Collaboration is key for Unified Payments as it begins recording POS transactions
Collaborate. That’s a word Agada Apochi, the CEO of Unified Payments (formerly ValuCard), used six times in ten minutes as he talked about his company’s new license. It’s easy to understand why: Unified Payments is a product of collaboration, having been founded twenty-six years ago by 14 Nigerian banks. In April 2024, Unified Payments was granted a Payment Terminal Service Aggregator licence (PTSA), only the second to be issued by Nigeria’s Central Bank. “There was a single point of failure in NIBSS, the holder of the first licence, so there was a need to bring in another player,” a policy expert told TechCabal. PTSA holders must have a processing and switching licence, an average uptime of 99% in 2023, and ₦1 billion capital requirement. “We have been consistent in leading innovations and providing leadership in the industry, and we not only met but also surpassed all the criteria required by the regulator,” Agodi said about the application process. The licence allows Unified Payments to maintain a database of payment terminals and record Point-of-Sale (POS) transactions in Nigeria’s agency banking sector. The fintech began recording payments in June, almost thirteen years after NIBSS started, and is taking a collaborative approach to earning market share. “As a processor switch, you are competing with others, but as a payment terminal service aggregator, from our point of view, we are not competing; we are collaborating with everyone in the industry without any form of discrimination to offer services and for the regulators to have oversight over what is going on,” Apochi said. Unified Payments will also look to partner with NIBSS, its competitor, as Nigeria’s agent banking sector grows exponentially. In March 2024, data from NIBSS showed that 2.7 million POS devices were in circulation—a 48% increase from 2023. “Upon getting our license, we had a meeting at the highest level between our company and NIBSS to understand [each other] and share points and ideas of how we can work together to ensure that there is service availability because that is what is most important to every operator and the Central Bank of Nigeria is service availability,” Apochi said in his Victoria Island office. Working with Fintechs The PTSA license will require Unified Payments to work with leading companies in the agency banking sector, such as Moniepoint, Opay, and Palmpay. These companies have been in regulatory waters in recent months and in April, the central bank directed five Nigerian fintechs to pause onboarding new customers. “The central bank’s first focus is to grow payment transactions in Nigeria, but in conformity with regulations and guidelines issued by the central bank,” Apochi told TechCabal. That ban lasted six weeks and was lifted after fintechs committed to a list of conditions set by the central bank. For Agodi, Unified Payments will help fintechs “achieve their business goals without running afoul of” regulatory requirements. “The primary focus for us as a service aggregator is not about [the] enforcement of rules and regulations. It’s about enabling service providers, industry operators, to provide their services and solutions in compliance with rules and regulations defined by the Central Bank of Nigeria,” he said. Have you got your early-bird tickets to the Moonshot Conference? Click this link to grab ’em and check out our fast-growing list of speakers coming to the conference!
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Tecno Pop 8: What you should know before buying it
The Tecno Pop 8 is one of the latest Tecno products, the newest in the Pop series, and it is presented as an affordable device targeting consumers seeking basic smartphone functionalities. This article dissects the device’s pros and cons. Pros of the Tecno Pop 8 Here are some highlights you may like about the Pop 8: Robust battery life The Pop 8 boasts a substantial 5000mAh battery, promising extended usage between charges, ideal for users demanding prolonged smartphone operation. Expansive storage Offering up to 128GB of internal storage and the option to expand memory, the Pop 8 provides ample space for applications, media, and files. Modern design The device features a contemporary hole-punch display design and a sleek overall aesthetic, appealing to users seeking a stylish smartphone. Essential camera capabilities While not a flagship camera system, the 13MP AI rear camera and 8MP front camera offer sufficient capabilities for everyday photography and videography. Affordability With a price range of ₦120,000 to ₦130,000, the Pop 8 is a budget-friendly option accessible to many consumers. Cons of the Tecno Pop 8 Here are some other sides you may want to consider before you purchase the Tecno Pop 8: Performance limitations While adequate for basic tasks, the Tecno Pop 8’s performance may be restricted when handling demanding applications or resource-intensive activities. Display quality While suitable for the price point, the HD+ resolution might not deliver the same level of clarity and detail as higher-resolution displays. Camera constraints The camera system, though functional, may struggle in challenging lighting conditions and may not produce images with exceptional detail or dynamic range. Basic features: The Tecno Pop 8 tilts towards affordability, resulting in the omission of certain advanced features found in higher-tier smartphones. Final thoughts The Pop 8 presents a compelling option for users prioritising affordability and essential functionalities. However, individuals seeking luxury Android devices, devices for demanding tasks, exceptional camera performance, or advanced features might consider exploring alternatives.
