Fintech payment solution serving Nigerians
Money is a universal need for both individuals and businesses. In the economy, money functions as a medium of exchange or as a good that buyers and sellers exchange for products. In interactions, money connects strangers. Through money we also build and break. It helps us fulfill our wishes and personal desires.
Over the years, our interaction with money has changed. There has been an increase in financial institutions that help money management, facilitate transactions and help store them in the bank. Technology has also made money easier for us. Money is now digital, and with it our lives have never been more convenient.
However, in Nigeria’s financial industry, customers are still largely undervalued and undervalued. For example, access to services is a problem in rural areas; even city dwellers cannot get certain financial services, including loans, due to regulations governing the banking sector. This means that many who use the banks’ financial services are dissatisfied.
The gaps left by these and other issues are currently being filled by fintech companies in Nigeria. The industry has the potential to be a bright spot for the country’s economy. The market has grown significantly as fast-thinking and creative companies seek to capture market share by capitalizing on significant unmet claims in the traditional banking sector. As a result, the payments environment is becoming more cohesive and at the forefront of innovation. Gains from the payments industry will help increase financial inclusion and the international money transfer market.
Top Fintech companies in Nigeria have seized the opportunity to offer the general public enhanced financial services and tools. In a leading position are fintech solutions such as Paystack, Aella Credit, PiggyVest, Renmoney, Interswitch, Kuda Bank and many more. These solutions help users digitize their savings, take loan applications and credit payments, make investments and offer fixed, flexible, targeted and automated savings opportunities.
It is also interesting to note that Fintech companies are also leveraging an agency banking model that brings financial services closer to consumers. This creates indirect jobs for these agents. The start-ups with the most agents are MoMo, OPay, TeamApt, Paga and CrowdForce.
In addition, MoMo PSB, with its MoMo Bill Payment service, deserves recognition as a leader in fintech solutions, offering top-tier online payment services to the country’s unbanked and underserved population. It offers a simple, secure and affordable way to ensure that all bills are paid, anywhere, anytime. The goal of this Bill Payment solution is to improve financial inclusion by providing an easy way for people to move money, access financial information and make bill payments and decisions.
According to a 2018 Nairametrics article, despite having 21 commercial banks, 942 microfinance institutions and various fintech and mobile money providers, the adult population in Nigeria is underbanked.
Speaking on these figures, the Managing Director, MoMo PSB, Usoro Usoro said: “Many Nigerians lack access to financial services, including bank accounts, even if they have phones. Only 40 million of the 80 million individuals in our country have accounts. It follows that anyone in this nation with a standard phone will be able to get a bank account. And that attracts individuals to the financial industry. Through MoMo Bill Payment, MoMo PSB has taken steps to make life simpler and easier for its consumers by offering solutions that addresses their pain points, especially for excluded groups such as women, rural and northern Nigerians.
Due to the daily influx of fintech companies offering cutting-edge financial services via mobile apps and USSD codes, the market is becoming more and more competitive. In line with this, consumers now have a wide range of options to choose from. Users can now make payments from around the world, including in Africa. They can easily make bill payments, accept payments in many currencies and engage in financial services, such as account creation, remittance services and consumer payments.
Ayoade Odusanya writes from Lagos via [email protected]
