U.K. online money transfer company, World Remit, is buying Africa-focused, app-based remittance firm Sendwave. The combined company will be valued at more than $1.5b. WorldRemit and Sendwave have increased their combined revenues by more than 50% to $280m in the 12 months ending in June compared with a year earlier, as their customers conducted about $7.5b in transfers, the companies said.
WorldRemit Chief Executive Officer Breon Corcoran said the company is betting that the pandemic-fueled shift to digital banking will become permanent. “What we saw immediately after lockdown orders is a real acceleration toward digital,” with the rate of new account activations more than doubling this year, he said in an interview. “This is a fast-growing part of the broader payments space and increasingly our businesses will be viewed as more akin to Venmo or Paypal,” he said.