Redtech Plans Digital Payments Corridor Between Kenya and Nigeria

Cross-border transactions between African countries can be complicated and costly, often involving financial institutions outside the continent. Redtech, a Nigerian payments technology company, aims to change this by building a digital payments bridge connecting Kenya and Nigeria, with ambitions to extend the infrastructure across Africa. This bridge will facilitate easier transactions for individuals and businesses trading across African markets.

The proposed digital payments corridor will link Nigeria's 200 million people with Kenya's 58 million, open to individuals and small businesses. Redtech's CEO, Emmanuel Ojo, described this as creating a common digital payment highway between African markets, eliminating the need for businesses to navigate different systems when crossing borders. This will enable companies to operate in multiple African markets without starting from scratch in each one.

A significant challenge in cross-border transactions is the lack of standardization in payment systems. According to Ojo, payment systems in different countries use different technical standards, causing transactions to fail even if both countries have working digital payments. This issue is similar to two railways built with different track widths, requiring cargo to be unloaded and reloaded at the border, adding time and cost.

Settlement times and onboarding processes also pose challenges. Some markets settle transactions within 24 hours, while others take three or four days. Transfers between African countries can pass through the US or Europe before returning to the continent, stretching payment processing to up to three days. Onboarding requires businesses to register, get verified, and pass due diligence checks with each new payment provider, a process Redtech aims to simplify.

Redtech is leveraging its existing payment processing experience, having processed over $20 billion worth of transactions in 2025. The company is partnering with United Bank for Africa to access 20 African markets and plans to establish its own legal entities and pursue licenses country by country. Redtech targets 29 African markets, with acquisitions and a potential $100 million raise to fund its expansion.

In Kenya, Redtech will focus on payment and collection tools for micro, small, and medium businesses, entering through an underserved segment rather than challenging the dominant player, M-Pesa. The company recognizes the importance of respecting consumer preferences in each market, adopting a tailored approach rather than a copy-and-paste strategy. Kenya's mobile money market is dominated by M-Pesa, with 89% of mobile money subscriptions.

Redtech plans to launch its first product in Kenya by Q1 2027, starting with a limited rollout through partners. The company has not yet disclosed its Kenyan partners or the status of its regulatory engagement with the Central Bank of Kenya. A successful corridor depends on agreements between banks, compatible systems, regulators' cooperation, and timely settlement, much of which lies beyond one company's control.

Key points

• Redtech aims to create a digital payments bridge between Kenya and Nigeria, simplifying cross-border transactions for individuals and businesses.
• The proposed corridor will link Nigeria's 200 million people with Kenya's 58 million, open to individuals and small businesses.
• Redtech processed over $20 billion worth of transactions in 2025 and targets 29 African markets with acquisitions and a potential $100 million raise.