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Paystack Launches Seamless Transfers Payment Feature For Kenyan Businesses

By
Ojukwu Emmanuel
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0
Paystack

Paystack, a leading African payment service provider known for enabling secure, seamless online and in-person transactions, has introduced a new feature for its Kenyan merchants, “Paystack Transfers”.

This feature allows businesses to transfer funds effortlessly to any Kenyan bank account, M-PESA wallet, Paybill, or Till account- directly from their existing Paystack Dashboard, where they also manage incoming payments. Already popular among Kenyan businesses for its M-PESA, card, and Apple Pay integrations, Paystack aims to simplify money transfers with this launch.

“We’re committed to making financial management as straightforward as possible for businesses,” the company said in a statement.

Key Features of Paystack Transfers

1. Unified Payment Management

Businesses can now manage both payments and transfers in one place, avoiding the need to juggle multiple platforms. Whether it’s for supplier payments, customer reimbursements, or payroll, transfers can be done directly from the same dashboard, saving time and reducing the risk of errors.

2. API-Driven Customization

For businesses with unique requirements, the Paystack Transfers API offers customizable solutions. Using this API, businesses can build specific transfer workflows, such as setting up automated balance checks and receiving status updates through webhooks.

3. Bulk Transfers

With bulk transfer capabilities, businesses can upload a spreadsheet of recipients and process multiple transactions with a single click, significantly streamlining payroll or mass payments to vendors.

4. Granular Permissions for Security

Paystack’s permissions system allows businesses to control who on their team can authorize transfers, enhancing account security while maintaining flexible access for transaction management.

5. Round-the-Clock Availability

Transfers are processed 24/7, including weekends, ensuring recipients get real-time access to funds without delays.

How businesses are using Paystack Transfers

It is interesting to note that several Kenyan businesses are already leveraging Paystack Transfers to optimize financial operations:

Supplier Payments: Small and large businesses alike are using the feature to handle supplier payments smoothly.

Tech Startups: Some startups use the APl to build customer-focused payout systems, such as lending or savings platforms that provide fast, easy-to-use payout experiences.

Marketplaces: Operators of online marketplaces rely on Paystack to manage incoming buyer payments and automated seller transfers, streamlining, cash flow for marketplace operators.

Payroll Processing: Payroll firms use the platform to manage employee payments efficiently, reducing administrative overhead.

With the launch of Paystack Transfers, Kenyan businesses now have a powerful new tool to enhance operational efficiency and financial flexibility. Paystack’s latest feature reinforces its commitment to supporting Africa’s growing digital economy by providing adaptable and comprehensive financial solutions.

Nigeria’s Fintech Giant Moniepoint Crosses $1B Valuation

By
Paul Ugbede Godwin
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0

In a landmark achievement for the African fintech sector, Nigeria’s Moniepoint has officially crossed the $1 billion valuation mark, joining the prestigious league of unicorns. This milestone was reached following a substantial $110 million funding round led by Development Partners International (DPI) and supported by Google’s Africa Investment Fund.

Moniepoint, which began its journey in 2015, has been at the forefront of revolutionizing digital financial services in Nigeria. The company has been instrumental in addressing the needs of a significant portion of the Nigerian population that remains unbanked, providing them with accessible digital solutions. These solutions range from digital bank accounts and low-collateral loans for enterprise clients to point-of-sale (POS) terminals that cater to small merchants, a demographic often overlooked by traditional banking institutions.

The fintech giant’s rise to unicorn status is not just a testament to its robust business model but also reflects the growing investor confidence in Africa’s fintech ecosystem. Despite a regional slowdown in tech funding, Moniepoint’s success story underscores the potential and resilience of African startups.

Moniepoint’s platform experienced a surge in growth following Nigeria’s currency redesign in February 2023, when traditional banks were overwhelmed by the demand for cash. During this period, Moniepoint’s digital solutions facilitated millions of transactions, solidifying its user base and proving its indispensability in the financial landscape of the country.

Fintech companies are also investing in advanced security technologies such as encryption, multi-factor authentication, and secure communication protocols to safeguard transactions and customer information. Regular security audits and penetration testing are conducted to identify and address vulnerabilities.

One of the primary measures is the adoption of robust cybersecurity frameworks. The Central Bank of Nigeria (CBN) has issued comprehensive guidelines that include the Risk-Based Cybersecurity Framework and Guidelines for Deposit Money Banks and Payment Service Providers, as well as similar frameworks for Other Financial Institutions (OFIs). These guidelines are designed to strengthen the cybersecurity defenses of financial institutions and ensure the safety of consumer data.

To combat fraud, fintechs are leveraging machine learning and artificial intelligence to detect and prevent fraudulent transactions in real-time. These technologies analyze patterns and flag unusual activities, helping to prevent fraud before it occurs.

Furthermore, fostering a culture of cybersecurity awareness is essential. Fintech companies conduct regular training for their employees and educate their customers on safe online practices. Collaborations with regulatory bodies and other stakeholders in the financial ecosystem are also crucial for a unified approach to cybersecurity.

