IFC Announces $75M Package for TerraPay to Enhance Affordable Remittances in Africa

African customers can also send and receive funds within Africa, as well as to and from markets across Europe and Asia.

To boost access to affordable remittances and support livelihoods and business activity across Africa, the International Finance Corporation (IFC) has announced a $75 million financing package for TerraPay, an Africa-focused digital payments provider.

The financing package includes a $30 million loan from IFC's own account, a $15 million B Loan provided by asset manager ILX under IFC's B Loan Program, and a combined parallel loan of $30 million from development finance institutions OP Finnfund Global Impact Fund I and BIO. This funding will help TerraPay expand its operations by partnering with more global money transfer operators and increasing the volume of transfers it processes across Africa, ultimately reducing costs, enhancing speed, and simplifying international remittance transfers.

In Africa, TerraPay customers can send money from 41 countries and receive funds from 40 countries. African customers can also send and receive funds within Africa, as well as to and from markets across Europe and Asia.

"Our association with IFC goes back a long way and as we continue our journey towards growth, their support continues to be invaluable. This has fueled our mission, enabling us to strengthen our infrastructure, expand our network, and invest deeply in technology and solutions that solve real-world problems," said Ambar Sur, Founder and CEO of TerraPay. "As we deepen our partnership, I look forward to furthering our common vision to boost financial inclusion and accessibility, empowering families, individuals, and businesses across the African continent leveraging our vast global payments network."

"At IFC, we are committed to creating opportunities for inclusive growth in Africa, including by leveraging digital solutions to bridge financial gaps and improve livelihoods," said Aliou Maiga, IFC's Regional Industry Director for the Financial Institutions Group for Africa. "Through this partnership, we aim to support a robust digital payment infrastructure that empowers individuals and small businesses."

TerraPay streamlines the remittance process by integrating and connecting major markets and money transfer operators such as Western Union, MoneyGram, and Ria, thereby supporting household incomes and small businesses, and contributing to overall economic development.

In 2019, IFC invested $8 million as part of the Series A funding round for TerraPay. The investment announced today aligns with the World Bank Group's goal of achieving universal access to financial services, which is crucial for improving the lives of disadvantaged and vulnerable populations.