Kenyan fintech firm WapiPay has entered the Canadian market after receiving a Money Services Business (MSB) licence from the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), marking its first regulated presence in North America.

The approval allows the Nairobi-based company to provide foreign exchange, money transfer and payment services through a newly established Canadian subsidiary.

It also permits the company to handle transactions involving virtual currencies and digital assets.

The move comes as African fintech companies seek licences in overseas markets to simplify cross-border payments and lower the cost of moving money between developed economies and emerging markets.

For many businesses and migrants, international transfers remain expensive. World Bank data shows that sending $200 to Sub-Saharan Africa costs an average of 7.7 percent of the transaction value, making it the world’s most expensive remittance corridor.

WapiPay’s expansion adds Canada to a network that already spans Africa, Asia, the United Kingdom and the Caribbean.

Building a North American presence

“Securing a footprint in North America through obtaining a Money Services Business licence is a massive milestone for WapiPay,” co-founder and CEO Edward Ndichu said.

“By pairing traditional fiat payment capabilities with virtual currencies and digital assets under a robust Canadian regulatory framework, we are building the next generation of global financial rails,” he added.

The licence gives WapiPay access to one of the world’s largest remittance markets and strengthens its efforts to serve businesses and individuals moving money across borders.

Growing beyond Africa and Asia

Founded in 2019 by twin brothers Eddie Ndichu and Paul Ndichu, WapiPay initially focused on facilitating payments between Africa and Asia, serving traders and small businesses operating across both regions.

The company has since broadened its international reach. In April, it received approval to launch operations in Jamaica, which it plans to use as a hub connecting trade and remittance flows between Africa, Asia and the Caribbean.

Expanding financial services

WapiPay has also moved beyond payments. In February, the company launched a remittance-based credit scoring platform designed to help Kenyan banks assess borrowers with little or no formal credit history.

The platform uses diaspora remittance data to provide lenders with additional information, reflecting a wider push by fintech firms to turn payment flows into services that support access to credit.