Looking beyond its established dominance in Nigeria, Moniepoint is setting its sights on expansion across Africa. With markets across the continent at varying levels of financial development, the company’s strategic approach to expansion will likely involve a mix of organic growth and potential acquisitions, with Kenya being a possible next target.

The significance of Moniepoint’s achievement cannot be overstated. It joins a select group of African ‘unicorns’ such as Interswitch, Flutterwave, and Wave, redefining financial access and services for millions across the continent. This new funding will undoubtedly fuel Moniepoint’s growth trajectory as it continues to build an all-encompassing platform for African businesses of all sizes, encompassing digital payments, banking, foreign exchange, credit, and business management tools.

MTN Nigeria’s MoMo PSB Launches Remittance Service For Cross-Border Money Transfers

By
Ojukwu Emmanuel
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0

MTN Nigeria’s Fintech subsidiary, MoMo PSB, has launched a new remittance service, enabling customers in Nigeria to send and receive money across multiple African countries.

With the launch of this service, MoMo PSB users can now send money to 13 African countries which include; Benin Republic, Cameroon, Congo Brazzaville, Côte d’Ivoire, Democratic Republic of Congo, Gambia, Liberia, Malawi, Rwanda, Sierra Leone, Togo, Uganda, and Zambia. Additionally, customers in Nigeria can receive funds from South Africa, Rwandá, Uganda, Zambia, the Democratic Republic of Congo, and Mauritius.

This service simplifies cross-border transfers and empowers, broadedbunf financial access and reducing trade barriers across the continent. A minimal 3% transaction fee is applied to outbound transfers, while incoming transactions are free for recipients.

To access the remittance service, users can log into their MoMo app and select “Transfer to Africa,” or dial 6711*3# and enter the recipient’s phone number with the country code. Customers needing higher transaction limits can upgrade to Tier 2 or Tier 3 via the MoMo app or USSD, linking their BVN for an enhanced experience.

In a similar stride towards meeting the growing demand for efficient cross-border financial solutions, the fintech also launched an innovative Gift Card service that allows users to purchase e-vouchers directly from their MoMo accounts, using it for several international transactions, including online shopping and service payments.

By leveraging MoMo’s, robust digital infrastructure, users can now enjoy a seamless payment process, eliminating the complexities often associated with the conventional methods of processing international payments.

Speaking on these developments, the acting Chief Executive Officer, of MoMo PSB, Phrase Lubega highlighted the service as a significant milestone toward economic empowerment and financial inclusion across Africa.

In his words,

“This is a significant milestone towards advancing economic empowerment, reducing trading barriers, and bridging the financial gap in African nations. It’s an exciting time for us at MoMo PSB as our customers can easily, and quite swiftly, make transactions across 13 African countries, and use our Gift Card service for international payments.

Reaffirming MoMo’s mission, he added, “While this is a huge step, we remain committed to delivering quick, easy, user-friendly financial services, breaking more barriers to ensure our customers can enjoy the ease of transacting and doing business across more countries. I am confident that these new services will significantly enhance the customer experience and demonstrate our commitment to continually pushing the boundaries of financial inclusion.”

Licensed in 2022 by the Central Bank of Nigeria (CBN), to operate as a payment service bank, MTN MoMo’s growth in the country has been remarkable. According to reports, in August 2024, MTN Nigeria reported that active wallets on its MoMo Payment Service Bank (PSB) reached 5.5 million in the second quarter of this year.  

The company’s mobile money business bounced back after a 9% decline in wallets it recorded in Q1 2024 due to the impact of the National Identification Number (NIN) requirement for KYC validation. This growth in mobile money users impacted the company’s fintech revenue, which grew by 11% for the six months and a 22.2% growth in Q2. MTN’s fintech revenue jumped to N48.6 billion in half-year 2024 from N43.6 billion recorded in the same period last year.  

With the recent advancements following the launch of cross-border payment service, MoMo PSB reaffirms its commitment to financial inclusion, enabling users to support loved ones, facilitate trade, and contribute to economic growth in Nigeria and across Africa.

A Case Study on the $20M Compromised US Government Wallet

By
Paul Ugbede Godwin
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0

In a recent turn of events that has sent ripples through the cryptocurrency community, a wallet linked to the US government was reportedly compromised, resulting in the loss of $20 million worth of stablecoins and Ethereum. This incident, as reported by the crypto intelligence firm Arkham, highlights the persistent challenges and risks associated with securing digital assets.

The compromised wallet, which was associated with funds seized from the infamous 2016 Bitfinex hack, was subjected to unauthorized transactions that drained significant amounts of Tether (USDT), USD Coin (USDC), aUSDC, and Ethereum (ETH). The breach was not just a financial setback but also a stark reminder of the sophisticated tactics employed by cybercriminals in the digital age.

