The unification of Nigeria's foreign exchange (FX) rate is expected to impact digital remittance startups, potentially altering their strategies and introducing more competition. Traditional banks are making a comeback by offering improved FX services and targeting Nigerians in the diaspora for cross-border transactions. While banks may gain a larger market share, experts believe that digital remittance startups are better positioned to win due to their digital-first approach, offering ease and better customer service. Startups can also leverage their narrow focus to innovate quickly and enhance user experience, lower transaction costs, and expand their reach to underserved markets. Some fintechs have already launched payment products allowing Nigerian students to pay international tuition in Naira, and users to receive remittances in Naira. Despite the competition, fintechs may still have an advantage as they have earned customer trust and reliability during past cash crunches, demonstrating their ability to offer effective services.

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