Kuda Sees More Paid Transfers Than Free as Digital Banking Matures in Nigeria
Kuda Technologies, a leading digital bank in Nigeria, processed more paid transfers than free ones in the first quarter of 2025, according to data shared by CEO Babs Ogundeyi during a media briefing in Lagos.
In the first three months of the year, Kuda processed transactions worth N14.3 trillion (approximately $9.3 billion) across over 300 million individual dealings. Of this total, retail banking users accounted for N8.5 trillion ($5.5 billion), while business users contributed N5.8 trillion ($3.7 billion).
Transfers remained the most utilized service on the platform, with business users generating N1.5 trillion in transfer volume alone.
The bank reported that paid transfers exceeded free ones for the first time, driven by increased usage across both individual and business accounts. This follows steady adoption of Kuda’s core features, particularly among small business owners and freelancers who rely on the app for day-to-day operations.
Kuda also recorded higher activity in its lending and savings segments during the quarter. The bank issued N17 billion in overdrafts, surpassing its 2023 annual total of approximately N19 billion.
According to Ogundeyi, credit issuance rose by 50% compared to the previous quarter, supported by improved credit modeling. Additionally, Kuda paid N130 million in interest to savings users during the period.
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Kuda’s multicurrency wallet, relaunched in Q1 2025, is currently available in euros and British pounds and supports direct transfers to Nigerian bank accounts.
It targets customers in the diaspora and is part of the bank’s efforts to tap into Nigeria’s $20.9 billion annual remittance market.
U.S. and Canadian dollar support is expected to be added within six months, though regulatory restrictions continue to limit foreign currency use among Nigeria-based customers.
Nosakhare Oyegun, Kuda’s senior vice president for business banking, said the updated wallet aims to simplify the remittance experience for users abroad by consolidating services into one platform.
The bank is also expanding its international footprint, having secured payment licenses in the UK, Canada, Tanzania, and Pakistan.
A $20 million equity round raised in 2024 at a $500 million valuation is supporting Kuda’s expansion and technology development plans.
These include AI-driven features such as a customer support chatbot and tools for small and medium-sized enterprises to manage cash flow and access business banking services.
The operational update represents Kuda’s most detailed public disclosure to date, expanding beyond previous reports focused primarily on user acquisition milestones.
The bank surpassed 7 million users by January 2024 and has since shifted its focus to product development, credit performance, and international growth.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.
