SendSprint, by a former Flutterwave exec, hits the market with a $5 flat fee for all international money transfers

SendSprint, a money transfer startup based in the UK but with operations in the US and Nigeria, launched today with the unique selling point of $5 flat fee for all transfers.

In the first 18 months, the fintech will target 300,000 of the 1.7 million Africans in the UK, and then expand into the US and Canada. It is entering a remittance market dominated by industry veterans Western Union and MoneyGram, as well as relatively new fintechs like Zepz (formerly WorldRemit), Remitly and Wise.

However, it is its flat rate value proposition for all transactions that could give it an edge over its competitors, all of which apply a sliding scale, which often increases dramatically with the payment method selected by the sender, reaching plus $10 to send $200 by some providers.

With three initial destination countries - Kenya, Nigeria and South Africa - SendSprint is partnering with Africa's most valuable startup, Flutterwave, which already supports cross-border transfers to 34 out of 54 mainland countries. The partnership will help SendSprint quickly comply with regulations in its countries of operation.

“The UK launch represents an important milestone for SendSprint as we seek to grow and connect people around the world to their homes in Africa. from our team for both product and customer service,” SendSprint Founder and CEO Damisi Busari said in a statement shared with TechCrunch.

Mrs. Busari, a former Flutterwave executive, says she founded SendSprint to connect the African diaspora "to loved ones back home by enabling fast, simple, and hassle-free international transfers."

Its product goes one step further by integrating a gift card service, Sprint Connect, which operates through partnerships with over 3,000 retailers in beneficiary countries, including Africa's largest supermarket Shoprite, commerce online Jumia, hospitals and pharmacies.

The donation service was guided by research into how remittances to Africa are commonly used. Last year, sub-Saharan Africa received $49 billion in personal remittances, according to the World Bank. Most remittances - over 75% - are used for subsistence through the purchase of basic necessities such as food, medicine and school fees.

"We understand the connection people have to their home country and the importance of sending money and gifts home to support loved ones...Our service recognizes and reflects this," said Busari.

"We are ambitious in our growth objectives and aim for 10% market share in each of the markets entered."

Flutterwave, which provides the infrastructure to process SendSprint payments, described the early start as timely.