(MENAFN- The Arabian Post)

Fintech firm Afriex has announced a strategic collaboration with payments giant Visa to deliver real-time cross-border transfers to over 160 markets, marking a significant expansion of its global payments network. The platform will integrate with Visa's“Visa Direct” service through Afriex's financial institution partner, enabling eligible Visa endpoints to receive funds instantaneously, according to the announcement.

Afriex's chief executive, Tope Alabi, emphasised that“for the millions of families and businesses who depend on remittances, speed and transparency matter most. Working with Visa allows us to pair Afriex's innovation with Visa Direct's global network, so money moves in real time, not days.” This move comes amid rising global demand for faster international payment solutions and reflects Afriex's mission to make international transactions seamless and affordable.

Analysts note that global remittances to low- and middle-income countries reached about US $669 billion in 2023, underscoring the scale of the opportunity for fintechs such as Afriex. By extending its reach via Visa's network, Afriex is able to tap into billions of potential endpoints, thereby enhancing its value proposition for both individual users and businesses. At the same time, the layer of real-time push payments to Visa endpoints addresses a long-standing bottleneck in cross-border flows, namely delays and opaque processes associated with traditional systems like SWIFT.

Afriex, a United States-based company registered in Delaware, is licensed as a Money Service Business with the U. S. Financial Crimes Enforcement Network and operates multiple global corridors including Africa and Europe. Its earlier expansion into Asia-including markets such as China, India and Pakistan-was designed to meet mounting demand for affordable cross-border payments and strengthen its corridor infrastructure. That capability now stands to be amplified through the Visa tie-up.

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The technical backbone of the collaboration relies on Visa Direct's push-to-account infrastructure, which allows funds to land directly in eligible Visa-branded accounts rather than staging through intermediary banks. That offers a quicker payment journey and potentially lower counterparty risk. However, one caveat in Afriex's announcement is that availability is contingent on the recipient financial institution's eligibility and the specific endpoint being a Visa-enabled account. The company notes that“actual funds availability depends on receiving financial institution”.

The broader payments industry is observing growing consolidation between fintech innovators and established global payment networks. By combining Afriex's corridor know-how and digital-first platform with Visa's scale and regulatory footprint, the collaboration may serve as a model for other fintechs aiming to scale quickly. For Afriex, the move strengthens its standing amidst heavy competition from other remittance specialists and dominant banks which are increasingly seeking to upgrade their cross-border capabilities.

That said, several challenges remain. Regulatory compliance across multiple jurisdictions continues to be a hurdle, especially in regions with undeveloped payments infrastructure or volatile currencies. Exchange-rate spreads and fees remain a pain point for many senders in the diaspora. While Afriex highlights“zero-to-low fees” in its remit, a full breakdown of cost structure compared to incumbents is yet to be widely available. Moreover, while the announcement claims access to 160+ markets, individual corridor-by-corridor rollout may vary in timing, payout methods, and local banking integration.

From a user perspective, this development could significantly enhance the experience of diaspora populations sending money home or small businesses conducting cross-border trade. Real-time crediting to a Visa account removes the wait-time uncertainty that is typical in many remittance corridors. For local recipients in underserved regions, faster access to funds can make a tangible difference-whether in covering education fees, small business cash-flow or responding to emergency needs.

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