LemFi, a London-based international payment services startup, has announced its strategic acquisition of Pillar, a UK-based fintech company dedicated to enhancing credit access for immigrants. This pivotal move is set to transform financial services for immigrant communities, addressing a significant barrier to financial inclusion in the United Kingdom.
The acquisition will enable LemFi to launch specialized credit cards tailored specifically for immigrants. This initiative directly tackles the persistent challenge many newcomers face in establishing credit histories and accessing essential financial products upon relocating to a new country.
Ridwan Olalere, LemFi co-founder and CEO, says, “We have long stated our vision of building a full-stack financial service for immigrants everywhere. Credit marks the next frontier for us in this journey. Rian and I are particularly pleased that Adam and Ash have agreed to join us in building it.”
“Through LemFi Credit, we already provide our existing customers with the ability to grow their credit right within the LemFi app”, Ridwan continues “With this acquisition, we plan to offer Credit Cards to customers, starting with the United Kingdom.”
Pillar, prior to the acquisition, had successfully raised £13 million in pre-seed funding. This capital was utilized to develop a robust platform designed to help immigrants access various credit products as they settled into their new environments. LemFi will now inherit this advanced technology as part of the acquisition, integrating it into its existing services to create a more comprehensive financial ecosystem for its users.
Within six weeks of launching, the Lemfi Credit service had over 8,000 users in private beta testing. It has maintained an 18% average week-on-week growth. Customers can get up to £300, £700, or £1000 based on their credit profile. They get a Virtual Card to spend online; customers can add the card to their Apple Pay or Google Pay wallets for ease of use.
“LemFi is already the go-to remittance service for customers sending money to over 30 countries in Asia, Africa and Latin America. We invite our customers and partners to grow with us as we build on our existing financial service offerings to scale LemFi into a fintech giant. ” Ridwan concludes.
The deal has received formal approval from the Financial Conduct Authority (FCA), ensuring regulatory compliance. Furthermore, Pillar’s co-founders will join the LemFi team, bringing their expertise and vision to the expanded entity. This strategic integration of talent and technology is expected to accelerate LemFi’s mission to provide equitable and accessible financial services to the global immigrant population.
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