Fintech

Payourse, A Nigerian Blockchain Startup Raises $600K Pre-seed Fund To Expand Operations

Published

3 years ago

December 2, 2021

Payourse, a Nigerian-based blockchain startup has raised $600,000 pre-seed fund to hire more talents, expand operations into new markets and accelerate crypto adoption on the continent.

Investors who participated in the pre-seed funding are, Michael Ugwu, Flori Ventures, Voltron Capital, Allegory Capital, CELO Co-founders Marek Olszewski and Rene Reinsberg, Kola Aina, Ventures Platform; Angel Touch Holdings; and Oluwatobi Anisere.

Payourse was founded in 2019 by Bashir Aminu (CEO) and John Anisere (CTO) to accelerate access to crypto for Africans by providing tools that make it easier, faster and cheaper for businesses to build user-friendly crypto products.

The company had earlier raised some funds in 2020 from Oluwatobi Anisere and subsequently $100,000 each from Ugwu in March and Flori ventures in July 2021. The $600,000 pre-seed fundraised is the company’s first official fundraising.

In an interview with Techpoint, Aminu revealed he had dropped out of a five-year degree program from the Federal University of Technology, Minna in 2017 and had co-founded two startups with his friend Orewole whom he met at an online crypto platform, however, the two businesses failed.

He started his career as a graphic designer, got a job with an Australian company before moving to Busha as Design Lead where he met Anisere. He had worked in different capacities across the fintech space, from product designer at TeamApt, Design lead at Yellow Card Financial, product designer at Interswitch, and finally Head of Africa at Binance P2P.

Payourse, the parent company has three core functionalities that power its infrastructure: wallets, remittances and liquidity.

Talking about the conception of Coinprofile, a subsidiary of Payourse, he said the idea struck him while working as a product designer in Busha. He saw the need to build a simple platform that collects wallet addresses and generates shareable links, this idea was shared with his colleague Anisere who was working as a front-end engineer at Busha. Anisere welcomed the idea and the project ‘Coinprofile’ was launched in 2019.

Coinprofile was launched to bring a seamless transaction experience to crypto traders. Aminu noticed the tedious process traders encountered while sending digital assets from one wallet to another.

He said, “I used to be an OTC (over-the-counter) trader, so anytime someone wants to send me crypto, and I always have to go to my wallet address and copy wallet address and send it to them. It was a very tedious process”. Coinprofile created a platform for traders to create an account and store all their wallet addresses, creating unique links leading to a landing page.

“In May 2020, after acquiring a handful of users and considering the feedback and requests we’ve pulled, we added a remittance functionality that allows users to make payment with their wallets,” Aminu said.

When asked about the sudden emergence of Payourse, he revealed that the company has been in existence the same year Coinprofile was founded. He said, “well, we actually created Payourse, a long time ago, in 2019 as a parent company, but we never really announced it to the world. But it’s always been the parent company. And we’ve always had this long term vision of a company which would build user-friendly products on top of crypto”

Speaking on the new investment, Bashiru Aminu said the team is proud of the quality of their investors. “This new funding will help us improve our existing use-cases and then build more as we extend into new markets and accelerate crypto adoption on the continent.”

“I worked closely with Bashir as a visiting Partner at Flori Ventures. I’ve spent 4 batches at YC and rarely do I see a company with this kind of knockout performance and a founder who is willing to put in the hard work to continue to nurture it. Bashir is capable of meeting the demands of a crazy growth startup and also ramp up fundraising”. Holly Liu, Visiting Partner at Flori Ventures, said.

Also speaking about Payourse, Olumide Soyombo, Managing Partner at Voltron Capital, said: “We are excited to back the Payourse mission as we believe this team is a super technical team with subject matter expertise. The team is solving an important problem by providing the key infrastructure for Africans and African businesses to adopt crypto”.

Payourse believes the future of finance in Africa will be defined by crypto and its positionig itself to help more African businesses and individuals get on board. The company is targeting Ghana and Kenya market as it expands its operations.

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Fintech

Flutterwave Celebrates Inclusion in CNBC’s Top 250 Global Fintechs

Published

1 week ago

July 18, 2024

Samed Olukoya

Flutterwave has been recognized as one of the Top 250 Fintech companies globally by CNBC and Statista.

Joining the ranks of industry giants like Ali Pay, Klarna, Piggyvest, and Mastercard, this accolade underscores Flutterwave’s impact on the financial technology sector.

This honor follows Flutterwave’s recent inclusion in Fast Company’s Most Innovative Companies list, highlighting the company’s pivotal role in transforming Africa’s payment landscape.

The recognition is a testament to Flutterwave’s dedication to innovation and excellence in providing seamless payment solutions across the continent.

Expressing gratitude, Flutterwave acknowledged its talented team, supportive board, reliable partners, and loyal customers for contributing to this success.

The company continues to drive progress in the fintech industry, reinforcing its commitment to enhancing financial accessibility and inclusion in Africa and beyond.

Flutterwave’s recognition on these prestigious lists marks a proud moment and a significant milestone in its journey, reflecting the company’s growing influence and leadership in the global fintech arena.

