dLocal KCB Partnership: More than a year after securing payment service provider licences from the Central Bank of Kenya (CBK) Uruguayan-born payments company dLocal has now finalized a partnership agreement with the Kenyan Commercial Bank (KCB).
KCB Bank’s approval of dLocal’s submission for a money remittances flow allows the free flow of money wire transfers through the country’s official banking system.
The opportunity to work directly with the Kenyan Commercial Bank eliminates third-party involvement, making transactions cheaper, faster, and more reliable for dLocal clients.
The ability to send and receive payments through a trusted source results in a lower likelihood of mishandled finances, and there has been a strong demand for such services.
Kenya is a key market for remittances and the country has seen the transfers hit a record $4B in 2023, equivalent to 3% of its GDP. The debut of dLocal’s remittance approval with KCB in Kenya bodes well for its broader expansion across Africa and comes after the company expanded its presence in Nigeria, Tanzania, South Africa, Rwanda, and Kenya (albeit with other licenses, approvals or partnerships almost a year ago).
“Securing licensing with Kenya is an exciting step for us. As the fifth largest inbound remittance market in Africa, many other markets look to Kenya when it comes to regulatory frameworks and offerings,” said dLocal CRO John O’Brien.
”This new approval will provide a fast, streamlined, and reliable option to Kenyan consumers and paves the way for further growth for dLocal’s payout solutions,” O’Brien added.
Founded in 2016, dLocal is a cross-border payment processor that connects global merchants to emerging markets.
The payments company says it started with one goal – to close the payments innovation gap between global enterprise companies, and customers in emerging economies. It adds that it is committed to Africa because merchants are signalling a strong demand for reliable and secure digital payment solutions across the continent.
dLocal powers local payments in high-growth markets, connecting global enterprise merchants with billions of high-growth market consumers across Africa, Asia, and Latin America. Through the “One dLocal” concept , global companies can accept payments, send payouts, and settle funds globally without the need to manage separate pay-in and pay-out processors, set up numerous local entities, and integrate multiple acquirers and payment methods in each market.
This expansion of dLocal’s group remittance offering into the Kenyan market highlights the untapped potential of Kenya’s status as a hub for financial and technological growth.
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