IFC expands remittances relationship with TerraPay
Africa
,
11 Jul 2024
To enhance access to affordable remittances, the International Finance Corporation (IFC) unveiled a financing package for TerraPay, an Africa-focused digital payments service, yesterday.
IFC arranged a $75 million financing package for TerraPay, which included a $30 million loan from IFC's own account, a $15 million B Loan from asset manager ILX under IFC's B Loan Program, and a $30 million parallel loan from development finance institutions OP Finnfund Global Impact Fund I and BIO.
According to the IFC, the funds would allow TerraPay to expand its operations by partnering with new global money transfer operators and increasing the volume of transfers processed across Africa.
The expansion will help reduce the costs, enhance speed, and simplify international remittance transactions, said IFC.
The funds announced yesterday are the company's most recent backing, following IFC's $8 million contribution to TerraPay's Series A financing round in 2019.
TerraPay users in Africa can send money to 41 countries and receive it in 40. African customers can also transfer funds not only within Africa, but also to and from markets in Europe and Asia.
Ambar Sur, founder and CEO TerraPay, said: "Our association with IFC goes back a long way and as we continue our journey towards growth, their support continues to be invaluable. This has fuelled our mission, enabling us to strengthen our infrastructure, expand our network and invest deeply in technology and solutions that solve real-world problems."
For Aliou Maiga, IFC's regional industry director for the financial institutions group for Africa, IFC is committed to creating opportunities for inclusive growth in Africa, including by leveraging digital solutions to bridge financial gaps.
"Through this partnership, we aim to support a robust digital payment infrastructure that empowers individuals and small businesses," said Maiga.