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👨🏿🚀TechCabal Daily – Got gains? Not for long
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy pre-Friday And congratulations to Flutterwave, Piggyvest, Kuda, PalmPay, Yoco and MTN for making CNBC’s list of the Top 250 Fintech Companies! These fintechs join payments giants like Mastercard and Klarna on the global stage. The list might be unranked, but you guys are always top of mind for us! In today’s edition d.light raises $176 million Nigeria to tax banks’ $1.2 billion FX gains LULA acquires the South African arm of Zeelo Startbutton wants to be your expansion partner The World Wide Web3 Opportunities Funding d.light raises $176 million funding to light up East Africa d.light, a company that sells solar-powered solutions to off-grid African areas has raised $176 million in debt funding, bringing its total debt raise since 2020 to $718 million. The company says it will use the additional sum to expand to off-grid households in Kenya, Tanzania, and Uganda. A delightful growth: d.light’s business focus is in African countries where it has captured more than 100 million customers across Kenya, Tanzania, Uganda, and Nigeria. It has sold over 25 million solar products in Africa. In H1 2023, the company grew its revenue by 41% and business analytics platform, Growjo, estimated d.light’s gross revenue as $301.2 million in the same year. It services a needy market as more than 600 million rural Africans lack electricity, and many more are looking for alternative energy sources to power their homes and businesses. How it’s powering Africa up: To address the issue of electricity access and low income, d.light chooses to operate a pay-as-you-go model for its solar power solutions. Households and businesses in off-grid areas pay small amounts of money to access solar-powered electricity. This makes scale easier for d.light. Additionally, the company sells its more expensive products like solar lanterns and cooking stoves to higher-income households in the area. The balanced market targeting, coupled with the first-mover advantage it had when it started in 2007 in the solar market industry, makes the business enticing to investors. However, with the additional sum, CEO Nedjip Tozun said the money will be a major driver in the company’s bid to stay cashflow positive and remove pressure from raising debt in the future. Read Moniepoint’s 2024 Informal Economy Report 7 out of 10 informal business owners borrow money for their business. Click here to find out more about Nigeria’s informal economy and credit. Economy Nigeria to tax banks’ $1.2 billion FX gains When President Tinubu floated the naira and unified the multiple exchange rate markets last year, the naira weakened against the dollar. The move also handed Nigeria banks huge chunks of FX profits. Banks cash in their cheques: In 2023, GTBank Nigeria’s 5th biggest bank by assets made ₦449.347 billion ($274 million) in profits from foreign exchange earnings. In its audited accounts for 2023, United Bank for Africa (UBA), a Nigerian bank valued at over ₦1 trillion, earned ₦112.1 billion ($685 million) from foreign exchange income. Similarly, Zenith Bank, another Nigerian bank, gained ₦228.9 billion ($139 million) from FX in 2023. Cumulatively, 9 of the 10 biggest banks in Nigeria made ₦2 trillion. The CBN, however, caught on to this and stopped commercial banks from using those gains to pay dividends or meet operating expenses. It’s raining taxes: President Tinubu is finally finding a way to put those gains to good use. Yesterday, as part of an amendment to the Finance Act, the president wrote to lawmakers to allow a one-time 50% tax on the FX gains. The monies will be used to fund capital infrastructure development, education, healthcare, and welfare projects. Alongside the new tax, the President made a request to lawmakers to increase government spending by as much as ₦6.2 trillion naira ($3.8 billion). At 10%, Nigeria has one of the lowest tax-to-GDP ratios in the world. The proposed tax will help Nigeria’s tax collection agency Federal Inland Revenue Service, move closer towards achieving its goal of increasing tax revenue by 57%. The tax will also serve as added funds for the president’s Renewed Hope Agenda which hopes to lift 100 million people out of poverty. Join Fincra at API Conference on July 20, 2024 Calling all devs!! This is your chance to dive deep into Fincra’s extensive suite of payment APIs and accompanying SDKs. Come and see how you can build your next big idea with easy-to-integrate APIs. Reserve your spot here! M&As LULA rides to the rescue as Zeelo exits South Africa Big news for South African commuters! LULA, the ride-sharing service for office workers, has acquired the local arm of Zeelo, a US-based company specialising in staff bus-sharing. This move will strengthen LULA’s presence in the South African market, offering more options for businesses looking to ease