The number of startups on the African continent tripled to about 5,200 between 2020 and 2021, according to the latest report from McKinsey and Company.
Financial technology (Fintech) startups account for just under half of the entire startup and generated around $4 billion to $6 billion in 2020.
On average, fintech penetration on the continent was estimated between 3 and 5 percent for all African nations, excluding South Africa.
However, revenue could go up by 800% if penetration levels reach 30.3 percent like global market leaders.
The report estimated that Africa’s financial-services industry could expand by about 10 percent per annum and grow to $230 billion in revenue by 2025. South Africa alone is estimated to generate $80 billion of the total amount.
Transactional solutions of African fintechs can be up to 80 percent cheaper and interest on savings up to three times higher than those provided by traditional players, while the cost of remittances may be up to six times cheaper, McKinsey noted.
“Rather than a “fintech disruption,” the continent is experiencing a “fintech eruption,” and local and international investors are taking notice. African fintech is emerging as a hotbed for investment, with average deal sizes growing and the proportion of fintech funding in Africa increasing over the past year, bringing jobs and growth to African economies. And the story is only just beginning.
“As fintech matures, financial services on the continent are at an inflection point, and several African countries have a significant opportunity to capitalize on the momentum of recent years to unlock further potential in the sector,” McKinsey added.
Multi-channel Payments Platform Interswitch Unveils ‘Quickteller Transport’ to Enrich Commuters Travel Experience
Interswitch has added ‘Quickteller Transport’ to its arrays of innovative services to enrich travelers’ booking experiences.
African integrated payments and digital commerce platform company Interswitch has added ‘Quickteller Transport’ to its arrays of innovative services to enrich travelers’ booking experiences.
This new feature will enable users to easily search and book inter-state trips from multiple travel operators across Nigeria.
Users will also be able to filter their search to specific or preferred operators, compare fares based on criteria such as vehicle type, departure point, and time, as well as access specialized functions provided by transport operators, including seat selection and preferred pick-up location option, all at their convenience.
Speaking at the launch, the MD of Interswitch Industry Ecosystems Division, Chinyere Don-Okhuofu disclosed that the ‘Quickteller Transport’ feature is another innovative step taken by the company in its commitment to continuously provide its customers with convenient access to lifestyle and payment services.
In her words, “Transportation is a necessary aspect of human life, enabling both social and economic interactions. In keeping with our culture of driving innovation and positively impacting consumer lifestyle in the society, we developed our Quickteller Transport service to provide added travel booking and payment convenience to our over 5 million customers.
“Built as a multimodal offering, we will be rolling it out to include other travel and transportation modes such as trains and ferries, working with operators across Nigeria.
“We are ecstatic to be launching this service. And as we launch our suite of new complementary services, Quickteller customers can be assured of our commitment to providing an excellent experience using Quickteller to access all their lifestyle and payment needs.”
Quickteller Transport is already embedded as a service on the Quickteller Web and Mobile app and is available for use by both new and existing Quickteller customers.
What Interswitch intends to achieve with the newly launched feature is to leverage technology in enabling the process of booking for transport and making payment seamless. The platform is robust and inclusive such that it caters to the needs of both the government and private companies.
Nigerian Digital Bank Fairmoney Partners With Oradian to Accelerate Growth
Nigerian online loan app Fairmoney has partnered with Oradian a cloud-based enterprise solution to expand its growth across Africa and Asia
Through this strategic partnership, Fairmoney will leverage on Oradian platform that services over 10 million banking customers in 13 countries across Africa and Asia to accelerate its growth in these regions.
FairMoney says Oradian’s ability to support its credit assessment capabilities and the ‘plug and play’ nature of its solution were key factors in its selection.
Speaking on this partnership, FairMoney CEO Laurin Hainy said: “Our ultimate goal remains bridging the financial inclusion gap in emerging economies, and we understand the power of collaboration and partnerships in bringing this to reality.
“Since the inception of FairMoney, we have continued to serve our current markets with excellent financial products, providing the much-needed access to credit and making essential banking services available to everyday people.
“We decided to partner with Oradian to leverage the already existing infrastructure and trusted system performance to scale our solutions to new markets where they are needed and perfect existing offerings in our current markets”.
Also commenting on this is the CEO of Oradian Antonio Separovic who said, “To be able to innovate quickly, with products that the market requires, while being compliant with changing regulations in very different markets, takes a different breed of core system.
“All of these are real daily challenges in the back-office, not seen by the customers and often taken for granted. However, we know through working with a broad range of financial customers, those challenges are very real, and in some cases, insurmountable without the right technology and an expert partner.”
The African and Asian emerging markets are in need of financial services that provide both consumer loans and working capital.
This has however created a big opportunity for companies that are able to move quickly and leverage recent technological advances in emerging markets.
FairMoney has been successful in executing this mission, after it became the leading credit-led digital financial institution in Nigeria two years after its incorporation.
Flutterwave Merchants Can Now Accept Payment Via Google Pay
Nigeria’s leading payments service provider Flutterwave has enabled Google Pay on its platform just a week after adding eNaira wallet.
Flutterwave merchants can now accept payments via Google Pays from countries where the Google Wallet app is available.
Google Pay is a mobile payment service developed by Google to power in-app, online, and in-person contactless purchases on mobile devices. This new payment option will enable users to make payments with Android phones, tablets, watches, and other devices. Through Google Pay, customers can make payments using the phone instead of a bank card or cash.
As seen on the company’s page, “In today’s business environment, the more payment methods you accept as a business, the more possibilities you give yourself to grow your revenue.
“We are happy to announce Google Pay as a payment option for Flutterwave merchants granting them the ability to afford convenience for customers to make payments with Google Pay in the countries that it is available”.
Also speaking on the recent collaboration, founder and CEO of Flutterwave, Olugbenga ‘GB’ Agboola said, “The continued and rapid growth of Flutterwave is due to our commitment to building a platform with simplified payments for everyone.
“The Google Pay payment option will attract more international customers and increase the current success rates for businesses on Flutterwave.
“Integrating with Google pay will allow users across the globe to participate in the booming e-commerce ecosystem in Africa. It will enable us to further fulfill our promise of creating endless possibilities for all”.
How Businesses Can Enable Google Pay At Check Out On The Flutterwave Platform:
These are the steps below;
- The business must be registered on the Flutterwave platform.
- Log in to the Flutterwave account and go to your dashboard.
- Proceed to the “Account settings” tab
- Click on Enable Dashboard Payment Options.
- A list of payment methods will appear.
- Select Google Pay.
- The selected payment methods will appear on the checkout modal.
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