Nomba is launching a global payment API to simplify international transfers

Nomba highlighted the operational challenges faced by cross-border payment companies in Nigeria, pointing to structural shortcomings that continue to impact cash flow, regulatory compliance, and overall profitability in the sector. According to the company, operators often have to contend with a complicated process that begins when customers deposit naira and requires them to independently source foreign currencies, such as dollars, euros, or pounds, on over-the-counter markets while transactions are already in progress.

This process places a significant strain on liquidity, as capital is effectively tied up at both ends of the transaction. Funds in naira remain idle on the receiving end, while corresponding foreign exchange reserves must be maintained to cover payouts, which limits the effective use of capital and reduces payment service providers’ margins.

In addition to liquidity challenges, Nomba also highlights the regulatory burdens associated with operating across multiple international payment corridors. Payments companies must simultaneously comply with a variety of legal frameworks, including oversight by the Central Bank of Nigeria, as well as international bodies such as the UK’s Financial Conduct Authority (FCA), the European SEPA and GDPR systems, and Canada’s Financial Transactions and Reports Analysis Centre (FCARC). This fragmented regulatory landscape often limits expansion, as navigating multiple regulatory systems requires significant resources and institutional capacity.

In response to these challenges, Nomba has introduced the Global Payout API, designed to streamline cross-border transactions. This solution provides virtual accounts for pooling funds and enables instant currency conversion within the same transaction process, eliminating the need to manually source foreign currencies and reducing the need to maintain separate liquidity pools.

The platform also offers financing options using stablecoins such as USDT and USDC, allowing businesses to avoid the risks associated with the depreciation of the naira and maintain a more stable cost structure. Furthermore, regulatory requirements are built into the infrastructure, enabling operators to expand into multiple markets without having to manage regulatory obligations in each jurisdiction on their own.

Overall, Nomba positions its solution as a response to the fundamental structural challenges associated with cross-border payments in Nigeria, with the aim of streamlining operations, improving capital efficiency, and supporting the growth of digital financial services in international markets.