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LemFi Offers Cashback to Ugandan Diaspora Sending Money Home

Ugandans in the UK, US, and Canada can use the referral code MBU to get a cashback of £15 or $30 the first time they send £100, $100, or more.

The African diaspora, particularly those living in major hubs like the US, UK, and Canada, have long faced significant challenges when sending money back to their home countries in Sub-Saharan Africa. High remittance costs, regulatory barriers, currency exchange issues, and lack of reliable data have all hindered the flow of these critical financial lifelines. However, fintech startups such as LemFi, among others, are working to revolutionize the remittance landscape and provide a more seamless experience for Africans in the diaspora to send money back home to their loved ones, friends, or for business purposes.

LemFi, founded in 2020 and headquartered in the UK, has set out to tackle the inefficiencies that have plagued the US$90 billion (approx. UGX33.2 trillion) African diaspora remittance market.

The startup initially launched its mobile remittance services in Canada —and later expanded to the UK and US. These are a major hub for African immigrants who travel to work, study, or reside permanently. One prominent problem they face is they feel worried and overwhelmed by the banking systems of their new homes. And sending money back home is a part of where they struggle. In particular, sending money back to their home countries is the problem LemFi is solving.

LemFi allows immigrants in the UK, US, and Canada to seamlessly send money to twenty (20) countries including nine (9) African countries —i.e. Benin, Cote d’Ivoire, Ghana, Kenya, Nigeria, Rwanda, Senegal, Tanzania, and Uganda.

A user can onboard with LemFi and use its multi-currency offering to send, receive, hold, convert, and save in the currencies of both their country of origin and country of residence.

How does LemFi work?

  • Download the LemFi app on your Android or iPhone mobile device and sign up.
  • Verify your identity and add money to your LemFi account by topping up via your card or bank account.
  • Choose your destination country and currency.
  • Enter your recipient’s details and approve the payment instructions.
Cashback for Ugandans in diaspora sending money back home using LemFi.
Cashback for Ugandans in diaspora sending money back home using LemFi.

Ugandans in the UK, US, and Canada can use the referral code MBU to get a cashback of £15 or $30 the first time they send £100, $100, or more.

One of LemFi’s key features is its focus on providing zero-fee international money transfers. This directly addresses the high remittance costs that have long been an issue in the industry, with the average cost of sending money to Africa hovering around 9% — three times the UN’s Sustainable Development Goal target of 3%.

LemFi’s ambitions extend beyond just lowering costs. The startup has also taken steps to navigate the complex regulatory landscape that has posed challenges for many remittance providers.

Beyond its core remittance services, LemFi is also diversifying its product offerings to better serve the needs of the global diaspora community. The company now allows users to open multi-currency wallets, including local currencies like the Ugandan Shilling, to facilitate seamless cross-border payments and address currency exchange challenges.

LemFi’s ambitious expansion plans extend beyond Africa as well. The startup is now setting its sights on the Asian diaspora market, which receives two to five times more in remittances than some of the big markets here in Africa.

With over 250 employees across ten countries and close to USD$50 million in funding raised to date, LemFi is well-positioned to continue its rapid growth and solidify its position as the fintech of choice for the global diaspora community.

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Joan Banura

Joan Banura is an aspiring journalist with a passion for all things tech. She is committed to providing insightful and thought-provoking content that keeps our readers informed and engaged.

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