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Pesa Launched Australia-to-Nigeria Money Transfer Service

Financial services operators can now compete on remittance speeds by leveraging local liquidity pools to bypass traditional intermediaries.

Updated on Oct. 6, 2026 in Financial Services

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Pesa has launched a new remittance service connecting Australia and Nigeria, aiming to lower transaction costs for the diaspora by using local liquidity pools. AI Illustration. Upload story photo >

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Pesa has introduced a new dual-directional money transfer service connecting Australia and Nigeria. The platform targets the Nigerian diaspora in Australia by focusing on reducing settlement times and removing middleman costs.

Why it matters

By holding local liquidity in destination markets, Pesa aims to capture a share of Australia’s $25 billion annual remittance market. This strategy challenges traditional providers by targeting the high costs currently associated with sending money to Sub-Saharan Africa.

Total remittances from Australia reached $25 billion in 2024, significantly higher than the 8.37% average fee currently charged for transfers to Sub-Saharan Africa. The service is designed to serve a population of over 12,000 Nigerian-born residents living in Australia.

The players

Pesa

A cross-border financial technology firm that provides money-transfer services by holding localized liquidity in destination markets.

Australian Transaction Reports and Analysis Centre

The Australian government agency responsible for the monitoring and regulation of financial transactions to prevent money laundering and terrorism financing.

The details

Pesa enables users to initiate transfers directly from Australian bank accounts, utilizing local liquidity reserves in Nigeria to ensure immediate payouts. By functioning as the intermediary, the firm generates revenue through foreign exchange spreads rather than conventional transaction fees. The firm operates in Australia under authorization from the Australian Transaction Reports and Analysis Centre.

Timeline

  1. 2021: Pesa was founded as PesaPeer.

  2. 2021: Australian Census recorded over 12,000 Nigeria-born residents.

  3. 2023: Company rebranded from PesaPeer to Pesa.

  4. Q2 2024: Average cost of remittances to Sub-Saharan Africa reached 8.37%.

  5. 2024: Australia sent $25 billion in remittances abroad.

Market Landscape

Pesa's operations in Australia are strictly governed by the Australian Transaction Reports and Analysis Centre regulatory framework. This entry signals a broader shift toward fintech firms using proprietary liquidity to bypass traditional banking corridors.

Operators in the remittance space should monitor whether Pesa's liquidity-based model effectively undercuts current market average fees of 8.37%. Review your current settlement speed and middleman cost structures to determine if localized liquidity pools are a viable competitive alternative.

The takeaway

The entry of Pesa highlights a trend of firms using direct liquidity to capture remittance volume from traditionally expensive corridors. Monitor your foreign exchange spread margins against new entrants who leverage direct settlement to attract diaspora customer bases.

Further reading

For more on the regulatory environment governing payment platforms, see the Financial Services section.

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Is now a good time to switch to a digital fintech app for your international transfers?