Payday founder, Favour Ori has just unveiled a new product of Payday called Cherry Finance.
Cherry Finance, a money transfer startup based in the US (with operations in Canada & Africa) has launched in private beta today with a unique selling point of $2 flat fee per transfer.
Cherry will target African immigrants in North America (US & Canada) and enable them to send money back home securely and affordably. The flat fee of $2 per transaction/transfer makes this service the cheapest in the market. Other players in the market like Sendwave, Wise, etc still charge up to 7% per transaction (and this varies by the payment method selected by the sender).
Sub-Saharan Africa received over $49 billion in personal remittances in 2021 according to the World Bank. Most of the remittances were used for the purchase of daily necessities like food, healthcare, tuition fee, etc.
For its pilot phase, Cherry will gradually roll out in the US starting this month. Users will be able to send to Nigeria, and soon Ghana, Kenya, and the rest of Africa.
Cherry customers will have access to several payment methods including Cards, Apple Pay, Google Pay, ACH, and Stablecoins.
In a statement, Favour Ori, founder of Cherry, said – there’s still a significant market share to capture and we’re coming for it. We’ve done this before with Payday and we will do it again.
In June 2021, Favour Ori Launched Payday – a Digital Neobank for African freelancers and remote workers. Payday issues USD, GBP, and EUR bank accounts with a Virtual Mastercard (for spending globally). Payday secured $2.2M (pre-seed) from global investors like Techstars, Ethos VC, Loftyinc Capital, Ingressive Capital, Magic fund, Gbenga Agboola (CEO of Flutterwave), etc. Payday currently has over 100,000 users (growing 40% Month on Month) and processing millions of dollars every month. In August 2022, Payday broke even. Now, they plan to accelerate growth.
Cherry is partnering with Africa’s highest-valued startup, Flutterwave, which already supports cross-border transfers to 34 of the continent’s 54 countries. The partnership will help Cherry quickly comply with local regulations in its countries of operation.
Cherry is live in private beta. You can request access to join here: https://usecherry.finance/