The Arkham report indicates that the hacker executed four transactions to access the stolen funds, with the largest transaction involving aUSDC tokens valued at $13.7 million. The funds were then consolidated in a wallet before being sent to Binance, sparking suspicions of an exploit. The rapid response of the authorities, however, led to the recovery of nearly $19.3 million of the lost assets within 24 hours of the alleged security breach.

This incident underscores the importance of robust security measures and the need for continuous vigilance in the management of digital wallets, especially those holding substantial amounts of assets. It also raises questions about the adequacy of current security protocols and the necessity for advanced protective mechanisms to safeguard against such vulnerabilities.

The implications of this breach extend beyond the immediate financial loss. It serves as a critical lesson for government entities and organizations that are increasingly incorporating cryptocurrencies into their operations. The need for enhanced security strategies, including multi-signature wallets, time-locked transactions, and regular security audits, has never been more evident.

Here are some essential tips to ensure the safety of your crypto wallet:

Opt for wallets with a strong reputation and positive reviews. Whether it’s a hot wallet (online) or a cold wallet (offline), selecting a trustworthy provider is the first step in securing your assets.

Create complex passwords that are difficult to guess. Use a combination of letters, numbers, and symbols, and avoid using the same password across different platforms. Enable 2FA on all your accounts to add an extra layer of security. This could involve SMS codes, email confirmations, or authentication apps.

Keep your wallet software updated to protect against the latest security threats. Developers regularly release patches and updates to address vulnerabilities. Avoid using public Wi-Fi when accessing your crypto wallet. Unsecured networks can be a gateway for hackers to access your sensitive information.

Store your private keys offline in a secure location. This could be a physical safe or a secure offline storage device like a hardware wallet. Regularly back up your wallet to protect against data loss. Ensure that your backup is stored in a secure location separate from your primary wallet. Be vigilant about phishing scams. Never click on suspicious links or share your private keys with anyone.

As the investigation continues, the cryptocurrency community will be closely monitoring the situation, seeking to understand the methods used by the attackers and the steps taken to prevent future occurrences. The resilience of blockchain technology is not in question, but the security of the wallets that interact with it certainly is.

The Arkham intelligence report serves as a timely reminder that in the ever-evolving landscape of digital finance, vigilance, and innovation in security are paramount. As we move forward, the lessons learned from this incident will undoubtedly contribute to the development of more secure and resilient systems for managing digital assets.

Kenya Makes Progress As A Leading Startup Investment Destination in Africa

By
Ojukwu Emmanuel
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0

In recent years, Kenya has shown remarkable resilience and progress in attracting start-up funding, aligning closely with the overall funding dynamics across the African continent.

According to a report by Africa: The Big Deal, a notable trend emerged when examining Kenya’s standing, relative to its ‘Big Four’ counterparts, (Nigeria, South Africa, and Egypt), which collectively attracted over 80% of Africa’s start-up funding since 2019. Despite these competitive peers, Kenya’s position is both remarkable and promising, as the country’s thriving startup ecosystem has in recent times dominated Africa’s investment landscape.

Kenyan startups raised the most funding of any African country from January to October in 2024. This surge in capital inflow is a continuation of an impressive trend that began in 2023. For two consecutive years, Kenya has secured the leading spot in terms of start-up funding on the continent, attracting 27% of all funds in 2023 and 31% in 2024 year-to-date. Recall that in January this year, the East African country reportedly surpassed Nigeria as the primary recipient of startup funding in 2023, securing an impressive $800 million.

The growth in funding for Kenyan startups over the past year has reportedly been driven by debt funding to startups in the energy industries while large deals also skew the data. For example, only two startups in the country, M-Kopa and Spiro, collectively raised $101 million in debt funding.

This is an impressive feat for a country that represents approximately 4% of Africa’s population and GDP, ranking seventh in nominal GDP. Since 2019, Kenya has consistently held either the first or second position in start-up funding, and its 31% share this year marks, a record high for the period.

A closer look at Kenyan start-ups raising substantial capital further highlights this trend. The number of ventures securing at least $1 million has maintained a steady 20% share over recent years, and in 2023 and 2024 year-to-date, Kenya has ranked second in this category-following Nigeria in 2023 and Egypt in 2024. Kenya’s performance is particularly impressive given the economic climate of recent years.

During the “funding heatwave” from mid-2021 to mid-2022, Kenya attracted 18% of the $6.3 billion raised across the African continent, ranking second to Nigeria, albeit at a significant gap, as Nigerian start-ups secured nearly twice the funding. However, as the global funding landscape shifted into a “funding winter” from mid-2022 onward, Kenya emerged as the leader, capturing 26% of the funding, outpacing Nigeria by 1.5 times and taking the top spot, with Egypt following closely.

In terms of the number of ventures raising $1 million or more, Kenya’s trajectory has been similarly positive. It rose from third place (18%) during the funding heatwave to second (20%) during the recent period, while Nigeria held onto the lead. This underscores Kenya’s resilience and adaptability in a challenging funding environment, solidifying its role as a key player in Africa’s tech ecosystem.

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