In the ever-evolving world of fintech, Nigeria is witnessing a transformation. The month of July saw OPay, PalmPay, and Over Wallet emerge as the most favored fintech apps, as per StatiSense’s report. Citing data from SimilarWeb, an NYSE-listed digital intelligence firm, the report also mentioned that Newcredit, OKash, Palmcredit, OPay Business, FairMoney, Moniepoint, and EaseMoni rounded up the top 10.
How Restrictions Boosted Fintechs
- 2023 marked a significant turn when the Central Bank of Nigeria (CBN) clamped down on cash limits, pressurizing the ICT infrastructure of commercial banks.
- Fintechs like PalmPay, Opay, and Moniepoint thrived amidst the chaos, seeing a spike in customer sign-ins and engagement.
- Poor service delivery from many commercial banks persisted until the CBN extended its cashless economy transition deadline to December 2023.
Fintechs and Their PoS Dominance
A BusinessDay report from July 2023 threw light on how Chinese fintech began reigning over Nigeria’s PoS sector:
- OPay, leading with an impressive 563,262 agents.
- PalmPay followed closely with 500,000 agents.
- Cumulatively, a massive 2 million banking and mobile money agents were reported by the 2023 State of the Industry Report on Mobile Money.
Together, OPay and PalmPay controlled over 50% of Nigeria’s agency banking market. Furthermore, with Statista pegging Nigeria’s digital payment market at $17 billion for 2023, these fintech giants are primed to capitalize on a considerable chunk. By mid-2023, OPay celebrated a significant accomplishment by reaching 30 million customers, a notable feat given its sub-five-year presence in Africa’s most robust economy.
Opay and Kuda’s Global Recognition
CNBC’s Global Fintech List
Two noteworthy Nigerian fintech startups, Opay and Kuda, earned spots on CNBC’s list of top 200 global fintech firms. In collaboration with Statista, the selection criteria involved a rigorous evaluation of:
- Total number of users.
- Transaction volumes.
From the hundreds of nominations received, Statista crafted a scoring model, allocating 40% weightage to general KPIs and 60% to segment-specific KPIs. Consequently, companies excelling in their market segments earned their rightful place on the list. The fintechs were categorized into nine sections including Neobanking, Digital Payments, and more.
Kuda: Nigeria’s Neobanking Pride
Launched in 2019, Kuda has become a beacon of fintech innovation. Features it boasts include:
- Mobile Banking through its app.
- Budgeting and spending tracking.
- Instant transaction notifications.
- Absence of basic banking fees.
- Savings tools.
- Enhanced security protocols like biometric authentication.
Kuda has successfully cemented its place as the seventh most valuable bank in Nigeria’s financial arena, surpassing six million customers by July 2023.
Opay: A One-stop Digital Payment Solution
Opay, since its inception in 2018, has been on a relentless pursuit of fostering financial inclusion in Nigeria. Some of its services encompass:
- Mobile Money Transfer.
- Bill payments.
- Ride-hailing and delivery through partnerships.
- E-commerce platforms.
- Investment opportunities.
- Loan services.
With over 35 million registered app users and half a million agents in Nigeria, Opay stands tall in Nigeria’s fintech domain.
Future of Fintech
As the world gravitates towards increased digital adoption, the digital payments industry, valued at a colossal $54 trillion by JP Morgan, is only poised for further growth. Fintech firms like Opay and Kuda are at the forefront of this transition, leveraging technology to offer efficient and novel financial solutions to millions.