Cross-border payment market in Asia receives expansion from financial company, Afriex
Afriex Expands into Asia's Top Remittance Markets
Afriex, a money transfer startup based in Lagos and San Francisco, has made a significant stride by expanding its services into China, India, and Pakistan - the three largest remittance markets in Asia. This move aligns with the global surge in cross-border payments, where these countries are among the top five recipients of remittances worldwide.
Founded in 2019 by Tope Alabi and John Obirije, Afriex has built a multi-currency payment infrastructure that settles transactions in real time. The startup aims to empower African merchants and diaspora communities involved in trade and family remittances by offering fast, low-cost, real-time money transfers between Africa and these countries.
The expansion allows users to send and receive money in local currencies between Africa and other regions, bypassing traditional payment rails like SWIFT. Afriex's offering is targeted at African traders and global diaspora populations who import goods or support families across India, China, and Pakistan.
However, Afriex faces challenges in these markets, especially in China. Regulatory hurdles, complex documentation processes, name verification difficulties, and language barriers are some of the key issues. Everything related to remittances in China is written in Mandarin and needs to be translated. Moreover, interoperability problems arise due to multiple businesses or bank accounts sharing the same or similar names, complicating correct recipient identification.
Despite these challenges, Afriex is optimistic it will enable instant payments to China by the end of 2025. The startup is planning another fundraising push, possibly early next year, after raising $1.2 million in seed funding in 2020 and a $10 million Series A round in 2022 at a $60 million valuation.
Meanwhile, other players in the remittance industry are also making moves. For instance, Flutterwave expanded into India in 2023 with a partnership with a local bank, and remittance startup LemFi raised $53 million in early 2025 to accelerate its expansion into Asia and Europe.
The Asia-Pacific region accounted for about 26% of the global $190 trillion in cross-border transactions in 2024. With Afriex's expansion, the startup is poised to make a significant impact in this region, offering instant transfers to India and Pakistan, with near-instant transfers anticipated soon for China.
Afriex adjusts its exchange rates to match the market and the reality. The startup waives transaction fees on transfers above $10 and earns revenue from foreign exchange spreads. In 2023, India received $120 billion in remittances, followed by China with $50 billion and Pakistan with $27 billion.
As Afriex continues to expand and navigate the complexities of the Asian remittance market, it will be interesting to see how it shapes the landscape of cross-border payments in the region.
[1] Afriex raises $10 million Series A to expand remittance services in Africa and Asia
[2] Afriex targets Asian remittance market with expansion plans
[3] Afriex expands into China, India, and Pakistan
- To bolster its presence in Asia, Afriex has secured $10 million in Series A funding, with the intention to further advance its fintech-based mobile payment services, aimed at facilitating fast, low-cost, real-time cross-border payments between Africa and Asia, particularly India, China, and Pakistan.
- With the aim of capitalizing on the growing demand for instant remittance solutions in the Asian market, Afriex, a money transfer startup, is planning to utilize its recently raised funds to invest in technology, addressing challenges such as language barriers and regulatory hurdles, in a bid to enable instant payments to China by the end of 2025.
