Fidelity Bank Plc and Mastercard have collaborated to launch a new initiative to improve cross-border payments and remittances in Nigeria.

According to the partners, this collaboration aims to foster financial inclusion by exploiting Mastercard's global network to facilitate outgoing transactions in near real time and in a cost-effective manner.

“The app will enable smooth and faster payment transactions for both businesses and customers,” said Osita Ede, division manager, product development, product development, Fidelity Bank Plc.

“We are happy to offer our valued customers a fast and seamless way to receive or transfer funds globally through a range of service touchpoints,” said Ede.

The bank reported that cross-border remittances continue to play an important role in the African economy, with flows to sub-Saharan Africa increasing by around 1.9% in 2023 to reach $54 billion in 2023 to $54 billion, with Nigeria accounting for 38% of flows.

“By 2024, remittance flows to the region are expected to increase by 2.5%, offering businesses significant opportunities to expand their services and tap into the growing market for cross-border financial transactions. However, limited banking infrastructure, high fees, and long processing times are holding back the adoption of these measures.

The partners explained that the collaboration aims to address these challenges by providing a faster, more reliable, more profitable, and more transparent solution with lower fees, no landing fees, no landing fees, broader management options, and guaranteed cash delivery, perfectly aligned with the evolving needs of customers.

MasterCard explained that the collaboration with Fidelity Bank reinforces the initiative and allows both parties to connect and fuel an inclusive digital economy that will benefit everyone regardless of geographic location.