employee commutes. Zeelo shifts focus as LULA takes the wheel: While details of the cash-only deal remain undisclosed, Zeelo will be exiting South Africa to concentrate on its core markets in the US, UK, and Ireland. The company leaves behind a strong legacy, having facilitated over 2 million rides annually for South African commuters. LULA is ready to leverage Zeelo’s existing network of 18,000 riders to expand its reach across South Africa. This acquisition comes at a crucial time, as transportation remains the biggest work-related expense for South Africans with some spending as high as R2,280 ($120) per month. With LULA and similar platforms like Uber for Business and MoveInSynch, companies can offer cost-effective solutions for employee commutes. LULA’s winning formula: Founded in 2018, LULA boasts a growing network with over 700,000 rides completed for more than 380 companies across five South African cities. LULA partners with a network of over 1,000 drivers and shuttle operators, offering a commission-based model (20-40%) instead of owning its own fleet. This acquisition is expected to make LULA cash-flow positive, allowing the company to focus on “smart scaling” according to CEO Velani Mboweni. Smoother rides ahead: While Zeelo’s departure might raise eyebrows, LULA’s commitment to the South African market
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Flutterwave, Kuda, Piggyvest named CNBC’s Top 250 Fintech Companies
Statista, a world-renowned market data provider, and CNBC, an American media company, listed seven African fintech companies—Flutterwave, Piggyvest, Kuda, MTN, Bank Zero, Palmpay, and Yoco—in their 2024 list of the 250 top fintech companies. The startups were selected from 2,000 companies globally. The list, which also features global companies like Mastercard, Klarna, Flywire, and Robinhood, is the second edition by the Statista-CNBC duo—the first edition was in 2023. The list was curated based on desk research by the Statista team and information provided by the businesses, such as 2023 revenues, year-on-year sales growth rate, and total headcount. However, it is unranked. In the 2024 250 top fintech list, Nigerian fintech Kuda and South African Bank Zero were categorised as one of the best neobanks. Nigerian unicorn Flutterwave, the Chinese-owned Palmpay, Partech-backed South African fintech Yoco, and MTN—for its mobile money service, MTN MoMo— graced the payment category. Piggyvest was the lone African startup in the financial planning category. Norrsken-backed Startbutton makes market entry easy for startups eyeing global expansion Have you got your early-bird tickets to the Moonshot Conference? Click this link to grab ’em and check out our fast-growing list of speakers coming to the conference!
Read MoreTinubu asks Senate to amend Finance Act to tax banks’ FX gains of ₦2 Trillion
Nigeria’s President Bola Tinubu has asked the National Assembly to amend the 2024 Finance Act to tax the unrealised forex (FX) gains of traditional banks to fund capital infrastructure development, education, healthcare, and welfare projects. Nine of Nigeria’s leading banks recorded over ₦2 Trillion in FX gains for the first nine months in 2023 after the Central Bank floated the naira and unified the multiple exchange rate markets. In September 2023, the CBN barred commercial banks from using those gains to pay dividends or meet operating expenses. The one-time windfall tax is part of a proposed amendment to the Finance Bill which the president seeks to increase by ₦6.2 trillion, according to a letter to lawmakers on Wednesday. The proposed tax is part of the Tinubu administration’s plan to boost revenue collection to fund his Renewed Hope agenda, which hopes to lift 100 million people out of poverty. Nigeria’s tax collection agency Federal Inland Revenue Service, expects to increase revenue by 57% in 2024, Bloomberg reported in January. Nigeria has one of the lowest tax-to-GDP ratios in the world. In January 2024, President Tinubu signed the ₦28.7 trillion 2024 budget into law. Now the president wants the National Assembly to approve an additional ₦6.2 trillion: ₦3.2 trillion to fund infrastructure projects and ₦3 trillion for recurrent expenditure. *This is a developing story
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Norrsken-backed Startbutton makes market entry easy for startups eyeing global expansion
