Fidelity Bank, led by Chairman Mustafa Chike-Obi, partners with mastercard to enhance cross-border payments in Nigeria

Key Points

1. Fidelity Bank and Mastercard have collaborated to launch "Fidelity Send," enhancing cross-border payments in Nigeria.
2. The service aims to address the challenges of high fees and slow processing times in remittances, boosting economic efficiency.
3. The initiative supports Mastercard’s goal of integrating one billion people into the digital economy by 2025.

Fidelity Bank Plc, led by Chairman Mustafa Chike-Obi, has teamed up with Mastercard to introduce a groundbreaking service aimed at revolutionizing cross-border payments and remittances in Nigeria.

The collaboration brings forth "Fidelity Send," a new product leveraging Mastercard's global network to offer near-real-time and cost-effective transactions for users.

Cross-border remittances are a vital component of Africa's economy, with an annual flow increase to Sub-Saharan Africa of approximately 1.9 percent in 2023, amounting to $54 billion.

Nigeria, a beneficiary, accounts for 38 percent of these flows. Looking ahead to 2024, remittances are expected to rise by 2.5 percept, highlighting a growing market and the increasing importance of efficient financial transactions across borders.

Despite the potential, challenges such as inadequate banking infrastructure, high transaction fees, and extended processing times have historically hindered broader adoption of cross-border payment solutions.

"Fidelity Send" aims to mitigate these issues by offering a reliable, transparent, and economical service. This initiative promises lower fees, absence of landing fees, broader management options, and guaranteed funds delivery, meeting the evolving demands of global customers.

Perspectives on financial solutions and impact

Osita Ede, the divisional head of product development at Fidelity Bank, remarked: "Our collaboration with Mastercard to introduce Fidelity Send demonstrates our commitment to addressing our customers' business and lifestyle needs through innovative products and services. We are pleased to offer a quick and seamless means of sending or receiving funds globally via various service touchpoints."

Folasade Femi-Lawal, country manager for West Africa at Mastercard, expressed enthusiasm about the partnership, stating: "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 advancements in payment technology, our goal is to empower people and enhance financial inclusion for millions in underserved communities."

She further highlighted Mastercard's broader goal of integrating one billion individuals into the digital economy by 2025, emphasizing 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, a leading commercial bank in Nigeria, serves over 7.2 million customers through its 250 business offices and multiple digital channels. The bank, which started as a merchant bank in 1988 and transitioned to commercial banking in 1999, focuses on niche corporate sectors and micro, small, and medium enterprises (MSMEs).