. The three Nigerian FinTech tycoons are also major shareholders and investment partners of RemX, OIT Africa and Avalon Offshore Logistics. VGG has incubated companies from many industries including education, logistics, financial services, energy, health, transportation, cleaning and laundering services, education and more.
With RemX help, these businesses are beginning to worry less where their clients come from or how to get paid. With its multi-currency payment systems, companies can worry less about the currency they are being paid in and more about obtaining their ideal clients. They can now focus on growing their business. This innovation is what RemX is bringing to the payment landscape in Kenya. It will drive success for Kenyan businesses, companies doing business with Kenyan clients and the Kenyan economy as a whole.