Financial service delivery is gradually merging with emerging technologies in Nigeria. In this article, we talk about the top 10 best FinTech companies in Nigeria in 2022.
In Nigeria, the “financial technology” that is already well known is being made by combining the supply of financial services with new technologies. Here, we provide a thorough introduction of fintech in Nigeria before talking about the top 10 fintech firms operating there as of 2022.
FinTech did not exist, or, to put it another way, there was a significant technological gap in the supply of financial services a few years ago. But in the financial industry today, things are done differently. Almost all business owners are discussing fintech.
Look at LinkedIn profiles; many of them would have titles like “FinTech Expert.” As a result, many people have questions about this phrase as a result of this. What is fintech in reality?
What is FinTech?
Financial technology, or FinTech, is a sector of the economy made up of several businesses that use cutting-edge technology to improve the effectiveness and efficiency of financial services.
Let’s look at FinTech in this way: It is merely a technical tool that supports financial services and streamlines their delivery.
FinTech firms are businesses that use software to offer financial services to the general population. These businesses are not constrained by things like outdated operating systems, unlike the traditional banking system.
FinTech companies are quick and adaptable, capable of coming up with novel ideas, and able to collaborate with information and technology industry professionals.
We will soon talk about the top 10 FinTech businesses currently operating in Nigeria.
FinTech in Nigeria
Nigerian banking has evolved over time. As banks compete to provide their customers with the greatest service, advances have been advanced even further.
If we were to be honest, we would see that there are still certain holes that need to be addressed. To provide consumers with the highest level of satisfaction with the supply of financial services, much work remains.
The majority of Nigerians who use banking services are underserved. For instance, there are fewer services available when you travel to rural areas, and due to regulations governing the banking industry, even people residing in metropolitan areas cannot access certain financial services, such as loans.
Many people in the country who utilize the financial services provided by the banks are upset by the poor user experience.
FinTech companies in Nigeria are currently looking to fill the gaps left by these and other factors. The leading FinTech firms in Nigeria have seized the chance to create better financial tools and services for the general public.
Nigeria’s Fintech market is still developing. However, they have so far been successful in coming up with some original concepts that have benefited the general public. Examples include addressing the problem of rigid savings, proposing quick loan strategies and investments, offering online payment gateway and seamless payments, among other things.
List of top 10 best FinTech companies in Nigeria in 2022
Here is a list of the top 10 best FinTech companies in Nigeria:
- Flutterwave
- Paystack
- Accelerex
- PiggyVest
- Paga
- Interswitch
- E-tranzact
- Carbon Paylater
- Remita (SystemSpecs)
- Kuda Bank
From 2014 to 2019, the FinTech industry in Nigeria generated more than $600 million in funding.
In 2019 alone, the industry attracted $122 million (25% of the $491.6 million generated by African Fintech startups).
1. Flutterwave
Who at this time hasn’t heard of Flutterwave, especially after their recent achievements? Olugbenga Agboola and Iyinoluwa Aboyeji launched the African FinTech company in 2006, and it has slowly grown in reputation over time.
One of Nigeria’s top FinTech companies, this software startup enables clients to send, receive, and pay invoices. It has collaborated with more than 40 banks in different African countries and handled 100 million transactions.
With the help of strong connections, this leading Nigerian fintech company plans to link African businesses with those on other continents. To introduce the consumer payment services Alipay and GetBarter in 2019, Flutterwave partnered with Visa.
Additionally, this Nigerian FinTech business established a collaboration with Binance to enable Nigerians to purchase Bitcoins using the naira.
Flutterwave was praised for raising up to $170 million, valuing it at more than $1 billion. The Nigerian payment startup has raised at least $225 million and obtained funds totaling more than $200 million.
The company followed up on the news that it was valued at over $1 billion by making an announcement indicating that Flutterwave is working with PayPal to make it possible for businesses in Nigeria and other African countries to accept payments.
“This removes the barrier for African merchants to take PayPal because once you have @theflutterwave for business, PayPal is now one of your payment methods,” said Flutterwave CEO Olugbenga Agboola on Twitter.
Both an iOS and an Android mobile app are available from Flutterwave. Barter and Rave, two widely used financial service apps, were also created by this company.
Over 280,000 firms operate on the Flutterwave platform, which has headquarters in San Francisco and Lagos. This prestigious Nigerian fintech business presently has operations in 20 nations across Africa.
2. Paystack
On our list of the top 10 FinTech companies in Nigeria for 2022, Paystack is ranked second. The business is a well-known and expanding provider of financial technology in Nigeria.
Paystack was established in 2015 by Ezra Olubi, the CTO, and Shola Akinlade, the CEO, with the belief that while starting a business is challenging, receiving payment shouldn’t be.
For both organizations and consumers, Paystack improves consistency and ease of use for online payments. Users can create payment pages and accept payments using invoices thanks to the Paystack online payment gateway.
Your company may accept payments from customers using Visa, Verve, or Mastercard from anywhere in the world by using Paystack. As a result, it ranks among Nigeria’s best Fintech firms.
