A strategic acquisition by London-based LemFi, a startup providing international payment services, of Pillar, a UK-based fintech company that focuses on granting immigrants access to credit, would revolutionize financial services for immigrants.
One of the most enduring obstacles to financial inclusion for immigrant populations in the UK will be addressed by LemFi’s introduction of specialised credit cards as a result of this acquisition.
Pillar raised £13 million ($16.9 million) in pre-seed money in 2022 to create a platform that would allow immigrants to obtain credit products upon their arrival in a new nation.
As part of the transaction, LemFi will get this technology, making it the first significant remittance platform to provide credit as a key product.
Ashutosh Bhatt and Adam Lewis, co-founders of Pillar and Revolut graduates, will also join the LemFi team as part of the agreement, which has previously been approved by the FCA.
From dismantling financial obstacles, the purchase occurs at a time when establishing credit histories and obtaining financial services are extremely difficult for immigrants in the UK.
Only one out of ten immigrants, according to study, think that the current economic situation has made it easier to obtain loans. However, banking exclusion reports claim that 13% of migrants are excluded, compared to just 3% of the UK population as a whole.
This quote from LemFi’s website encapsulates the company’s mission: “We are reshaping the future of how immigrants move their money globally.” In 2022, net migration topped 700,000 in the UK alone. The company’s goal to assist the world’s expanding immigrant population is highlighted in the statement.
The problem of “Credit Invisible” after moving to a new country is something that many immigrants have to deal with.
Their credit history does not follow them into their new nation, regardless of their past or potential financial profile.
About 5 million “credit invisible” people in the UK have difficulty obtaining traditional financial services. Due to the particular difficulties they encounter, immigrants, particularly those from emerging economies around the world, bear the price of unfair access:
- Absence of UK credit history at the time of arrival.
- Credit histories from their own nations are not widely recognized.
- problems with immigration-related documentation.
- Lack of knowledge about the UK financial system and language obstacles.
- This is similar to Ashutosh’s experience after relocating to the UK.
“All of the regular [financial] goods I had in India were unavailable to me. Even after coming to Barclays and getting a decent job, I was unable to obtain an iPhone!
Although there have been minor advancements, the fundamental issue still exists.
“We need fair access to finance for everyone. Immigrants are always dealt a terrible hand, especially if they are from emerging countries. We still can’t give someone from another country a bank account or credit card while the world is busily creating an interplanetary life!
“With Pillar, LemFi will expand its reach by 10X and create truly global access to credit,” he says in closing.
As far as Future of Full-Stack Financial Services is concerned, the acquisition is a logical step in LemFi’s expansion plan.
“Building a full-stack financial service for immigrants worldwide has long been our vision,” says Ridwan Olalere, co-founder and CEO of LemFi. In this journey, credit represents the next frontier for us. The fact that Adam and Ash have agreed to work with us to create it makes Rian and I especially happy.
“With this acquisition, we plan to offer Credit Cards to customers, starting with the United Kingdom,” Ridwan adds. “With LemFi Credit, we already provide our existing customers the ability to grow their credit right within the LemFi app.”
Over 8,000 people have signed up for private beta testing of the Lemfi Credit program within six weeks of its inception. It has continued to grow at an average rate of 18% per week. Customers’ credit profiles determine how much they can receive—up to £300, £700, or £1000. Customers receive a Virtual Card to use for online purchases; for convenience, they can link the card to their Google Pay or Apple Pay wallets.
“Customers sending money to more than 30 countries in Asia, Africa, and Latin America already choose LemFi as their preferred remittance provider. In order to grow LemFi into a fintech behemoth, we extend an invitation to our clients and partners to join us in expanding our current financial service offerings. Finally, Ridwan says.
The Potential Game-Changing Effect of LemFi’s Credit Cards in the UK, is that, there is a significant market opportunity for financial services targeted at immigrants because net migration is still increasing after the pandemic. According to industry analysts, closing the financial inclusion gap for immigrants might benefit the UK economy as a whole and the people who obtain fair credit by generating billions of dollars in economic value.
Pillar’s technology will be utilized by the upcoming LemFi credit cards for immigrants in order to:
Acknowledge foreign credit histories: Permitting foreigners to “import” their credit scores from their native nations.
Offer another method of evaluating credit: assessing creditworthiness using non-traditional data sources.
Provide progressive credit development, which starts with limited-edition or secured products and expands as the customer’s needs change.
Integrate with remittance services by fusing credit development with Lemfi’s primary cross-border payment features.
The move could be a big step toward fair access to high-quality financial services and possibilities for the millions of immigrants in the UK who are having a hard time establishing credit records.
Over 2 million users in the US, UK, Canada, and Europe have benefited from LemFi’s service since its inception. LemFi raised $53 million in Series B fundraising in January 2025, increasing its total capital to over US$86 million. Y-Combinator, Highland Europe, LeftLane Capital, and Endeavor Capital were among the top investors.
For more information about LemFi, go visit www.lemfi.com.
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