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Customers Kick As Opay Increases Transaction Charges

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  • Customers Kick As Opay Increases Transaction Charges

Opay has increased its bank transfer charges from N10 to N45 and also introduced a 1% fee on subsequent transfers.

This means when users make transactions from their Opay wallets to regular bank accounts; the first transaction will attract N45, while the second transaction on the same day attracts 1%; for example, N50,000 will attract N500 (1%).

Opay had earlier raised its charges to 2% but reversed the rate, the same week, due to the criticism it received from its users, as they were not notified before the changes were made. Customers only found out when they tried to make transactions.

“We sincerely apologize for the inconvenience we caused you by our lack of notice on the 2% bank transfer fee. We understand that this was not communicated appropriately and sincerely apologize for this.

“We have now reviewed our bank transfer fees, and from 6 AM tomorrow, the fee for our bank transfers will be N45 for the first transaction of the day and 1% for subsequent ones,” Opay tweeted.

The Effect Of N45, 1% Charges

Transaction from one bank to another bank attracts N52.5, the reason why many people turned to Opay since it was charging N10 for its transactions.

However, with the new rate of N45 charges (an increase of N35) on bank transfer and the 1% fee on subsequent transfer, it appears Opay might soon lose some of its customers who are not happy as they will not be getting the benefit that attracted them.

The new policy may also affect other services on the app apart from the bank transfer, especially OWealth.

Owealth is an investment product on Opay that offers 10% interest annually on the amount the user invests. As a result of the new transaction charges, the users may lose part of their return when they try to transfer the money out of the app when it is mature.

Meanwhile, Opay has received an international money transfer license from the Central Bank of Nigeria (CBN), that will allow users to receive money directly into their OPay wallet from any bank.

Customers Reaction

After Opay took to its Twitter page to announce its decision to charge N45 and 1% on subsequent transactions, many of its users also shared their opinions.

A user on Twitter, Toluwase Omo Ogundele said, “So if I transfer 100k, you guys will charge me 1k? 200k=2k? Nobody will patronise you guys. Transfers on bank app to another bank is N52.5 and you expect somebody to come and use a service that charges exorbitantly? he queried.

Another user, Dauda Hammed Lekan who seems to be a victim of the 2% that was earlier deducted said: “Refund the overcharged customers first and let’s start after people must have heard the info. You don’t give apology on what you have done intentionally. It makes no sense to me. I have plans for my fund, you don’t just charge me without notice just like that.@SRunsewe please act.”

“I lost over #1200 transferring 62k to my account. They have lost my trust unless they agree to refund my money,” African Child said.

Onye Oraifite who is disappointed that Opay wasn’t transparent enough, said, “When I thought this platform will save me from the useless bank charges, obviously I’m wrong.”

These are just few among various reactions that trailed Opay’s move.

Why Opay Increased Its Transaction Charges

According to OPay’s Country Manager, Iniabasi Akpan, the company is hoping the move will lead to more financial activities within the Opay ecosystem.

“Peer-to-peer transactions do not attract any fees within the OPay app,” he told TechCabal.

“Evidently, with the new policy, users are encouraged to do more transfers and payments within the app,” he added.

Akpan also said that the “OWealth users should not be affected” by the new charges as it is developing its technology to “accommodate this change.”

He assured that the company is working on a “plan to resolve any issue affecting OWealth users.”

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Fund Raising

E-commerce Startup Sendbox Raises $1.8M to Digitise Deliveries for African SMEs

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Sendbox, the Nigeria-based e-commerce fulfilment platform for merchants in Africa, has announced the completion of a $1.8 million seed round from investors, including 4DX Ventures, Enza Capital, FJLabs and Golden Palm Investments.

With participation from Flexport and YC Combinator as part of its 2021 winter cohort, Sendbox’s total investment raised has now reached $2 million following a pre-seed round from Microtraction and 4DX Ventures in 2018.

Starting with logistics and fulfilment, Sendbox is building the operating system for e-commerce in Africa. Launched in 2018, the company provides affordable access to local and international delivery options for small-scale merchants selling on e-commerce and social media platforms. Accessible to iOS and Android users, via the web application, on Whatsapp, Facebook, Instagram and other e-commerce platforms, and through developer APIs, Sendbox is providing a single location to manage both local deliveries and international shipments to the EU, UK, US and Canada.

To date, over 10,000 Nigerian SMEs have sent 200,000 products through Sendbox, saving on average 30-40 percent per item by eliminating the need to work with separate logistics providers. Through its delivery management platform, which aggregates logistics providers and enables tracking, the company also offers a solution for merchants who lack the high volumes required to attract discounted delivery fees.

The next stage of the company’s growth will see a move towards financing & payments, followed by e-commerce & marketplace integrations across West Africa and further afield. According to the company, the new funding will be used to expand the company’s operations in other countries across West Africa, bolster the development of its product range, and hire new talent.

Commenting on Sendbox’s fundraise and growth ambitions, Emotu Balogun, CEO and Co-Founder of Sendbox said, “No matter where in the world customers are, we want African SMEs to be able to reach them.” He continues, “Deliveries in Lagos, Abuja, Port Harcourt and Ibadan have made up a large proportion of business for our domestic merchants. On top of that, affordable access to the UK, EU, US, and Canada has created an opportunity to sell products to hundreds of millions of previously unreachable buyers. With this fund, we aim to support more and more SMEs and help them grow both locally and internationally, scaling alongside them as we connect African merchants with a global community of consumers.”