Fintech

Nigeria Sees 31% Increase in POS Fraud Amid Rising Terminal Adoption

Published

2 weeks ago

July 12, 2024

Samed Olukoya

The prevalence of fraud and forgery in Nigeria’s payment system has shown a significant shift in the first quarter of 2024, with Point-of-Sale (POS) transactions experiencing the highest increase in fraudulent activities.

According to the “Fraud and Forgeries Report in Nigerian Banks” for Q1 2024 by the Financial Institutions Training Centre (FITC), POS fraud cases surged by 31.12%.

In Q4 2023, there were 2,683 reported cases of fraud associated with POS terminals. However, this number escalated to 3,518 cases by Q1 2024.

POS fraud cases made up 30.67% of the total fraud cases (11,472) recorded in the quarter under review.

Financial Impact of POS Fraud

While there was a rise in fraud cases, the amount of money involved in POS fraud declined. In Q4 2023, the total amount involved in POS fraud was NGN604.91 million.

This amount decreased by 37.74% to NGN376.59 million by Q1 2024.

Also, the amount of money lost to POS fraud saw a significant decline, falling from NGN14.62 million by 68.34% to NGN4.63 million on a quarterly basis.

The decrease in financial losses may indicate improved detection and prevention measures, but the overall rise in fraud cases highlights the need for continued vigilance.

Adoption of POS Terminals

The rise in POS fraud cases is attributed to the widespread adoption of these terminals by merchants and consumers alike.

As a cash-driven Nigerian economy, the convenience and efficiency of POS transactions have made them a popular choice.

However, this widespread adoption has also made them a target for fraudsters seeking to exploit vulnerabilities in the system.

In Q1 2023, the number of registered POS terminals increased by 218,475, from 2,318,947 in January 2023 to 2,537,422 by March 2023.

By the same quarter in 2024, the number of registered POS terminals had increased by 289,154, from 3,441,287 in January 2024 to 3,730,441 by March 2024.

Overall, between the end of Q1 2023 and Q1 2024, Nigeria witnessed an additional 1,193,019 POS terminals, marking a 47.02% increase.

Despite this increase in the number of registered POS terminals, the first quarter of 2024 saw POS transaction volumes reach 314 million, which is a significant drop of 73.81 million, or 19.03%, from the 387.81 million transactions recorded in the first quarter of 2023.

Regulatory Measures and Industry Response

The Corporate Affairs Commission (CAC) recently stated that POS agents of major fintechs in Nigeria, including OPay, Palmpay, and Moniepoint, among others, must have registered their businesses by July 7, 2024.

However, it extended the deadline by 60 days, giving operators until September 5, 2024. The CAC said the registration is aimed at safeguarding the businesses of fintechs and customers, as well as strengthening the economy.

Meanwhile, the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) condemned the mandated registration, describing it as an attempt to tax more Nigerians to generate revenue for the government.

Fintech

PalmPay Issues July 7 Deadline for POS Operators to Submit CAC Certificates

Published

3 weeks ago

July 5, 2024

Samed Olukoya

PalmPay has announced a firm deadline of July 7, 2024, for all Point of Sale (POS) operators using its platform to register with the Corporate Affairs Commission (CAC) or submit their CAC certificates.

This mandate aims to ensure compliance with Section 863 (1) of the Companies and Allied Matters Act 2020 and the 2013 Central Bank of Nigeria (CBN) guidelines on Agent Banking.

In a statement released on Thursday, PalmPay emphasized the importance of adhering to these legal requirements.

“Following CAC’s directive for POS operators to register and submit their CAC details on or before July 7, 2024, PalmPay is encouraging its business users who have not yet complied with the directive to do so promptly,” the statement read.

This initiative comes in the wake of a two-month registration deadline issued by the Federal Government through the CAC, mandating POS companies to register their agents, merchants, and individuals.

The directive is part of broader efforts to bring regulatory compliance and transparency to Nigeria’s burgeoning fintech sector.

To facilitate the registration process, PalmPay has integrated the CAC registration portal into its Business App.

This integration allows operators to seamlessly register their businesses and submit the required documents, ensuring a smoother compliance process.

Umuteme Enakeno, Head of Marketing and Communication at PalmPay, reiterated the company’s support for the CAC directive.

“PalmPay fully supports the CAC’s directive. We provide 24/7 customer support and conduct weekly meetings to guide operators through the process,” Enakeno stated.

He also highlighted that operators can seek assistance through PalmPay’s customer support channels, including phone, email, or in-person visits to any of the 36 state offices across Nigeria.

PalmPay has urged all its business customers to submit or register their CAC details before the deadline.

“Register your business via the PalmPay Business App: Ensure that all necessary documents and information are provided accurately before submitting your application. Update your PalmPay account once you get the certificate to reflect your new corporate status,” Enakeno advised.

Failure to comply with the CAC registration requirement will result in the freezing of PalmPay accounts, the company warned.

This stringent measure underscores PalmPay’s commitment to aligning with national regulatory standards and fostering a compliant fintech ecosystem.

Meanwhile, the Association of Mobile Money and Bank Agents in Nigeria, representing POS operators, has indicated plans to challenge the mandatory CAC registration in court, questioning its legality and potential impact on their operations.