TerraPay Payment Services

Debt : March 2024

BIO has granted a USD 10 M loan to TerraPay, a global digital payment company.

Amount

$ 10,000,000.00

Type of investment

Debt

Development impacts

  • Private sector consolidation/innovation
  • Financial inclusion

Beneficiary locations

Asia: Bangladesh, India, Philippines, Vietnam
Sub-Saharan Africa: Cameroon, Côte d'Ivoire, Kenya, Senegal, Tanzania, Uganda

Investment field

Financial Institutions

Activity

K66.19 Other activities auxiliary to financial services, except insurance and pension funding

Organisation

TerraPay Payment Services

Domicile

Mauritius

Terrapay is a global digital payment company supporting transfer of international remittances instantly and at a low cost. Via its platform Terrapay acts as a payment infrastructure by facilitating transfer of very small value transfers (USD 300 on average) typically from migrant workers located in developed countries (senders) to their relatives in developing countries (receivers) who instantly receive the funds in their bank accounts or mobile wallets.

Instant money transfer from a sender to a receiver is made possible because Terrapay maintains funds within the receiving countries. Terrapay has to raise debt to pre-fund the transactions, so it can instantly pay the receiving partner. The BIO financing (USD 10 M out of a USD 75 M syndication led by IFC) will be used solely for this purpose.

Development impacts

  • Private sector consolidation/innovation

    Fostering the integration of service providers across international remittances and domestic channels, by enabling interoperability through the integration of data and financial flows facilitated by the platform.

    Promoting systemic changes in the international remittances market, by lowering barriers to entrants for new money transfer operators, promoting price reduction through competition and by enabling a lower-cost model. Supporting digitalization of banks and its interconnection with the digital ecosystem.

  • Financial inclusion

    Enabling electronic low-cost transfer of funds, thereby encouraging a greater share of formal remittance payments and strengthening the link to financial inclusion by enabling individuals to access a wide range of financial and non-financial services through their mobile wallets. In Sub-Saharan Africa, Terrapay transaction to mobile wallets are very small ($150 on average) and 35% of transactions are below $50 (with strong marginal utility)

E&S Impact

TerraPay will extend its exclusion list to match the one of EDFI, including the fossil fuels sectors.

Situation at the time of investment

Thanks to the involvement of previous Development Financial Institutions, TerraPay already has a sufficient capacity and detailed policies in place to manage its E&S risks, which are mainly related to data security and privacy. It has formalized a comprehensive list of HR policies. Also, its environmental footprint is mainly external since it uses third-party providers for its IT infrastructure.

Risk Category: C

View more of our investments in this region

Mutual trust bank

Financial Institutions

Mutual trust bank

15,000,000.00

  Bangladesh

  27/05/2024

  Debt

Geuther Vietnam

Enterprises

Geuther Vietnam

27,771.00

  Vietnam

  23/04/2024

  Subsidy

Gebana Burkina Faso

Enterprises

Gebana Burkina Faso

 6,906.00

  Burkina Faso

  15/04/2024

  Subsidy

EA Foods Ltd

Enterprises

EA Foods Ltd

3,200,000.00

  Tanzania

  09/04/2024

  Debt

Electrical Controls and Switchgear Ltd.

Enterprises

Electrical Controls and Switchgear Ltd.

14,180.00

  Uganda

  06/02/2024

  Subsidy

EVN Finance Joint Stock Company

Financial Institutions

EVN Finance Joint Stock Company

10,000,000.00

  Vietnam

  09/01/2024

  Debt

TowerCo of Africa

Infrastructure

TowerCo of Africa

12,000,000.00

  Uganda

  30/12/2023

  Debt

SIMA Commercial & Industrial Solar Green Bond

Investment Companies & Funds

SIMA Commercial & Industrial Solar Green Bond

10,000,000.00

  Kenya, Nigeria, South Africa

  29/12/2023

  Debt

ACEP Group

Financial Institutions

ACEP Group

 4,824.00

  Niger

  28/11/2023

  Subsidy