African fintech Moniepoint has gotten not just anyone but Visa as a new investor. This business banking and payments platform has already confirmed the investment from the global payments giant. This ties in with both companies’ desire to maintain financial inclusivity and support SMEs’ growth across Africa. Today, fintech is working with many firms from the tourism and casino industries to provide them with payment services.
Sources claim that the fintech has received 10 million dollars in funding from Visa. This has attracted the attention of many investors with whom it is also in talks. Meanwhile, Moniepoint declined to comment on the size of Visa’s check or interest from other investors.
This fintech processes more than two million transactions every month. Its services are used by most private companies and corporations, but recently, the number of entertainment industry firms among Moniepoint’s clients has been growing. Thus, several land-based gambling establishments have already signed the service agreement, but the online sector shows stable growth. Casinos and bookmakers that accept players via the Internet actively use Moniepoint’s services to accept customer payments.
This is not surprising because the sphere of online gambling is actively growing, and the number of users is increasing. The game Plinko has become especially popular, which attracts users with large potential winnings and exciting gameplay. The game is available to everyone: almost everyone can find and download real money plinko casino game. Replenishing the balance for the money game can be done quickly and conveniently with the help of the Moniepoint payment solution.
Generally speaking, the rapid growth of fintech we are seeing today started during the Central Bank of Nigeria’s cashless campaign in early 2023. It continues, with payments growing by about 25% every three months, which is solid.
However, Moniepoint only accounts for a fraction of the country’s digital payments market. Electronic transfers based on the NIP instant payment network, comparable to India’s UPI and Brazil’s Pix, dominate the market, accounting for about 90% of the total payment mass. However, Moniepoint works with this channel and mobile agents. Given the situation, Visa’s investment underscores the position and potential of fintech in Nigeria’s card value chain as a major issuer and acquirer.
This strategic partnership is beneficial to the payments ecosystem?’s development. And one of the ways it is developing is by introducing a contactless payment system. Interestingly, the Central Bank has indicated the need to incentivize contactless services to improve accessibility and micro-transactions. This, in turn, would boost business growth, especially in the tourism and casino sectors, because today, Africa lags behind other jurisdictions in this regard.
However, privacy, security, and trust issues must be addressed before contactless payments become active. Once these are resolved, contactless payments could significantly increase transaction volumes, expected to surpass any other transactions in the country.
Moniepoint is in a prime position to lead this transition in Nigeria. It can use Visa’s Cybersource system to increase transaction transparency. The company has ambitious plans—it intends to expand beyond the country into the domestic African market first before spreading further afield. To do so, it will use Visa Direct.
After its investment, Visa will join Moniepoint’s board of directors. The company has a strong track record of investing in African payment infrastructure. And Visa is positioning Moniepoint as the latest example of its long-standing commitment to advancing the digital economy in Africa.