Ansoff’s matrix, a two-by-two matrix burned into the minds of business students, provides four options for a company chasing growth. One is market development, which takes existing products to new markets. While Ansoff’s matrix shows market development isn’t high risk, it comes with problems. One such challenge is that because startups don’t want to dive headlong into these new markets, they may treat these new markets as experiments. This test-the-water approach means they may not want to register an entity in these new markets just yet, which in turn means accepting payments will be impossible. What if you could sell your products, accept payments and pay taxes without incorporating a new entity in those markets? That’s the fundamental pitch of Startbutton, a Norssken-backed startup founded in 2023 by Malick Bolakale, a former compliance lead at Paystack, and Kelechi Oti, an ex-Microsoft engineer. Startbutton is what finance folks call a merchant of record, a company that helps you sell your products in foreign markets, take payments, and sort out tax obligations. It will take on all liabilities, too (think customer refunds, for instance), all for a small fee. Startbutton claims it processes around $300,000 monthly, earning a 1% transaction fee on every transaction and a 0.5 – 1% fee on FX transactions. Most of its customers are in the aviation, gaming, and e-commerce sectors in over 20 countries. “We intend to start first with digital commerce and move to physical goods subsequently.” In its journey to continental domination, Startbutton will compete with Klasha, dLocal, Flocash, and Kyshi, which offer similar services in Africa’s $1.5 Trillion B2B payments marketplace. While its competitors help startups receive global payments and settle local transactions, Startbutton offers added services like tax settlement, regulatory compliance, and fraud protection. Bolakale believes the startup’s grasp of compliance sets it apart from competitors. The startup is in Nigeria, Ghana, Kenya, Rwanda, and South Africa and plans to expand into Tanzania, Egypt, and parts of Asia. Like many startup ideas, Startbutton was born from a problem its founders encountered. “When I started working at Paystack, the problem became more apparent. We couldn’t work with foreign companies without local entities,” said Bolakale. “It was clear we had a product that pan-African businesses need and could scale globally.” Per Bolakale, Startbutton primarily serves B2B businesses in aviation, gaming, and e-commerce across businesses in over 20 countries. “We intend to start first from digital commerce and move to physical goods subsequently.” Have you got your early-bird tickets to the Moonshot Conference? Click this link to grab ’em and check out our fast-growing list of speakers coming to the conference!
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Before you buy the Tecno Pop 7 (BF6)
The Tecno Pop 7 [BF6] is an entry-level smartphone emphasising affordability and essential features. This analysis examines the device’s strengths and weaknesses based on its specifications. Battery life and charging The Tecno Pop 7 boasts an expansive 5000mAh battery, promising prolonged usage between charges. Claims of enduring 12 hours of gaming, 25 hours of video playback, and a remarkable 124 hours of music enjoyment are noteworthy for a device in this category. However, real-world performance may differ based on usage patterns. Including a 10W Type-C charger in the box is commendable, though charging speeds might be comparatively slow compared to faster-charging technologies of more expensive Androids. Camera capacity The 13MP AI Dual Rear Camera, featuring an f/1.85 aperture and dual flashlight, is a notable asset for the Pop 7. It suggests enhanced low-light photography and improved image quality. The presenceof AI modes like Portrait, HDR, and Time-lapse is welcome, potentially elevating photographic experiences. Nevertheless, the camera system’s actual performance necessitates evaluation under diverse conditions. Display and design The Pop 7 exhibits a 6.6″ HD+ Dot-Notch display with a 90% screen-to-body ratio, offering a relatively immersive viewing experience. The 120Hz touch sampling rate promises smoother interactions. The IPX2 splash resistance is a practical addition, providing basic protection against water splashes. The device’s square-shaped design and fingerprint sensor are subjective preferences, varying based on individual taste. Performance and storage The Tecno Pop 7, equipped with up to 4GB of RAM and 64GB of ROM, the Tecno Pop 7 aims to deliver smooth performance and adequate storage. The underlying processor and software optimisation will determine the device’s capacity to handle multitasking, and demanding applications will be determined by the underlying processor and software optimization. Expandable storage support is a valuable inclusion. Tecno Pop 7 Affordability With a price range of ₦96,000 to ₦110,000 on e-commerce platforms like Jumia, the Pop 7 is positioned as a budget-friendly option for consumers seeking a basic smartphone. Final thoughts before you buy the Tecno Pop 7 (BF6) The Pop 7 presents a combination of appealing features for its target market. Its substantial battery life, camera capabilities, and display are potential strengths. However, performance, camera quality, and overall user experience demand hands-on evaluation to form a definitive conclusion. Prospective buyers should consider their specific needs and priorities before purchasing.