Paystack has not fewer than 17,000 commercial clients, including Betway, MTN, IrokoTV, Domino, and Taxify, making it one of the top FinTech businesses in Nigeria. Along with two other Nigerian businesses, it has been included among the top 250 FinTech firms worldwide.
3. Accelerex
As it continues to make significant progress toward advancing e-payments across Africa, Accelerex is another notable fintech in Nigeria to keep an eye on in 2022. The business, which started operations in 2013, has maintained its success by anticipating and satisfying clients’ need for quick and secure fintech products, solutions, and services.
Regarding the value of transactions completed, the business has maintained a leading position among Payment Terminal Service Providers in Nigeria since 2019. Over 90,000 merchants are supported across the 36 states of Nigeria, supporting 95% of the nation’s banks.
In Nigeria, Accelerex is the name that people associate with trustworthy, cutting-edge electronic payments. With plans in place to expand to additional African nations before the year is out, it gave rise to the brand’s operations expanding to Ghana, Kenya, and the DR Congo.
E-payment and business procedures are seamless thanks to Accelerex’s wide range of products and solutions. One of these is the Accelerex Agent Network Platform (ANP), a strong web-based portal especially created to service all participants in the Agency Banking business and make their company operations more straightforward and simple.
In addition to prioritizing speed and security in the creation of goods and solutions, it went above and beyond to build RexRetail, a SME-tailored comprehensive solution for all retail business demands, as a solution that addresses the needs of retailers.
Small and medium-sized businesses can use the product to digitize their cashier, inventory, and payment acceptance processes while also having the ability to remotely supervise shop operations and track the effectiveness of each outlet. RexPay, its online payment gateway, aids businesses in swiftly and securely receiving payments.
Being client-centric in its approach, the business has a cutting-edge Contact Center that is staffed around-the-clock to ensure prompt response to inquiries, prompt resolution of complaints, and customer support.
Additionally, to offer its merchants immediate service, Accelerex has Field Response Representatives all around the nation. Accelerex has established regional offices across the country’s important geopolitical zones, including Lagos, the South West, South East, South-South, North Central, and Core North.
After getting a $20 million funding in 2020 to support growth and the development of new products throughout the group, Accelerex Holdings Group, the parent business of Accelerex, joined the league of Fintechs that attracted investment.
Accelerex has received several recognitions and awards, including the highly coveted Central Bank of Nigeria’s Cashless Driver Award. The fintech company has also been certified as one of the best places to work in Nigeria by Great Place to Work, the global authority on workplace culture, employee experience and leadership behaviours.
4. PiggyVest
One of the top platforms for saving is PiggyVest. You can save money with PiggyVest at an interest rate that is higher than what conventional banks provide. It ranks among Nigeria’s leading FinTech startups.
PiggyVest provides a variety of savings options. You can choose to use the platform’s PiggyBank feature, which lets you automatically choose the amount of money you want to save each day.
Every day, a small sum will be automatically taken out of your account and saved in PiggyVest until the designated period for withdrawal, at which point you can withdraw it with the specified interest (currently 8% p.a.).
With the Safelock feature, you can fix your money and lock it away for a set amount of time. Once the funds have reached maturity, you can withdraw them. It is comparable to the fixed deposit account offered by Nigeria’s established banks, with the exception that you can set the tenor yourself and earn up to 13% interest (upfront).
Additional features on PiggyVest include the Flex Dollar, which lets you save money in dollars, earn interest, and transfer dollars to anyone using the platform.
5. Paga
Another business making headlines in the FinTech sector is Paga. It is one of Nigeria’s top 10 FinTech businesses in 2022 and has made it simple for users to transfer and receive money in Nigeria.
It was established by Tayo Oviosu in 2009 and is among the top 10 FinTech firms in Nigeria. The ranking of the top 250 FinTech companies in the world includes it with Paystack.
Paga is a reputable, efficient, and tested mobile payment provider. Users can make payments even without an internet connection by simply dialing the code *242#.
Paga’s original objective was to make it possible for users to send money without being charged a fee, regardless of the amount. But over time, the business added other capabilities that permit bill payment, bank deposit, and payment at some establishments.
Visa declared that it had partnered with Paga on payments and technology in March 2020. Users of Paga can now conduct transactions on the Visa global network thanks to this partnership.
Since the year 2020, Paga has been attempting to spread outside of Nigeria. In January 2020, it bought the Ethiopian software development firm Apposit and established a presence in Mexico.
This leading FinTech company in Nigeria has over 12 million consumers and more than 20,000 agents spread across the nation.
6. Interswitch
One of the well-known brands in Nigeria’s FinTech sector is Interswitch. The proprietor of Quickteller offers solutions and online payment gateways. Their services have greatly benefited online shoppers.
In 2002, Mitchell Elegbe launched the business, which initially operated as a processing and switching firm for electronic payments.
