Moniepoint has carved a territory for itself by providing digital financial services to individuals and businesses.
Tosin Eniolorunda and Felix Ike. Image Credits: Moniepoint
Global payments hegemon, Visa, has invested over $10 million in its Nigerian unicorn counterpart in a move that emphasizes increasing investor confidence in Africa’s digital financial services. This investment comes off the back of a $110 million funding round that was spearheaded by Development Partners International (DPI) and supported by Google’s Africa Investment Fund.
The partnership lends credence to a shared ambition between both companies to expand financial inclusion across Africa where a significant percentage of the population remains untapped by the formal banking system. Moniepoint has carved a territory for itself by providing digital financial services to individuals and businesses. Its digital platform offers online bank accounts, low-collateral loans, and point-of-sale (POS) terminals, processing over 1bn transactions monthly with a total payment volume exceeding $22bn.
“We’re present in Nigeria today, leading the chart in merchant acquiring and consumer banking. With Visa as our investor, we can strategically collaborate to continue to grow the payment ecosystem and expand to more countries, which is a key goal for us.”
“This investment marks an important milestone in our collective pursuit of advancing financial inclusion and shaping the future of digital payments while fostering SME growth across Africa” Moniepoint’s CEO Tosin Eniolorunda said in a statement.
The fintech startup has expressed intentions to spread its operations across Africa, with Kenya being a potential target. A regional expansion strategy falls in step with Moniepoint’s long-term vision of promoting financial inclusion across the continent. This long-term vision has been a major factor in attracting investment from firms like DPI which has a reputation of investing in Africa’s technological landscape.
Moniepoint recently joined the ranks of African “unicorns” like Interswitch, Flutterwave, and Wave, all of which are privately owned startups valued at over $1 billion. All the mentioned companies have addressed specific challenges in their target markets, playing their part in developing Africa’s digital financial scenery. For example, Flutterwave has focused on building API-driven payment solutions, while Wave has concentrated on mobile money services in Francophone AfricaVisa’s investment in Moniepoint comes after a period of significant growth for the Nigerian fintech. The company profited in no great measure from Nigeria’s currency redesign in February 2023, when cash shortages at traditional banks drove demand for alternative digital payment solutions. Moniepoint’s accessible platform proved critical in facilitating transactions during this period, significantly bolstering its user base.
‘Visa’s investment in Moniepoint is the latest example of our long-standing commitment to advancing digital economies in Africa. We will enable even the smallest businesses to thrive through innovative payment and software solutions that allow SMEs to scale and open new revenue opportunities while streamlining their operations.” said Andrew Torre, regional president, Central and Eastern Europe, Middle East and Africa at Visa.
Experts forecast that Moniepoint’s expansion will likely involve strategic acquisitions, allowing it to leverage its existing platform to scale across different regions. The partnership with Visa is expected to further enhance Moniepoint’s capabilities by leveraging Visa’s expertise in global payments infrastructure and network. This collaboration could lead to the development of new products and services, further expanding access to digital financial services for individuals and businesses across Africa.