Read MoreExclusive: Mobility startup LULA acquires Zeelo’s South African subsidiary
LULA, a ride-sharing platform for office workers, has acquired the South African subsidiary of US-based staff bus-sharing startup Zeelo for an undisclosed amount. Both companies declined to disclose the specifics of the cash-only deal. Zeelo, which launched in South Africa in 2019 and has raised $33 million, is leaving the country to focus on its US, UK, and Ireland markets. Until its exit, Zeelo completed more than 2 million rides annually in South Africa. LULA will use Zeelo’s footprint of over 18,000 riders to expand across the country. Transportation is the biggest work-related expense for South Africans, according to data by Statistics South Africa. Workers spend an average of R2,180 ($121) when they use their cars and R960 ($53) if they use taxis. Platforms like Uber for Business, MoveInSynch and LULA currently enable employers to reduce this cost for employees. With the acquisition, LULA hopes to gain a larger market share. Founded in 2018 by Velani Mboweni and Xabiso Nodada, LULA operates in five cities in South Africa and claims to have completed 700,000 rides for over 380 companies. The company also has over 1,000 registered drivers and shuttle fleet operators. LULA does not own the vehicles but partners with individual drivers and shuttle fleet operators to provide the rides for a commission ranging from 20% to 40%. Through the revenues generated from Zeelo’s operation, Lula will also become cashflow positive, allowing it to “scale smart, rather than scale fast” according to Mboweni. “The decision to exit the region was a challenging one [but] we are excited to support the transition of our customers and suppliers to the LULA platform,“ said Sam Ryan, founder and CEO of Zeelo.
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👨🏿🚀TechCabal Daily – E-SIMs are coming to Egypt
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning Nigeria’s red-hot neobanks are booming, but they can’t reach everyone without a secret weapon: banking agents. These agents are like walking branches, bringing financial services directly to communities. But it’s not just about convenience—agents are making a killing selling debit cards with a 90% profit margin! This unique partnership is crucial for both sides, but is it sustainable? Dive deeper and see why Nigerian neobanks and banking agents need each other to thrive. In today’s edition Is Maxoko here yet? Egypt to introduce e-SIMs in two months South Africa is getting smarter IDs and passports Ethiopia and UAE sign local-currency swap worth $817 million The World Wide Web3 Opportunities M&As Are we going to finally see the Wasoko and Max AB merger? Mbappe has finally been unveiled as a Real Madrid player. Over the years there has been uncertainty over the move, with football fans across the world constantly monitoring the news in every transfer window to see if the deal had happened. You’ll certainly feel the same way if you’ve been following the news about the proposed merger between two of Africa’s largest e-commerce startups, Kenyan’s Wasoko and its Egyptian counterpart, Max AB. We first published news of the merger in December 2023. After a reported fallout between both companies, talks about the merger are starting to pick up again. Yesterday, one publication reported that Wasoko and Max AB merger could happen in a few weeks. The merger which will create a new entity named Maxoko has a clear promise: creating an e-commerce leader with sufficient runway. If finalised, the merger will be one of the biggest on the continent, and the new entity will have over 450,000 merchants serving over 65 million consumers in eight African countries. The deal which was expected to have finalised by Q1 2024 stalled due to extended due diligence, per TechCrunch. Wasoko also refused to share its merger plans with employees for over six months, fearing that leaks could jeopardise the deal. While other parts of the deal have been agreed (Wasoko will own 55% of the new entity, and 45% will go to MaxAB, overlapping areas of both businesses have been streamlined through layoffs), only one question remains: when will “Maxoko” finally be unveiled? Read Moniepoint’s 2024 Informal Economy Report 90% of businesses in Nigeria’s informal economy earn less than N500,000 in monthly profit. Click here to explore the financial profile of Nigeria’s informal economy from Moniepoint’s latest report. Telecoms Egypt to introduce e-SIMs in two months eSIMs have been around since 2016. When it was introduced, it was touted to replace physical SIM cards quickly. This prediction is yet to come to pass. As of 2023, there were only 986 million eSIMs connected, with most in European and American countries. However, like most new technologies, eSIMS only made its way into Africa in 2019. In fact, Airtel only launched its eSIM service in 14 countries in February 2023. But it’s not all gloom. Egypt has announced that it will join 18 other African countries to provide eSims to mobile subscribers. Egypt’s minister of communications, Amr Talaat, noted that government-owned Telecom Egypt and other telcos plan to launch eSIMs by Q4 2024. The only thing left is the approval of the government regulator, the National Telecom Regulatory Authority (NTRA). One e-SIM to access them all: Egypt’s eSim plan is unique because it will allow interoperability with all four major telcos operating in the country. Talaat says that these e-SIMs will allow smartphone users to switch between telecom operators without needing to remove or exchange SIM cards in their phones. This is bound to increase competition for the telecoms market in Egypt. Users will likely see a drop in data prices as the four major