The International Finance Corporation (IFC), a global development institution focused on the private sector in developing countries and a member of the World Bank Group, has announced a financing package for TerraPay, an Africa-focused digital payments provider.
The aim of the package, IFC says, is to boost access to affordable remittances and support livelihoods and business activity in countries across Africa.
IFC has arranged a US$75 million financing package for TerraPay, which includes a $30 million loan from IFC's own account, with the remainder coming from an asset management group and two development finance institutions.
IFC says the financing will help TerraPay expand its operations by partnering with more global money transfer operators and increase the volume of transfers it processes across Africa. This expansion, IFC explains, will help reduce costs, enhance speed and simplify international remittance transfers.
In Africa, TerraPay customers can send money from 41 countries and receive from 40 countries. African customers can not only send and receive funds within Africa, but also to and from markets across Europe and Asia.
TerraPay streamlines the remittance process by integrating and connecting major markets and money transfer operators such as Western Union, MoneyGram and Ria, supporting household incomes and small businesses, and contributing to overall economic development.
The investment aligns with the World Bank Group's goal of achieving universal access to financial services, which, IFC says, is crucial for improving the lives of disadvantaged and vulnerable populations.
The TerraPay association with IFC goes back a long way. Indeed, in 2019, IFC invested US$8 million as part of the Series A funding round for TerraPay.
Ambar Sur, Founder and CEO for TerraPay, says: "As we continue our journey towards growth, their [IFC] 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."
