NALA receives a license from the National Bank of Rwanda, resulting from close collaboration between NALA and Rwanda’s financial regulator. The license unlocks a host of new payment capabilities including direct integration with banks and mobile money operators, disbursements such as for bill or school fees, and payment collections.This enables NALA to make international payments to Rwanda cheaper and more reliable.
NALA, an East African financial technology company, has grown rapidly in recent years via geographic expansion, product innovation and improvement on financial infrastructure. One of the critical elements to NALA’s growth has been their methodical approach to pursuing payment licenses.
Holding licenses permits the company to own more steps in the payment flow, including direct integration with banks and mobile money operators.The company received approval from the National Bank of Rwanda (NBR) for a Payment Service Provider license, which will enable direct integration with banks and mobile money operators locally.This is a major milestone towards NALA’s mission to build strong payment networks in Africa, and a signal of their intention to continue investing in Rwanda, given the country’s position as a global hub for business and investment.
NALA has been operating in Rwanda since 2021, partnering with other companies to disburse remittance payments to bank accounts and mobile money wallets.Since then, the company has processed 10,000+ transactions and helped thousands of Rwandan diasporans send money home.
This has resulted in over one billion Rwandan Francs being sent home from abroad. The new PSP license enables NALA to process disbursements and collections in-house, reducing cost and increasing reliability for those sending money to and collecting money from Rwanda.
With this new license in hand, NALA can now offer:
● Payment gateway services, allowing merchants to collect payments from
local channels such as mobile money or cards
● Direct integration with telcos and banks, opening up greater reliability and
control as well as reduced overhead costs
● Payment processing on behalf of third parties, such as other remittance
NALA group COO Nicolai Eddy said,“Enabling direct integration to banks and telcos allows us to address some of the most pressing and sticky challenges that individuals and businesses face when moving money across Rwanda’s borders.
Our new PSP license enables us to build these capabilities under our own roof, which means we can improve quality of service and reduce cost.We have worked closely with the Bank of Rwanda to complete the appropriate steps to become licensed as a Payment Service Provider.With this new license,NALA commits to supporting and collaborating with the Rwandan regulator and the relevant government agencies to accomplish our shared ambitions.”
The approval comes after the rollout of the Rwanda Fintech Policy 2022-2027, which aims to firmly establish Rwanda as a regional financial centre and advance the nation’s financial inclusion.The report states:
“The development of the Rwandan fintech landscape and the establishment of Rwanda as a fintech hub will attract investment and provide the technology and financial services needed to make Rwanda a global financial centre.Fintech also enhances the reach and efficiency of financial services more broadly to boost financial inclusion beyond payments.”