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TeamApt and Opay are expanding their businesses to West and North Africa

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TeamApt, a Nigerian Fintech that provides digital financial service solutions and payment infrastructure, recorded over 150% overall QoQ growth in 2020, despite the global Covid-19 pandemic.

The company, founded in 2015, which has worked with a wide range of African banks and 100% of commercial banks in Nigeria, also recorded $3.9billion in transaction value across its products, more than 90 million transactions processed and 500% merchant growth

TeamApt’s Moniepoint and Opay’s mobile money option were some of the most used alternative payments services during the lockdown, as their services were readily available to underserved businesses and customers.

TeamApt Business-to-Consumer products

  • TeamApt’s mobile money platform, Moniepoint, launched in 2019, became the largest non-bank mobile money operator in Nigeria (by value processed), despite being the latest entrant.
  • TeamApt grew its agent network to 50,000 (900% growth), with agents in each of Nigeria’s 36 states, thereby drastically improving the ratio of financial access points in the country.
  • TeamApt’s payment gateway for businesses to accept payments from customers, Monnify, also saw massive growth with over 1,600 businesses on the Monnify platform that transacts more than N50 billion monthly.

New focus

  • TeamApt announced yesterday that it will shift its focus from delivering financial services products to banks to deliver products for consumers and businesses, as it aims to build on a strong performance in 2020.
  • It will now focus on building products that make it easier for individuals and businesses to access financial services, as well as growing its agent network and other touchpoints for its existing products – Moniepoint and Monnify.
  • The company is also exploring opportunities to deliver financial services for underserved individuals and businesses in other countries in West and North Africa.

Commenting on the plans and the new focus, Tosin Eniolorunda, CEO and Co-Founder of TeamApt, said:

  • “We had a lot of success working with banks but we have identified some unique opportunities to empower underserved individuals and business with products designed to make it easier to access and manage their money more efficiently.
  • “Many synergies and opportunities have been underexplored in the journey of improving financial inclusion in Africa and other emerging markets, and we are excited by the prospects of what we can achieve. We are confident in our competence and the technical expertise to deliver products and services that will transform access to financial services across Africa.”

Opay

  • Opay, a seamless mobile money service, saw great spikes in transactions on its platform, after changing its business model in February 2020 to focus on payment.
  • According to Bloomberg, the volume of monthly settlements on the OPay platform grew almost fourfold from $363 million in January to $1.4 billion in November 2020.
  • The company has over 300,000 offline agents in it’s network and currently processes about 80% of bank transfers amongst mobile money operators in Nigeria and 20% of non-merchant point of sales transactions.
  • The company has begun it’s plan to break into the north African market after its success in Nigeria.

Opay CreditMe

  • The company is currently piloting a digital overdraft product for its mobile wallet customers who have short-term funding needs.
  • This digital overdraft is called “CreditMe” and users will be able to borrow from 5,000 to 100,000 naira and have a window of 30 days to repay.
  • The overdraft attracts 3% interest for the first seven days and 1% every day after that.
  • The mobile-payments company also acquired an international money transfer license last year and plans to partner with WorldRemit to process remittances into Nigeria.

Why it matters

According to the World Bank, around 1.7 billion adults in the world remain unbanked while the bank to population ratio in Nigeria, Africa’s largest economy, remains low – 4.3 branches per 100,000 compared to the global average of 11.7 branches per 100,000 people.

For many people, agency banking (POS Shops) represents a financial access lifeline and one of the most viable options for accessing financial services.

Shared Agent Network Expansion Facilities (SANEF), reported that agent transactions surged by 859 percent during the first lockdown in March/April 2020 and despite restrictions being relaxed, the volume and value of transactions have continued to rise.

These statistics are more than enough reason for this fintech to thrive. The expectations are high to find out if the model that was implemented in the Nigerian market by these companies will also work in other African countries.

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