Fidelity Bank Plc, led by Chairman Mustafa Chike-Obi, has partnered with Mastercard to launch a pioneering solution that aims to transform cross-border payments and remittances in Nigeria.
The collaboration creates “Fidelity Send,” a new tool that takes advantage of Mastercard’s global network to provide customers with near-real-time and cost-effective transactions.
Cross-border remittances are an important part of Africa’s economy, with projected annual flow increase to Sub-Saharan Africa of around 1.9 percent in 2023, totaling $54 billion.
Nigeria, a beneficiary, accounts for 38% of these transfers. Looking ahead to 2024, remittances are predicted to increase by 2.5 percent, indicating a growing market and the increasing relevance of effective cross-border financial transactions.
Despite the promise, difficulties such as poor banking infrastructure, hefty transaction costs, and lengthy processing times have historically slowed the widespread adoption of cross-border payment systems.
“Fidelity Send” strives to address these concerns by providing a dependable, transparent, and cost-effective service. This project promises lower prices, no landing fees, more management options, and assured cash delivery to address the changing needs of global consumers.
Osita Ede, Fidelity Bank’s divisional head of product development, stated: “Our collaboration with Mastercard to introduce Fidelity Send demonstrates our commitment to meeting our customers’ business and lifestyle needs through innovative products and services.” We are glad to provide a speedy and easy means of transferring or receiving payments abroad through a variety of service touchpoints.”
Folasade Femi-Lawal, Mastercard’s country manager for West Africa, expressed excitement about the agreement, saying, “We are honored to collaborate with Fidelity Bank to introduce solutions that offer greater choice, security, and flexibility to individuals and businesses in Nigeria.” With recent improvements in payment technology, we hope to empower people and improve financial inclusion for millions in neglected places.”
She also emphasized Mastercard’s overarching goal of integrating one billion people into the digital economy by 2025, stating that this collaboration with Fidelity Bank is a strategic move to strengthen these efforts and promote an inclusive digital economy that benefits everyone, everywhere.
Fidelity Bank is a large commercial bank in Nigeria, serving over 7.2 million customers through 250 business branches and several internet channels. The bank, which began as a merchant bank in 1988 before transitioning to commercial banking in 1999, specializes in specialty corporate sectors as well as micro, small, and medium-sized enterprises (MSMEs).