telecoms strive for user attention. Switching costs become lower. Furthermore, Egypt is set to launch a mobile 5G network after Telecom Egypt, in partnership with Nokia, obtained the country’s first 5G licence. This is timely as the 5G network, used in e-SIMs, will offer faster internet speeds. Join Fincra at API Conference on July 20, 2024 Calling all devs!! This is your chance to dive deep into Fincra’s extensive suite of payment APIs and accompanying SDKs. Come and see how you can build your next big idea with easy-to-integrate APIs. Reserve your spot here! Economy South Africa is introducing new smart IDs South Africans are getting “smarter” Smart ID cards to strengthen their fight against passport fraud which has haunted the country since 2022. “Lebogang Ndlovu from Bangladesh,” is an inside joke for the scam that rocked South Africa in 2022. A Pakistani citizen, Arfan Ahmed, was caught issuing fake South African passports to Pakistani and Bangladeshi citizens to travel to South Africa. Corrupt officials in the government arranged for South African locals to sell their identity to these foreigners. The crackdown led to the arrest of the culprits and the sacking of 12 government agents. The case resurfaced again in June last month after Ahmed was sentenced to 18 years imprisonment for allegedly bribing government officials. Now, passports are getting smarter: Following the development, newly appointed Democratic Alliance (DA) Home Affairs minister, Leon Schreiber, says South African smart IDs and passports will be encrypted with additional security features to prevent identity theft and ensure the biometric data and photograph of the passport handler matches. In his address, Schreiber said, “Both the passport and smart ID card will be refreshed and updated in order to enhance the security features of these documents, with the aim of building trust by more countries and organisations worldwide.” Smart IDs were introduced in 2013 to replace the old green ID books. But it seems the development has only compounded the woes of South Africans. The country could learn a thing or two from Ethiopia’s Fayda ID which hasn’t reported a passport fraud case since 2016. Paystack Virtual Terminal is now live in more countries Paystack Virtual Terminalhelps
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A profitable union: How banking agents helped OPay and Moniepoint distribute 17 million cards
Nigerian neobanks and banking agents need each other. The agents are the neobanks’ branches; they open accounts, accept deposits, process withdrawals, and issue cards. In return, the agents—who often have a primary business—earn extra income. This relationship is crucial because neobanks use the credibility of these agents, who have close relationships with their communities, to distribute 17 million debit cards. The agents help the fintechs meet “customers at the point of their need,” an OPay spokesperson told TechCabal. OPay and Moniepoint, arguably Nigeria’s two biggest neobanks, sell cards to agents for ₦100, who then sell the cards to customers for ₦1,000, a 90% profit margin. Agents also receive branded materials to advertise the cards. Moniepoint began distributing cards when it entered the retail banking space in August 2023, two years after Opay. “There’s no business we do with these companies that we don’t see profit,” said Mr. Duke, a POS agent in Ketu. The dynamics of this relationship—where agents make a profit on each card sale—make card distribution expensive. And while cards are costly for fintechs, they have historically been great for customer acquisition. Agents get cards by applying online or building relationships with card distributors who offer cheaper rates than the online channel. Card distributors are contract staff employed by the neobanks to sell cards to agents. Other agents without a relationship with card distributors must visit the fintechs’ offices to get cards, which translates to a higher cost due to transportation fees. While some fintech customers can get their cards from their bank by applying through apps, this option is unavailable to customers who use feature phones. They rely on cards for transactions since feature phones cannot support apps for online transactions. “The card is the only channel they use to access their account,” an employee at a fintech company told TechCabal. “The reason people get cards from us is either that they do not have time to go to the fintech office or they cannot register the cards themselves. They need the cards to perform transactions without a smartphone,” a POS agent in Mile 12 told TechCabal. Nigeria has about 1.5 million POS agents scattered across the country, but only a few distribute cards due to additional capital requirements and not everyone finds success selling them. “We sell about three cards per week; the cards do not move fast,” an agent in Ketu who has sold 69 Opay cards said. Card sales depend on location; agents in residential areas sell fewer cards than those in markets. Mr. Duke sells an average of 20 cards weekly, which he credits to his stall at the busy Ketu bus stop. While card sales dropped during the six-week ban on onboarding new customers imposed on fintechs by the central bank, card sales have returned to similar levels before the ban. “Customers need the cards, and the fintechs need us to sell the cards. I don’t see this relationship ending anytime soon,” he said. Exclusive: How a six-week freeze on customer onboarding slowed card demand for OPay and Moniepoint Have you got your early-bird tickets to the Moonshot Conference? Click this link to grab ’em and check out our fast-growing list of speakers coming to the conference!
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