“African e-commerce is accelerating faster than anybody could have imagined a decade ago, and it needs smart solutions to ensure that logistics and fulfilment capacity doesn’t lag behind,” said Walter Baddoo, Co-Founder and General Partner at 4DX Ventures. “Not only were we impressed by Sendbox’s 300 percent year-on-year growth since launch, but we’re seeing the market potential balloon with over 40 million Nigerian SMEs and a projected industry value for social and e-commerce reaching $45 billion on the continent by 2025.”

Prolific mobile penetration on the continent, the rise of social media and knock-on impacts from the COVID-19 pandemic have shifted additional momentum towards e-commerce and social commerce, doubling monthly revenues for Sendbox since March 2020.

Made in Africa products are now in higher demand across local and international markets. With 200 million Instagram users and 1 million Instagram businesses in Nigeria alone, Sendbox is well-positioned to serve this growing market and multiply its merchant count over the coming months.

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Fintech

Interswitch Unveils Whitepaper on Blockchain Technology Plans To Drive Growth of African Businesses

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Africa’s leading integrated digital payment and e-commerce company, Interswitch Group, has unveiled its whitepaper on blockchain technology titled “Blockchain Technology: The Future of Africa’s Digital Economy” to help drive the growth of African businesses.

The white paper document contains details on how businesses can leverage blockchain technology to transform their businesses and the prospects it portends for the future of Africa’s digital economy.

Blockchain technology is a digital ledger that stores transactions. Essentially, it is a digital system for recording transactions in multiple places at the same time thereby making it impossible to falsify the data stored on it.

Akeem Lawal, Managing Director, Transaction Switching and Payment Processing at Interswitch commented, “The whitepaper document was inspired by the need to demystify the ambiguity around blockchain technology for African businesses thereby driving digitization and socio-economic growth across African markets. We are passionate about empowering Africans and advancing the African payment landscape, and we are consistently identifying opportunities and exploring innovative ways to enable businesses to transform and scale.”

He revealed that the whitepaper document encapsulates the benefits of blockchain technology and how it will help strengthen businesses because of its efficiency, better security in keeping records, and safety.

He further said: “While the blockchain technology is a relatively new phenomenon in Nigeria and Africa, we are particularly excited about our partnership with Interstellar with whom we are developing a native blockchain infrastructure that is tailored to suit the African market. This initiative will deepen digital payment, lower the cost of local and cross border payment as well as champion the cause for localization of emerging technology”.

He urged everyone to read the whitepaper document because it addresses existing challenges in the Fintech sector and simplifies the use of blockchain technology in unraveling these challenges. Download the whitepaper here.

Blockchain technology is evolving globally and businesses are integrating blockchain technology into their business infrastructure.

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Technology

Zoom Retains Pandemic Gains and Doubles Half-Year Revenue to Nearly $2B

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Despite security concerns and reports of possibly problematic ties to Chinese authorities, Zoom Video Communications remained a major beneficiary of the changes brought by the COVID-19 pandemic. Last year, video conferencing apps saw an unprecedented surge in usage, with Zoom as one of the most popular options available. The impressive growth continued in 2021, driving the company’s revenues to all-time highs.

According to data presented by StockApps, Zoom Video Communications generated nearly $2bn in revenue in the first half of 2021, more than double compared to the same period a year ago.

Quarterly Revenue Surpassed $1 Billion for the First Time

Despite many workers returning to their offices once fully vaccinated, companies worldwide continue using a hybrid work model, which has proven effective in keeping the business going during the pandemic and became popular with workers who embraced the new freedom of working from anywhere.

This enormous shift has allowed Zoom Video Communications to hold on to its pandemic gains. The company’s financial report showed Zoom saw its revenue skyrocket throughout the fiscal year ended January 31, 2021.

After an impressive 169% YoY jump in the Q1 FY2021, revenue growth accelerated to 355%, 367% and 369% in the second, third, and fourth quarters of the year. Statistics show that in the twelve months ended January 31, Zoom’s revenue amounted to $2.65bn, up from $623 million the previous year. Moreover, the video conferencing company ended the year with a net profit of $671 million, up from just $22 million in fiscal 2020.

The impressive growth continued in the FY2022, with the company’s revenue surging to $956 million in the first quarter, showing a massive 191% increase year-over-year. In the next three months, Zoom hit a new benchmark, with its quarterly revenue rising to over $1 billion for the first time.

Revenues Rise While Market Cap Drops

Analyzed by geography, the Americas remain Zoom’s largest market, with a 67% revenue share in Q2 FY2022. Statistics show users from this region generated $681 million in revenue, up from $454 million in the same period a year ago. EMEA countries ranked second with $205 million in revenue and a 20% share. The APAC region follows, with $135 million in revenue, respectively.

However, while revenues continue rising, the company’s stock price has been hugely affected by security concerns and reports of possibly problematic ties to Chinese authorities. According to YCharts, the market cap of the video conferencing company hit $76bn last week, which is 53% less than its all-time high of $161.5bn in October 2020.

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