Nigeria’s payment revolution

05 December 2017

Nigeria’s payment revolution

The aspiring Africa is one of inclusive growth and digital technology. Paga, one of Goodwell’s portfolio companies, is a Nigerian mobile money platform serving over 5 million users with services that include bill payments, airtime, money transfers as well as deposits and withdrawals. As a company that is disrupting traditional banking products, Paga advances access to affordable payments to financially excluded populations across Nigeria and provides new offerings for its customers through collaborations with banks, micro-finance institutions and the likes.[1] In the same country, exists PayU, a company that introduced a solution for recurring payments this past week. PayU is a leading online payment service provider dedicated to creating a fast, simple and efficient payment process for merchants and buyers.[2] PayU allows customers to make and receive payments and this new ability to perform recurring payments provides customers with a simple, safe and secure alternative to regular direct debit payments. Country Manager of PayU Nigeria, Ms Juliet Nwanguma said: “PayU Subscription allows merchants to improve customer satisfaction by offering a more convenient way for their customers to pay for their subscriptions and other recurring bills.”[3]

 

The existence of Paga and PayU in Nigeria demonstrates the great innovative and entrepreneurial spirit that lies on the African continent. Their reach into their respective markets is vital to inclusive growth as all sectors of the populations are being included and given access to goods and services they otherwise had no access to. It is clear from the creation of these two companies and their success that there is a great need for secure, safe, and easy ways to make and receive payments in Africa. These two companies also make it apparent that digital inclusion is closely connected to financial inclusion and that the African continent needs more services as these that include all parts of the population in order to advance and develop the region. The ability of both these somewhat similar platforms to coexist further showcases the amount of people that do need access to digital and financial services and the amount of brain power and skill that is available to provide said services. Nigeria and the rest of Africa are quickly moving towards a digital revolution that will change Africa’s future. In 2015, it was recorded that more than half a billion people across Africa subscribed to mobile services, with the number expected to grow to 725 million by 2020.[4]

 

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[1] PAGATECH. (n.d.). Retrieved August 17, 2017, from http://goodwell.nl/portfolio/pagatech-nigeria/

[2] PAYU – Nigeria. (n.d.). Retrieved August 15, 2017, from https://www.payu.com.ng/

[3] (n.d.). Retrieved August 15, 2017, from http://www.itnewsafrica.com/2017/08/payu-nigeria-introduces-new-payment-solution-for-recurring-bills/

[4] Dahir, A. L. (2016, August 02). Smartphones fuel the future of Africa’s mobile revolution. Retrieved September 12, 2017, from https://qz.com/748354/smartphone-use-has-more-than-doubled-in-africa-in-two-years/

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