Moniepoint Secures Visa Backing for Contactless Payments Expansion

Visa Invests in African Fintech Moniepoint

Visa has become a new investor in Moniepoint, a leading African fintech company. This strategic investment aims to bolster financial inclusion and facilitate the expansion of small and medium-sized enterprises (SMEs) throughout Africa.

Investment Details and Valuation

Sources indicate that Visa contributed over $10 million to Moniepoint’s Series C funding round, bringing the total raised in this round to over $120 million.

The fintech is currently engaged in discussions with additional investors and is projected to maintain its billion-dollar valuation. Moniepoint has not disclosed the precise amount of Visa’s investment or details regarding other potential investors.

Moniepoint’s Growth and Services

Moniepoint delivers a comprehensive suite of financial services to both businesses and individuals. These services, accessible through a mobile application and an extensive agent network, include banking accounts, credit facilities, and payment processing tools.

The platform currently processes over 1 billion transactions each month, with total payment volumes reaching $22 billion. This represents a growth rate exceeding 25% in just under three months.

Nigeria’s Digital Payment Landscape

Moniepoint’s rise coincides with Nigeria’s push towards a cashless economy, initiated by the Central Bank in early 2023. The company is now a key player in shaping the future of digital payments within the nation.

Nigeria’s digital payment market is diverse, encompassing electronic transfers, ATMs, POS devices, mobile agents, and web payments. In 2023, the total transaction value reached approximately $400 billion.

• Electronic transfers, facilitated by the NIP network, account for nearly 90% of all transactions.
• Other channels, like mobile agents and POS systems, represent a smaller portion of the market.

Visa’s Strategic Alignment

Visa’s investment underscores Moniepoint’s position within Nigeria’s card payment ecosystem, both as a significant issuer and acquirer.

Tosin Eniolorunda, CEO of Moniepoint, stated that the partnership with Visa will enable the expansion of the payment ecosystem and facilitate entry into new markets.

Focus on Contactless Payments

Both companies intend to prioritize the introduction of contactless payment solutions. The Central Bank of Nigeria has signaled its support for contactless services to enhance accessibility and facilitate micro-transactions.

Implementation of contactless payments will depend on the establishment of clear regulations and the resolution of concerns related to privacy, security, and consumer trust.

Leveraging Visa’s Infrastructure

Moniepoint will integrate Visa’s Cybersource system to improve transaction visibility. Furthermore, the company plans to utilize Visa Direct for remittances and money transfers, expanding its reach within and beyond Africa.

Visa has a proven track record of investing in African payment infrastructure, with prior investments in companies like Interswitch, Flutterwave, Paystack, and JUMO.

Expanding into the SME Market

With this investment in Moniepoint, Visa aims to penetrate Nigeria’s SME market, digitizing payments for these businesses and increasing its market share in the country’s card scheme sector.

Currently, Visa trails Interswitch’s Verve and Mastercard in card usage, but both competitors are also actively pursuing tap-to-pay opportunities.

Visa’s Commitment to Africa

Andrew Torre, Visa’s regional president for Central and Eastern Europe, Middle East and Africa, emphasized the company’s ongoing commitment to advancing digital economies in Africa.

Innovative payment solutions will empower SMEs to scale their operations and unlock new revenue streams.

Board Representation and Existing Investors

Visa will secure a seat on Moniepoint’s board following this investment. The fintech’s existing investors include Development Partners International, Google’s Africa Investment Fund, QED Investors, Lightrock, and British International Investment (BII).

Oui Capital, an early investor, recently achieved a successful exit with its first fund after backing the African unicorn six years ago.