Underserved international payment markets—particularly in Africa, parts of Asia, and emerging economies—present immense opportunity. Millions of freelancers, gig workers, small businesses, and cross-border merchants need reliable, fast, and cost-effective ways to send and receive money. However, traditional payment providers often fail these users due to high fees, slow settlements, or opaque processes.
For fintech developers and entrepreneurs, identifying the right revenue model is key to building sustainable businesses while meeting user needs. In this blog, we’ll explore which revenue strategies work best in underserved international payment markets and why.
Understanding the Dynamics of Underserved Payment Markets
Before we dive into revenue models, it’s important to understand the challenges these markets face:
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High Transaction Costs
International remittance fees and currency conversion rates are often prohibitively high for freelancers and small businesses. -
Limited Access to Banking Infrastructure
Many users rely on mobile money, informal banking channels, or cash-in/cash-out networks. -
Cross-Border Complexity
Regulatory requirements, foreign exchange restrictions, and settlement delays complicate international payments. -
Trust Deficits
Users are wary of fraud, delays, and hidden fees. -
Fragmented Market
Users may need multiple payment solutions to handle different currencies or regions.
Revenue models in these markets must account for affordability, transparency, scalability, and compliance.
1. Transaction-Based Revenue Models
How It Works
Platforms earn a percentage or flat fee on every transaction processed.
Why It Works
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Simple and directly aligned with user activity.
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Users understand the cost as a clear trade-off for service.
Key Considerations
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Keep fees competitive to encourage adoption.
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Offer transparent fee structures to build trust.
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Combine with alternative revenue streams to reduce overreliance on transaction fees.
Example Use Case
A cross-border freelancer platform charges 1–2% per transfer but ensures instant delivery and low currency conversion fees. Users are willing to pay because they save time and reduce risk compared to traditional bank transfers.
2. Freemium Models
How It Works
Basic services are free, while advanced features—such as multi-currency accounts, premium analytics, or faster processing—are offered for a subscription.
Why It Works
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Reduces the barrier to entry in price-sensitive markets.
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Allows users to experience the service before committing financially.
Key Considerations
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Identify which features users find valuable enough to pay for.
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Maintain high-quality free services to attract new users.
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Gradually introduce premium services without alienating free users.
Example Use Case
A mobile payment app provides free P2P transfers within the country but charges a small monthly subscription for cross-border payments or real-time settlement.
3. Subscription-Based Revenue Models
How It Works
Users pay a recurring fee for access to the platform or enhanced payment capabilities.
Why It Works
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Provides predictable revenue for scaling operations.
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Encourages user loyalty, especially for businesses or frequent freelancers.
Key Considerations
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Tiered subscriptions can serve both low-volume and high-volume users.
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Include value-added services such as analytics, integration with accounting software, or early settlement options.
Example Use Case
A gig platform charges businesses a monthly fee to manage payroll and payments to remote freelancers, providing dashboards, automated reporting, and preferential transaction fees.
4. FX Spread and Conversion Margins
How It Works
Platforms earn revenue by charging a small margin on currency conversions for cross-border payments.
Why It Works
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Natural revenue stream in international markets.
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Users prioritize convenience and speed over minimal FX margin.
Key Considerations
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Keep spreads competitive to avoid driving users to alternatives.
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Be transparent to maintain trust.
Example Use Case
A payment app allows users to send USD to Kenya in local currency, earning a small, visible margin while guaranteeing fast settlement.
5. Value-Added Services
How It Works
Revenue is generated through services beyond basic payment processing, such as:
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Fraud protection
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Compliance verification (KYC/AML)
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Accounting or bookkeeping integrations
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Financial education for freelancers
Why It Works
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Builds stickiness and differentiates the platform.
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Users are willing to pay for services that simplify compliance or save time.
Key Considerations
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Understand the most pressing pain points for users.
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Bundle services creatively to maximize adoption.
Example Use Case
A cross-border platform provides integrated tax reporting for freelancers, charging a small fee per report or monthly subscription.
6. Partnerships and Revenue Sharing
How It Works
Collaborate with banks, mobile money operators, or fintech providers, sharing revenue from transactions or services.
Why It Works
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Expands reach without requiring full infrastructure investment.
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Taps into existing customer bases and trust networks.
Key Considerations
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Ensure clear agreements on revenue splits.
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Maintain quality and user experience.
Example Use Case
A platform partners with a local mobile money operator, splitting fees for cross-border remittances while providing users a seamless experience.
7. Microtransaction and P2P Monetization
How It Works
Revenue is earned through small fees on peer-to-peer transfers, tipping, or social payments.
Why It Works
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Users are price-sensitive, so low fees per transaction encourage high-volume activity.
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Monetizes everyday use cases that can scale exponentially.
Key Considerations
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Avoid charging prohibitive fees on low-value transactions.
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Combine with other models (like premium subscriptions) for sustainability.
Example Use Case
A social payments app charges $0.10 per P2P transfer but supports thousands of transactions daily, generating substantial aggregate revenue.
Factors Influencing Model Selection
When choosing a revenue model, consider:
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Market Affordability
Ensure fees or subscription costs align with users’ earning potential. -
Transaction Volume
High-volume markets may support microtransaction models; low-volume may require subscriptions. -
Cross-Border Complexity
FX margins and compliance services can justify additional fees. -
User Trust
Transparency in fees and services is critical; hidden charges reduce adoption. -
Regulatory Environment
Models must comply with local financial regulations, licensing, and KYC/AML requirements.
Combining Revenue Streams
Many successful fintech platforms combine multiple models for resilience:
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Transaction fees + FX margins for everyday payments
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Freemium or subscription services for premium features
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Value-added services such as automated compliance and reporting
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Partnerships and revenue sharing to expand reach without heavy investment
This hybrid approach balances affordability, user trust, and platform sustainability.
Real-World Examples
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Paystack and Flutterwave: Use transaction fees combined with value-added business services.
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Wise (formerly TransferWise): Transparent FX margin combined with low transaction fees.
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Chipper Cash: Mix of microtransaction fees and premium cross-border services.
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Remitly: Subscription-based “Express” services for faster delivery with additional fees.
These examples demonstrate that flexible, user-centric revenue models drive adoption and retention in underserved markets.
Conclusion
Underserved international payment markets present immense opportunity, but monetization must be balanced with affordability, transparency, and trust. Developers and fintech startups can leverage:
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Transaction-based fees for predictable revenue
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Freemium or subscription models to attract and retain users
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FX margins and currency conversion fees for cross-border sustainability
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Value-added services to solve compliance and operational pain points
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Partnerships and P2P monetization to scale reach
By understanding user needs and market constraints, fintech platforms can build revenue models that serve both users and the business, creating sustainable growth in complex international markets.
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