Elizabeth Antidius Shumbusho | Africa Guardian
Global payments leader Visa has made a strategic investment in African fintech Moniepoint, signaling a shared commitment to financial inclusion and the growth of small and medium-sized enterprises (SMEs) across the continent. While Moniepoint did not disclose the exact investment amount, sources suggest Visa contributed over $10 million, pushing the fintech’s Series C funding to more than $120 million. Moniepoint, which secured $110 million in October, is reportedly in discussions with additional investors and could attract more funding soon, maintaining its billion-dollar valuation.
Moniepoint, a business banking and payments platform, offers banking accounts, credit services, and payment solutions through a mobile app and a network of agents. The fintech processes over 1 billion transactions monthly, with total payment volumes exceeding $22 billion—a 25% growth in under three months. Its prominence surged during Nigeria’s Central Bank cashless initiative in early 2023, solidifying its role in shaping the nation’s digital payment landscape.
Despite its success, Moniepoint operates within a massive market. Nigeria’s digital payment industry saw transactions worth $400 billion in 2023, with electronic transfers—powered by the instant payment network NIP—dominating nearly 90% of the market. Other channels, including point-of-sale systems, mobile agents, and ATMs, remain less utilized.
Visa Partnership: Expanding Reach and Introducing Contactless Payments
Visa’s backing underscores Moniepoint’s potential as a key player in Nigeria’s card payment ecosystem. According to Moniepoint CEO Tosin Eniolorunda, the collaboration will enable the fintech to expand its services and geographic footprint. “With Visa as our investor, we can strategically collaborate to grow the payment ecosystem and expand to more countries, which is a key goal for us,” he said.
One focus of this partnership is driving the adoption of contactless payments. Nigeria’s Central Bank has been pushing for contactless services to facilitate micro-transactions and improve payment accessibility. Eniolorunda highlighted that the partnership would support this transition, providing contactless-enabled terminals for businesses and chip cards for individuals.
Globally, contactless card payments already outpace mobile wallets in many markets, and Nigeria has the potential to follow suit once regulatory clarity and trust issues are addressed.
Leveraging Visa’s Technology for Growth
Beyond contactless payments, Moniepoint plans to use Visa’s Cybersource platform for enhanced transaction visibility and will integrate Visa Direct for remittances and money transfers. These efforts align with Moniepoint’s broader goal of expanding its presence within Africa and beyond.
Visa’s investment also aligns with its history of supporting Africa’s payment infrastructure, having previously backed firms like Flutterwave, Paystack, and Interswitch. With Moniepoint, Visa aims to digitize payments for SMEs while increasing its share of Nigeria’s card market, where it currently trails Interswitch’s Verve and Mastercard.
Supporting SMEs and Driving Financial Inclusion
Visa’s Regional President for Central and Eastern Europe, the Middle East, and Africa, Andrew Torre, emphasized the importance of empowering SMEs through innovative payment solutions. “We will enable even the smallest businesses to thrive by providing software solutions that allow SMEs to scale, streamline operations, and unlock new revenue opportunities,” Torre said.
Moniepoint’s other investors include Development Partners International, Google’s Africa Investment Fund, QED Investors, and British International Investment (BII). With Visa joining its board, the fintech is poised to drive Africa’s digital payment revolution and further support its SME ecosystem.
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