Visa and Google are among a plethora of investors in Nigeria-headquartered company Moniepoint amid growing interest in Africa’s fintech and payments scene.
In a press release, Moniepoint stated that Visa is supporting its ambitions around financial inclusion and expanding access to financial services. Estimates put the number of underbanked people across the African continent at over 350 million.
Though Moniepoint has not disclosed the scale of its recent investments or the exact contribution made by each participant it has revealed the company’s involved.
Visa was joined by Google’s Africa Investment Fund, Development Partners International, Verod Capital, Lightrock, QED Investors, Novastar Ventures, British International Investment (BII), FMO (the Dutch entrepreneurial development bank), Global Ventures and Endeavor Catalyst.
“We are thrilled to announce Visa’s investment in Moniepoint. Visa’s backing is a strong endorsement of our vision to digitise and support African businesses at scale,” said Tosin Eniolorunda, Founder and Group CEO of Moniepoint Inc.
Though Africa has an aforementioned, and significant, issue with underbanking, the continent has emerged as a prominent focal point for fintech innovation. Underbanking and the lack of penetration on debit and credit cards, as seen in Europe, may have actually accelerated this.
Demand for alternative payment methods (APMs) and instant payment methods has taken off significantly in Africa, alongside Latin America, more so than in the more established financial markets of Europe and North America.
Kenya’s M-Pesa instant payment method is a notable example, adopted across eight different African countries. In Moniepoint’s founding nation of Nigeria, the NIBSS Instant Payment (NIP) has proven very popular, with processed transaction value standing at NGN 476.89trn (€291bn) in H1 2024.
Indicative of changing trends, the Central Bank of Nigeria stated that “Nigerians now prefer digital methods for making payments, reflecting a shift away from traditional cash-based transactions”.
Amidst these changes, Moniepoint’s target sector is Nigerian SMEs, with financial inclusion a long term company goal. The firm states that it wants to provide SMEs with tools that can be adopted in an ‘increasingly digital economy’ while also driving economic growth in Africa, citing that 83% of employment across the continent remains in the informal economy.
Visa too has clearly taken note of changing trends in Africa. In 2022, the company made a pledge to invest US$1bn in Africa by 2027 to scale operations, deploy technology and deep collaborations with local partners, including fintech startups.
Eniolorunda added: “Visa’s expertise in global payments and Moniepoint’s proven ability to serve African businesses make this partnership an exciting opportunity in shaping the continent’s economic future even as we pave the way for a more inclusive and dynamic financial ecosystem.
“We are delighted to be joining forces with Visa to enhance the digital payment infrastructure, expanding financial services, and fostering innovation in Africa.”