By using a fee-for-a-service model as the primary approach and layering in commissions from its marketplace, SendSprint appears to utilize diversified revenue streams.
Disclaimer: This is a general exploration of business models commonly used by fintech companies like SendSprint. It does not represent SendSprint’s proprietary strategies or offer financial advice. Details about SendSprint’s business model are not publicly available. However, by examining their services and offerings, we can infer the frameworks they might use. This analysis is based on publicly available information and industry trends and should not be considered complete or definitive.
What has changed since 2021?
SendSprint has been on a mission to make life easier for Africans living abroad and businesses operating within Africa. One of their first moves was to team up with Flutterwave, a key provider in African payments, working to deliver consistent and dependable service throughout the continent.
Fast forward to July 2023, SendSprint decided it was time for a refresh. They gave their brand a new look, with a logo and colors that reflect their commitment to connecting people with their families and communities back home. At the same time, they made their website much easier to use, added extra layers of protection and also made sending money more convenient by letting people schedule regular payments and pay in different ways, like using Google Pay or Apple Pay.
As part of this update, they started a rewards program where people can earn bonuses and win free trips back home! And because SendSprint knows that sometimes sending gifts is just as important as sending money, they created Sprint Connect. Now, people can send gift cards to their loved ones so they can buy things like groceries and medicine from popular stores.
Then, in August 2024, SendSprint made a big move by acquiring Nobel Financial Inc, a US-based company that also helps people send money and gifts to loved ones overseas. This acquisition allowed SendSprint to expand its services to even more people in the United States, one of their primary target audiences.
SendSprint keeps things simple and affordable by charging a flat fee for transfers, which is often cheaper than what other money transfer companies offer. With all these in view, SendSprint has become a popular choice for Africans abroad while making a real difference in people’s lives.
If you’re using SendSprint for the first time, you might want to start (here).
Company Profile
Get to know SendSprint better:
| Name | SendSprint |
|---|---|
| Website | https://sendsprint.com |
| Founding date | 2021 |
| Founder(s) | Oluwadamisi Busari |
| Key people | Damisi Busari, Nancy Udeh, Joba Adejumo etc. |
| Employees | Approximately 10 |
| Headquarters | London and Lagos |
| Industry | Finance Services |
| Business Type | International money transfer for Africans, Voucher gifting |
| Key Services | Remittances, Inter-African payments, Local Currency Payouts, |
| Estimated Valuation | $5 million - $20 million |
| Competitors | Cleva, Nala, Grey Finance |
| Contact email | hi@sendsprint.com |
Possible business model for SendSprint
SendSprint caters to specific demographics—diaspora communities, businesses, freelancers, and developers—offering flexibility, security, and localized services.
Let’s break down a potential framework the business could be utilizing:
1. Fee-for-Service Model
This is likely a core component of SendSprint’s revenue generation. They charge fees for various services, including:
- International Money Transfers: SendSprint charges a flat $5 fee for international money transfers. While this fee may seem significant at first glance, it’s important to consider the transfer amount and destination. For larger transfers, this fee could be competitive compared to services like Chipper or Grey, especially when factoring in exchange rates and other hidden costs.
- Remittance-as-a-Service (RaaS): This is a unique B2B service offering where SendSprint provides the infrastructure and technology for other businesses to offer remittance services. This would allow businesses to bypass the complexities and costs of building their own platforms from scratch. Instead, they can leverage SendSprint’s existing technology, compliance expertise, and network, significantly reducing development time and costs. SendSprint likely generates revenue from this service through a combination of setup fees, monthly fees, or transaction-based fees, depending on the specific agreement with each business.
2. Combination of Marketplace and Commission-Based Model
SendSprint’s gift card business, Sprint Connect, operates on a combined marketplace and commission-based model.
Marketplace: SendSprint acts as a platform, or marketplace, connecting customers with popular brands like Shoprite and Jumia. This strategic move allows them to expand their offerings beyond just money transfers and tap into a different customer need – gifting. By partnering with local businesses in recipient countries, they ensure a gifting experience that is seamless and relevant, thereby increasing customer satisfaction and loyalty.
Commission-Based: For each gift card sold through their platform, SendSprint likely earns a commission. This adds another revenue stream to their business model and leverages their existing user base for increased sales, creating a win-win situation for both SendSprint and its partners.
Additional Considerations:
Subscription-Based Model
It’s possible that SendSprint offers tiered services or premium features for their RaaS clients through a subscription model. This could include advanced reporting and analytics, dedicated customer support, higher transaction limits, or customized integrations tailored to your specific business needs.
Data Monetization
While not explicitly stated, SendSprint might also leverage anonymized and aggregated transaction data for market research or analysis. This data could be valuable to other businesses, financial institutions, or researchers interested in understanding cross-border payment trends, potentially generating additional revenue for SendSprint while adhering to data privacy regulations.
Why It Works:
Customer-Centric Solutions: Offering both financial transactions and in-kind gifting strengthens customer loyalty.
Scalability: APIs and compliance services attract businesses looking to scale quickly in emerging markets.
Revenue Diversity: Balancing transaction fees, commissions, and SaaS subscriptions mitigates risk.
In conclusion
SendSprint’s efforts since launch seem to be paying off in the world of cross-border payments, especially for those with ties to Africa. If you’re considering using the data in this article, it’s important to remember that this analysis is based on public information. Be sure to do your own research and compare the offerings above with other payment providers to find the best fit for your needs.
