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Visa has joined African fintechMoniepointas a new investor . The business organisation banking and payment political platform substantiate to TechCrunch that it meet a “ strategic investment ” from the global defrayal giant as both companies wait to drive financial inclusion body and corroborate the growth of small and intermediate - sized enterprisingness ( SMEs ) across Africa .
Sources close to the sight say the fintech — whichannounced a $ 110 million investmentlast October , meet over $ 10 million from Visa . The fintech , whose Series C now exceeds $ 120 million , is reportedly in talks with other investor and may attract more funding in the come months , all while maintaining its billion - dollar valuation , source say . Moniepoint declined to comment on the size of it of Visa ’s assay or stake from other investors .
Moniepoint provides businesses and individual with banking accounts , credit , payments , and other fiscal tools through an app and a electronic web of federal agent . The fintech now processes over 1 billion transactions monthly , with total payment loudness reach $ 22 billion — a growth ofover 25 % in under three month . Its rapid salary increase commence during Nigeria ’s Central Bank cashless drive in former 2023 and has continued steady , put it as an of import musician shaping the future of digital payments in the country .
Moniepoint has just a fraction of the total market . Nigeria ’s digital defrayal grocery span multiple channels , including electronic transfers , automatic teller machine , POS gimmick , peregrine agents , and web payments . In 2023 , businesses and consumers fill out transactions deserving around $ 400 billion , according to thecountry ’s interbank payments switch . Electronic transfers , powered by the instant payments internet NIP — like to India ’s UPI and Brazil ’s Pix — overlook the market , report for nearly 90 % of these dealings , harmonize to data from Stears . Other channels , such as nomadic agent , cash machine , and detail - of - sale system , train far behind .
While Moniepoint run across most of these channel , Visa ’s investment highlights the fintech ’s position and potential in Nigeria ’s plug-in value Sir Ernst Boris Chain as both a major issuer and merchant bank .
“ We ’re present in Nigeria today , leading the chart in merchant acquire and consumer banking , ” CEO Tosin Eniolorunda ( pictured above , left , with co - beginner Felix Ike ) state TechCrunch . “ With Visa as our investor , we can strategically cooperate to continue to farm the payment ecosystem and expand to more countries , which is a central goal for us . ”
One way both companies will look to “ grow the defrayal ecosystem ” is by introducing contactless payments , Eniolorunda said . “ The central bank has bespeak the penury to drive contactless services to improve accessibility and conduct micro - transactions . So these are some thing that we expect from the partnership . It ’s progress in the correct direction . ”
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Nigeria ’s Central Bank show its late intention to drive contactless payment adoption with draft guidelines for transaction limits in 2023 . However , implementation will look on readable regulations and resolving issues related to privacy , security , and reliance . Once addressed , contactless defrayal could importantly boost transaction volumes and arguably outpace other defrayment method in the body politic .
Globally , Visa notes thatcontactless plug-in custom surpasses mobile walletsin many mart . Moniepoint is in that sweet stain to pass this changeover in Nigeria by offer up contactless - enabled defrayment terminals to commercial enterprise and chip cards to individuals , setting the stage for further adoption .
On the other hand , Moniepoint will leverage Visa ’s Cybersource system to gain good visibility into transactions . to boot , it design to integrate with Visa Direct for remittances and money transportation as it looks to blow up into market within and outside Africa .
Visa has a history of investing in Africa ’s payment substructure , backing players likeInterswitch , Flutterwave , Paystack , andJUMOover the past decade . With Moniepoint , Visa is making its entry into Nigeria ’s SME market , aim to digitalise payments for them and part in hopes of increasingits contribution of the country ’s posting dodging market . Currently , it lags behind Interswitch ’s vitality and Mastercard in posting . The latter two have also started create inroads in the tap - to - pay chance .
“ Visa ’s investiture in Moniepoint is the latest example of our long - standing committal to advancing digital economic system in Africa , ” said Andrew Torre , regional United States President , Central and Eastern Europe , Middle East and Africa at Visa . “ We will enable even the smallest businesses to thrive through innovative defrayment and software solutions that provide SMEs to scale and spread new revenue opportunities while streamlining their operation . ”
Visa will conjoin Moniepoint ’s board following its investment funds . Other prominent backers in the fintech include Development Partners International , Google ’s Africa Investment Fund , QED Investors , Lightrock , and British International Investment ( BII ) , among others . We also reported that an early backer , Oui Capital , of late return its first fundafter investment in the African unicorn six years ago .