The financial services provided by Interswitch include point-of-sale systems, Verve and its ATM card, as well as online consumer payment platforms.
It is a business that specializes in doing business in Africa and has integrated digital payments. It is among Nigeria’s oldest FinTech businesses.
Interswitch reported that as of May 2019, it was handling more than 500 million transactions per month. In the same year, the business bought a 60% share in the health technology firm eClat.
In addition, Retailpay, verve debit card, Smartgov, and a large number of ATMs are owned by Interswitch.
7. E-tranzact
E-tranzact is one of Nigeria’s first FinTech businesses. It ranks among the best FinTech firms in Nigeria. By enabling businesses to accept payments online, it also provides a solution to Nigeria’s payment-related problems.
Niyi Toluwalope is the company’s founder and CEO. Financial service providers such Mobile Topup, PocketMoni, CorporatePay, BankIT, and ATM CardlexCash are also owned by the firm.
Since its founding in 2003, E-Transact has handled payment requests from a variety of sources, including ATM, POS, Web, and mobile automated transactions. Networks like VISA, AMEX, and MasterCard are supported.
One of the company’s platforms was allegedly implicated in a N11 billion fraud in 2018. Due to this, CBN commanded the immediate removal of several important directors from the FinTech firm, including Valentin Obi, the CEO at the time.
The company suffered a loss of N3.1 billion after taxes in 2018 as a result of this scandal, which damaged its reputation. The business, however, came back to life the following year after reporting an after-tax profit of N96 million.
One of the top 10 FinTech businesses in Nigeria today is E-tranzact. The 2019 Business Day Top 25 CEOs and Next Bulls Awards presented it with the Best Corporate Turnaround and Transformation honor.
In addition to Nigeria, E-tranzact also conducts business in Kenya, Ghana, Zimbabwe, and Cote d’Ivoire. Additionally, it runs in the UK.
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8. Carbon Paylater
A lending app for Nigerians is called Carbon, replacing Paylater. Through its smartphone app, this business provides loans to Nigerians, removing the hurdles associated with obtaining loans from conventional banks.
One Finance Limited is the owner of this loan platform, which debuted in 2016. Users of the platform can quickly use their services and can obtain loans without having to provide any supporting documentation.
Another plus is how quickly, easily, beautifully, and effectively the Carbon app operates. Regardless of where you are in the nation, you can borrow money right away here.
On the app, you can also apply for a loan without providing collateral or a guarantee. Nigerian banks require these two (a guarantor and collateral) before giving a loan to a person.
Payvest, another function of Carbon, lets consumers save money. Lendable provided Carbon with a $5 million loan in 2019. After that, it bought Amplify Pay, which made it simpler for the Fintech business to launch cutting-edge banking capabilities.
This leading Nigerian Fintech startup had already made up to $10.4 million in income and disbursed at least $35 million in loans as of 2019.
At the AppsAfrica Awards, Carbon was recognized as the Best FinTech Solution in Africa and has since remained one of the leading Fintech firms in Nigeria.
9. Remita (SystemSpecs)
Remita has won the Nigerian Software of the Year award on a few occasions. It has in fact set the standard for numerous Nigerian FinTech businesses.
SystemSpecs, which John Obaro founded in 1991, created Remita. They assist businesses (including universities, NGOs, government departments, large corporations, SMEs, and individuals) in processing payments electronically.
The Federal Government of Nigeria has granted Remita a license, and it is the foundation of the Treasury Single Account (TSA) system. With time, this business has developed into one that offers software to businesses.
Remita concentrated on becoming an API service that offered various solutions, such as quick loan products for lenders. In 2017, it released a smartphone app.
Remita is used by more than 500 microfinance institutions and more than 1,000 businesses, SMEs, and organizations. Each year, it manages more than $30 billion in transactions.
In addition to Remita, SystemSpecs also recently unveiled Paylink as a significant initiative. In order to allow consumers to receive money instantly into their bank accounts without disclosing their bank information, Paylink was founded in 2020.
10. Kuda Bank
Another well-known name in FinTech is Kuda Bank. It is one of Nigeria’s top 10 FinTech firms for 2022. You won’t have to bother with the fees that regular banks impose when you use Kuda Bank.
The normal paper process is eliminated by Kuda Bank because everything is done online. Users can quickly open accounts online with this bank that only accepts digital transactions.
This leading FinTech firm in Nigeria additionally provides personalized Mastercard ATM cards without transfer or maintenance costs. Also cost-free are deposits.
Takeaway
Nigeria’s FinTech sector is vibrant and full of potential. Only a small portion of the FinTech startups and enterprises now active in the nation are included on this list of the top 10 FinTech companies.
Although these businesses have been able to take advantage of technological advancements in the financial services sector, there are still plenty of untapped potential markets and novel areas to explore.
Only 40% of adults in Nigeria have bank accounts, according to a World Bank research. What happened to the remaining 60% is the matter at hand. Why do they lack banking? Is it as a result of the inaccessibility of financial services? It’s possible that FinTech firms can fix the problem.
