Grey IMTO licence approved by CBN, opening cross‑border payments

Grey has secured a licence from the Central Bank of Nigeria to operate as an International Money Transfer Operator, a move that officially grants the Y Combinator‑backed payments firm the right to process inbound transfers under the newly issued 2024 IMTO framework. The approval covers person‑to‑person, business‑to‑person and business‑to‑business flows, meaning the company can now move funds from overseas senders into Nigeria and settle them in naira. Grey said the licence will allow it to serve a wide range of customers, from families receiving remittances to professionals paid by foreign employers and local firms paid by international clients.

The regulatory nod arrives at a time when Nigeria’s remittance market is already crowded but still lucrative, with the World Bank reporting personal inflows of about $22.8 billion in 2025. More than one hundred operators currently hold CBN authorisation, including long‑standing names such as Western Union, MoneyGram and Remitly, as well as home‑grown fintechs like LemFi, Flutterwave and Paga Remit. Grey joins this group, but its recent launch of Paycheck, a product that lets workers earning in foreign currencies set aside income in dedicated salary accounts, may give it a distinctive edge in attracting high‑value users.

Grey’s chief executive highlighted that the licence not only legitimises the company’s cross‑border activities but also opens the door to building direct payment corridors with partner banks abroad. “Having the IMTO licence means we can move money more efficiently and at lower cost for our customers,” the executive told reporters. The firm expects that the ability to settle inbound transfers in naira will reduce conversion friction and improve the speed of payouts, a benefit that could resonate strongly with Nigerians who rely on timely remittances to meet household expenses.

While the approval is a milestone for Grey, it also show the competitive pressures facing fintech players in the sector. Earlier this year, Moniepoint announced the shutdown of its MonieWorld service, citing difficulties in achieving profitability despite a growing market. Industry observers note that the high operating costs of maintaining compliance, coupled with the thin margins typical of remittance services, demand innovative business models and strong capital backing. Grey’s recent fundraising round and its Y Combinator pedigree may provide the financial cushion needed to deal with these challenges.

The Central Bank of Nigeria’s 2024 IMTO guidelines were designed to bring greater transparency and consumer protection to the remittance space, requiring licensed operators to meet stringent anti‑money‑laundering standards and to maintain adequate capital reserves. By complying with these rules, Grey positions itself as a trustworthy conduit for overseas funds, an attribute that regulators and customers alike value in an industry often plagued by fraud concerns. The CBN has indicated that continued oversight will focus on service reliability and the safeguarding of users’ deposits.

From a broader perspective, the expansion of licensed IMTOs aligns with Nigeria’s economic priorities of attracting foreign exchange and supporting the diaspora’s contribution to national development. Remittances remain a vital source of hard currency, and facilitating smoother inbound flows can help bolster foreign‑exchange reserves while also providing households with additional purchasing power. Analysts suggest that as more fintechs secure similar licences, the market could see increased competition that drives down fees and improves service quality for end‑users.

Grey’s entry into the regulated market also dovetails with its recent product rollout, Paycheck, which debuted in late October. The service allows professionals earning abroad to earmark portions of their salary for future use, effectively creating a digital savings mechanism tied to their income streams. By integrating Paycheck with its IMTO capabilities, Grey aims to offer a seamless experience from receipt of funds to allocation for expenses or investment, a proposition that could attract a tech‑savvy segment of the Nigerian workforce.

Looking ahead, Grey plans to leverage its licence to expand its network of partner banks and payment hubs across key remittance corridors, including the United Kingdom, the United States and the Gulf states. The firm has not disclosed specific timelines for these expansions, but its leadership indicated that the next few months will focus on scaling operational capacity and refining compliance processes. As the fintech landscape continues to evolve, Grey’s success will hinge on its ability to convert regulatory approval into tangible market share while delivering cost‑effective solutions to a diverse user base.