Cross-border payments remain one of the major challenges facing businesses and individuals across Africa, with transactions sometimes taking several days to complete. Nigerian fintech startup Bani is attempting to address the problem by building direct integrations with banks across different markets.
The startup is developing infrastructure designed to make international transfers faster and more seamless by connecting directly to financial institutions rather than relying entirely on traditional payment routes.
The approach comes as African businesses increasingly operate across national borders and demand payment systems capable of moving money quickly between countries.
Cross-border payments in Africa can be complicated by multiple intermediaries, fragmented banking systems, foreign exchange processes and different regulatory requirements across countries.
For businesses, these challenges can translate into delayed settlements, higher transaction costs and uncertainty over when funds will arrive.
Bani is betting that direct bank integrations can reduce some of these bottlenecks.
Instead of building a payment network that operates independently of existing banks, the company is seeking to connect directly with financial institutions, allowing transactions to move through established banking infrastructure.
The strategy could help reduce the number of intermediaries involved in certain cross-border transactions while improving visibility and settlement times.
Africa has a rapidly expanding digital payments ecosystem, but payment infrastructure remains fragmented across the continent.
A business sending money from one African country to another may have to navigate different currencies, banking regulations, payment rails and settlement systems.
This fragmentation has created an opportunity for fintech companies to develop infrastructure that makes cross-border transactions easier.
For startups and businesses that operate in multiple African markets, faster access to funds can be particularly important for paying suppliers, employees and service providers.
Bani’s model focuses on establishing direct connections with banks, allowing the fintech to build payment infrastructure around existing financial institutions.
The company believes this approach can help address some of the delays associated with conventional cross-border payment systems.
Direct bank integrations can also potentially provide greater control over transaction flows and improve the reliability of payment processing.
The broader objective is to create infrastructure that enables money to move between African markets more efficiently.
Bani is entering a market that has attracted significant interest from fintech companies, banks and payment infrastructure providers.
The growth of digital commerce and intra-African trade has increased demand for payment systems that can operate across borders.
The challenge for companies such as Bani, however, extends beyond technology.
They must also navigate financial regulations, foreign exchange rules, banking relationships and compliance requirements in multiple jurisdictions.
Building a reliable network of direct bank integrations could therefore become an important competitive advantage if Bani succeeds in expanding across African markets.
Africa’s cross-border payments market is likely to become increasingly important as businesses take advantage of regional trade opportunities and digital platforms make it easier to sell products and services beyond domestic markets.
The success of the African Continental Free Trade Area is also expected to increase economic activity between African countries, potentially creating greater demand for efficient payment infrastructure.
For fintech companies, the opportunity is not simply to make payments digital but to make them faster, cheaper, more predictable and easier to access.
Bani is positioning its direct-bank integration strategy around that challenge.
If the startup can build a sufficiently broad network of banking connections, it could help reduce some of the friction currently associated with moving money across African borders.
The company’s approach highlights a broader shift in African fintech: from consumer-facing payment applications towards the underlying infrastructure needed to make the continent’s increasingly interconnected digital economy work.
