How does Grey Finance make money?

Grey.co operates on a transaction-based model while also utilizing commission-based approaches.

**Disclaimer:** This is a general exploration of business models commonly used by fintech companies like Grey Finance. It does not represent Grey Finance’s proprietary strategies or offer financial advice. Details about Grey’s business model are not publicly available. However, we can infer the frameworks they might use by examining their services and offerings. This analysis is based on publicly available information and industry trends and should not be considered complete or definitive.

If you’re hearing of Grey Finance for the first time, read this guide on everything you need to know to get started with Grey Finance.

Now that you have a general idea of what Grey.co’s product is all about, let’s take a quick look at how the company has evolved over time.

Company Profile

Here’s a closer look at the company:

Name	Grey Finance
Website	www.grey.co
Founding date	July 2021
Founder(s)	Idorenyin Obong and Femi Aghedo
Employees	Approximately 50
Headquarters	United States
Industry	Finance Services
Business Type	International money transfer, USD banking
Key Services	Foreign accounts, local currency payouts, virtual cards
Estimated Valuation	$2 billion
Competitors	Cleva, SendSprint, Geegpay
Contact email	hello@grey.co

Grey’s Journey Since 2020

Idorenyin Obong and Femi Aghedo founded Grey.co in 2020 to simplify international payments for remote workers and digital nomads in Africa. Initially launched as Aboki Africa, the platform set out to tackle the challenges of traditional banking systems, such as high exchange rates and hidden fees. By 2021, users could open virtual accounts to receive payments locally, but some limitations—like the absence of ACH support—remained.

In August 2021, Grey began working on a rebrand to reflect its growing ambitions. The transition to Grey was officially announced in November 2022, marking a significant shift. It wasn’t just a name change; Grey updated its logo, revamped its website, and rebranded its social media handles to Grey Finance on Instagram and Twitter. The company shared that the new identity was designed to convey stability and neutrality while also emphasizing the platform’s mission of enabling Africans to access international payments seamlessly.

The rebrand coincided with major developments, such as introducing foreign accounts, ACH services, and an expanded product line. This period also saw Grey raise $2 million in funding, which facilitated its expansion into Kenya and East Africa and allowed partnerships with companies like Cellulant and Moringa.

Grey’s diversification didn’t stop there. In early 2024, the company launched its GiftCards service, which continues to grow, offering users more options for sending and receiving value across borders.

Today, Grey boasts a 4.7-star app rating and a team of over 50 employees in six countries.

Possible business model for Grey.co

It appears they use a multifaceted business model that combines transaction-based fees, a marketplace for third-party providers, and commission-based earnings. Here’s how these components might work:

1. Transaction-based Model

This seems to be Grey.co’s primary revenue driver, with fees collected for various services:

• International Money Transfers

Grey undoubtedly charges a fee for each cross-border payment. This could be a flat fee or a percentage of the total amount sent. For example, they might charge a flat fee of $3 per transfer or a 1% fee on the total transaction value.

• Deposits

Small fees for deposits can also create a steady stream of revenue when it adds up over time and depending on the frequency.

• Card Creation

Grey charges a $4 one-time fee for creating a virtual card. If a card is cancelled due to insufficient funds, users might have to pay again for a replacement, potentially generating recurring revenue.

2. Commission-based Model

Grey also acts as a marketplace, connecting users with other companies for things like gift cards, airtime, and bill payments.

• Gift Cards

Grey partners with gift card providers, allowing users to buy gift cards from popular brands right on their platform. These providers obviously would pay Grey a fee for access to their user base.

• Airtime and Bill Payments

Grey makes it easy for users to top up their airtime or pay bills through their platform. They probably earn a commission from the service providers for each transaction.

Why it works:

• Accessibility: Grey focuses on providing financial services to underserved communities, particularly in Africa, fostering customer loyalty and tapping into a growing market.
• Diversification: Grey’s revenue model is diversified, with income generated from transaction fees, commissions, and potentially monthly fees for foreign currency accounts. This diversification helps mitigate risk and ensures multiple revenue streams.
• Scalability: The platform is designed to be scalable, allowing them to expand their services and user base efficiently. This scalability can lead to increased revenue and market share.

In conclusion

Grey.co is doing some pretty cool things in the fintech world, and they’re set up for some serious growth.

They really get what their customers need, and they keep making their platform better and better.

So, even though we don’t know exactly how much they make on each transaction, it’s obvious that their different ways of bringing in money are working for them.

Definitely keep an eye on Grey.co!