CAB Payments has struck a deal with Visa designed to boost its services across emerging markets, as the fintech looks to move on from its disastrous London float last year.
The firm said on Thursday that the collaboration would see CAB’s network, spanning more than 100 currencies across over 700 currency pairs, connect with the Visa Direct system.
CAB – which specialises in FX and cross-border payments for “hard-to-reach markets” – said the partnership would enable its customers to move small transactions across across emerging markets cost-effectively, and settle them directly into an eligible card, account or wallet of their choosing.
For example, charities could more efficiently disburse funds and aid directly to recipients, remittance companies could more easily move money for their customers, and businesses could reduce the cost of making smaller value payments to freelancers, it added.
Making these types of payments typically presents challenges due to the extra costs incurred within jurisdictions that regulators consider more risky.
CAB said that last year, it facilitated £9.3bn of flows into lower income markets and £3.1bn of development aid flows.
“This collaboration is hugely significant for our clients,” said Neeraj Kapur, CAB’s chief executive.
“Our combined capabilities and expertise mean we’re able to reduce the cost and friction associated with moving money across hard-to-reach markets: getting more funds delivered more efficiently to those who need it the most.”
Kapur took over as CEO in June, succeeding Bhairav Trivedi who announced he would step down just seven months after floating CAB on the London Stock Exchange last summer at a valuation of £800m.
However, the firm fired out a profit warning in October after it was caught up in a major foreign currency policy shift from the Nigerian central bank, which hammered its revenues and sent shares plummeting.
CAB’s stock price remains down 65 per cent from its IPO.
In July, the firm reported that gross income for the first half of 2024 had dropped 22 per cent on last year, to £56m from £72m.
Part of this was due to “previously identified dislocations” in the Nigerian Naira as well as the impact of central bank interventions on the Central African Franc and the West African Franc.