Nigerian fintech company Nomba has introduced a new payment solution that allows Nigerian businesses to receive direct bank payments from customers in the United Kingdom. The initiative, developed through a partnership with UK-based financial technology firm Volume, uses Open Banking infrastructure to enable payments in British Pounds without relying on traditional card networks.
The development creates a simpler and more affordable payment corridor between Nigeria and the United Kingdom. For many Nigerian businesses that sell goods and services to UK customers, international payments have long been expensive and slow. The new system aims to reduce these barriers and allow merchants to keep more of their revenue.
By lowering transaction costs and simplifying payment processing, the partnership could make it easier for Nigerian entrepreneurs to expand into international markets, especially in the UK where there is already strong trade and diaspora activity.
Reducing the Cost of Cross-Border Trade
Cross-border payments between the UK and Nigeria have traditionally relied on global card networks. While these systems allow international payments, they also add multiple layers of costs. Businesses often pay fees for card processing, currency conversion and international transaction handling.
For Nigerian merchants selling to UK customers, these charges can reach as high as seven percent of each transaction. This has often been described as a “diaspora payment tax” because it reduces the earnings businesses receive from customers abroad.
The new payment corridor created by Nomba and Volume is designed to remove many of these inefficiencies. Instead of routing payments through card processors, customers in the UK can now pay directly from their bank accounts.
This approach significantly lowers costs. Transaction fees are expected to drop from more than six percent to around one percent. For small and medium-sized enterprises, this difference can translate into higher margins and better pricing flexibility.
Lower costs can also make Nigerian businesses more competitive internationally. When merchants keep more of their revenue, they can reinvest in inventory, marketing or product development.
A Faster and Simpler Payment Experience
The payment process itself is designed to be simple for both customers and businesses. When UK buyers reach checkout, they can choose to pay through a direct bank transfer. The payment is then authorized through their own banking app using the United Kingdom’s secure Faster Payments system.
This infrastructure allows funds to move quickly, often almost instantly.
For Nigerian merchants, payments are received in a dedicated GBP wallet provided by Nomba. Businesses can hold the funds in British Pounds or convert them into other currencies when needed. This multi-currency capability gives merchants more control over their international revenue.
The system also removes many of the delays that usually come with international settlements. Traditional cross-border transactions often take several days to process, especially when multiple financial intermediaries are involved. With this new model, businesses can receive funds faster and manage their cash flow more effectively.
Early users are already seeing the benefits. Lagos-based beauty brand BeautyByDaz Nigeria processed more than £5,500 from UK customers during its first two months using the system. Founder Zaynab Odusote said the ability to handle both domestic and international sales through one dashboard has simplified the company’s operations and financial tracking.
The initiative also forms part of Nomba’s wider expansion strategy. The company has recently moved into the Democratic Republic of Congo and acquired a Canadian payment service provider as it works to strengthen global payment connections for African businesses.
According to Nomba’s chief executive Yinka Adewale, the long-term vision is to make international payments feel as easy as local transactions. By using Open Banking technology and building new payment corridors, the company hopes to remove the financial barriers that often limit African entrepreneurs.
The new UK corridor is an important step in that direction. It connects Nigerian businesses directly to one of their largest overseas markets while offering a faster and more affordable way to move money across borders.
If widely adopted, the system could help many Nigerian small businesses grow their international customer base and participate more actively in global trade.
