PesaLink, NALA, Equity Bank partner to transform remittances in Kenya

PesaLink, NALA, and Equity Bank have forged a transformative partnership to overhaul cross-border payments, making them faster, more reliable, and more affordable for millions of Kenyans, particularly those in the diaspora.

With remittances to Kenya hitting a record US$4.94 billion in 2024, this collaboration leverages cutting-edge fintech, instant payment infrastructure, and robust banking networks to streamline the flow of funds, reduce costs, and drive financial inclusion.

Here’s a deep dive into how this partnership works and why it matters for Kenya’s economy and its global diaspora.

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The partnership brings together three key players, each contributing unique strengths to create a seamless remittance experience:

1. NALA’s Global Fintech Platform: NALA, a rising star in the global fintech space, provides a user-friendly mobile app that enables Kenyans in the US, UK, and Europe to send money home effortlessly. Users can initiate transfers using debit cards or bank accounts, making the process accessible and intuitive. NALA’s focus on affordability and speed ensures that diaspora senders can support their families and businesses in Kenya with minimal friction.
2. PesaLink’s Instant Payment Infrastructure: PesaLink, operated by Integrated Payment Services Limited (IPSL), is Kenya’s leading real-time payment network, connecting over 80 participants, including banks, SACCOs, telecommunications companies, and fintech firms. It supports instant account-to-account transfers of up to Ksh 999,999, eliminating the need for intermediaries that often inflate costs and delay transactions. By routing cross-border payments through this network, the partnership ensures near-instant delivery of funds.
3. Equity Bank’s Extensive Local Network: As one of Kenya’s largest financial institutions, Equity Bank provides the critical settlement infrastructure and a vast network of branches and agents across the country. This ensures that recipients can access funds directly in their mobile wallets or bank accounts, even in underserved rural areas, enhancing the reach and impact of remittances.

Together, these entities are digitizing and optimizing the remittance process, aligning with Equity Group’s broader Africa Recovery and Resilience Plan to foster inclusive economic growth across the continent.

Why This Matters 

Remittances are a lifeline for Kenya’s economy, contributing significantly to foreign exchange reserves and household incomes. In 2024, diaspora remittances reached an unprecedented US$4.94 billion, underscoring their role as a vital economic driver. However, traditional cross-border payment systems have long been plagued by high fees, slow processing times, and limited accessibility, particularly for underserved communities. Globally, billions of dollars are lost annually to remittance fees, as noted by Nicolai Eddy, NALA’s Chief Operating Officer. This partnership tackles these challenges head-on, offering a solution that is both cost-effective and inclusive.

How the Partnership Works

The collaboration is designed to streamline every step of the remittance process, from initiation to receipt. Here’s how it operates:

1. Initiating Transfers via NALA: Kenyans abroad use the NALA app to send money. The app’s intuitive interface allows users to select their preferred payment method—debit card or bank account—and specify the recipient’s mobile wallet or bank account in Kenya. This simplicity ensures that even first-time users can navigate the process with ease.
2. Routing Through PesaLink: Once a transfer is initiated, funds are channeled through PesaLink’s instant payment network. By bypassing traditional intermediaries such as correspondent banks, PesaLink reduces transaction costs and eliminates delays. The network’s ability to handle real-time transfers ensures that money arrives in recipients’ accounts almost instantly, supporting urgent financial needs like school fees, medical expenses, or business investments.
3. Settlement via Equity Bank: Equity Bank’s robust infrastructure ensures that funds are securely settled and delivered to recipients’ mobile wallets or bank accounts. With its extensive presence across Kenya, including in rural areas, Equity Bank bridges the “last-mile” gap, making remittances accessible to communities that traditional banking systems often overlook.
4. Enhanced Data and Reconciliation: The partnership also benefits fintechs and remittance companies by providing access to PesaLink’s trusted infrastructure and richer payment data. This improves transaction reconciliation, reduces errors, and enhances transparency, creating a more reliable system for all stakeholders.