In past years, entrepreneurs and individuals have struggled with accessible financial services because of challenges in the traditional banking sector. Remember the long wait you endured to open your first bank account? You had to queue for days!
Even after opening an account, you likely faced challenges over failure to make instant payments. You even had to spend time in line again to address failed transaction issues. Also, financial services remained limited since not everyone had easy access to an account.
Today, however, these challenges are becoming a thing of the past, thanks to the increase in fintech companies in Nigeria. With mobile banking, digital payments, and other innovations, Nigerian fintechs extend financial services to previously underserved communities, thus driving financial inclusion.
This article covers top Nigerian fintech companies, their unique contributions, and how they impact the economy.
Key takeaways
- Before the rise of fintech companies in Nigeria, entrepreneurs and individuals struggled to access reliable financial services easily.
- Nigeria’s increased mobile and Internet usage and rising demand for accessible financial services have contributed to the fintech sector’s growth.
- Beyond financial inclusion, the sector has significantly impacted employment, investment, and the country’s economic development.
- Nigeria’s top fintech companies are continually improving their services to further meet the needs of the people.
Overview of Nigeria’s fintech landscape
With 172 million mobile subscribers, Nigeria has 87% mobile penetration and by 2025, the number of smartphone users is projected to exceed 140 million. Also, the country’s Internet user penetration slightly increased from 26% in 2018 to 38% in 2022.
Also, the demand for accessible financial services and a youthful and tech-savvy population contributed to the growth of the list of fintech companies in Nigeria.
Furthermore, the sector has significantly impacted employment, investment, and the country’s economic growth. For instance, Akeem Lawal, the Managing Director of Interswitch Purepay, said in 2022 that the fintech industry has created over 20,000 jobs and supported over 530,000 businesses in Nigeria over the past years.
Top fintech companies in Nigeria
1. Moniepoint
Founded in 2015 as TeamApt to provide infrastructure payment solutions to financial institutions, Moniepoint is among the top fintech companies in Nigeria. In 2019, it expanded to offer financial services directly to Nigerian businesses, and by 2023, announced a complete rebrand to Moniepoint.
Here is a comprehensive overview of Moniepoint Inc., including its company profile and funding history:
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| Attribute | Details |
| Company Name | Moniepoint Inc. |
| Founded | 2015 |
| Founders | Tosin Eniolorunda, Felix Ike |
| Headquarters | Lagos, Nigeria |
| Industry | Financial Technology (Fintech) |
| Services Offered | Digital banking, payment processing, credit facilities, business management tools |
| Target Market | Small and medium-sized enterprises (SMEs), individual consumers |
| Regulatory Status | Licensed by the Central Bank of Nigeria (CBN) as a Microfinance Bank |
| Key Milestones | – Became Nigeria’s largest merchant acquirer, processing over $17 billion monthly – Raised $110 million in Series C funding in October 2024, achieving unicorn status |
| Recent Developments | – Appointed Bayo Olujobi as Chief Financial Officer in November 2024 – Launched personal banking services in July 2023 |
| Website | www.moniepoint.com |
Funding History:
| Funding Round | Date | Amount Raised | Lead Investors |
| Seed | May 2015 | $1.8 million | Seedcamp, Shakil Khan, and other angel investors |
| Series A | March 2019 | $5.5 million | Quantum Capital Partners |
| Series B | August 2021 | Undisclosed | Novastar Ventures |
| Pre-Series C | August 2022 | $50 million | QED Investors |
| Series C | October 2024 | $110 million | Development Partners International, Google’s Africa Investment Fund, Verod Capital, Lightrock |
The CBN-licensed fintech provides services like POS systems, digital banking, loans, bill payments, business management tools, payroll, and insurance, supporting small to medium-sized businesses.
Moniepoint processed over five billion transactions worth $150 billion in 2023. It processes $17 billion monthly in 800 million transactions, has ten million business and individual bank accounts, and has 72 million monthly card uses on its terminals.
Ranked among the 2023 Financial Times’ list of Africa’s fastest-growing companies, Moniepoint achieved unicorn status after raising $110 million to fund its expansion across Africa. It also appointed an ex-Stanbic IBTC CFO, Bayo Olujobi, as CFO of its microfinance bank, indicating a potential move into commercial banking.
In the same year, it reported reaching over 640,000 mobile money agents. Moniepoint leverages online and offline strategies to enhance financial inclusion and increase competition.
Beyond the above, reviews on Trustpilot, a platform for customer reviews and ratings, highlight security concerns with Moniepoint. Customers allege exploitation by scammers and limited support from customer service. In line with this, the company always cautions customers to avoid interacting with unverified social media handles.
2. OPay
OPay is another CBN-licensed fintech company in Nigeria. The financial service platform, owned by Chinese billionaire, Yahui Zhou, offers services such as mobile wallet, payment solutions, POS, savings and investments, loans, bill payments, and utility services.
Here is a comprehensive overview of OPay, including its company profile and funding history:
Company Profile:
| Attribute | Details |
| Company Name | OPay Digital Services Limited |
| Founded | 2018 |
| Founder | Yahui Zhou |
| Headquarters | Lagos, Nigeria |
| Industry | Financial Technology (Fintech) |
| Services Offered | Mobile payments, money transfers, savings, loans, and other financial services |
| Target Market | Individuals and businesses in Nigeria and other African countries |
| Regulatory Status | Licensed by the Central Bank of Nigeria (CBN) as a Mobile Money Operator |
| Key Milestones | – Achieved over 10 million users and 300,000 agents in Nigeria- Expanded services to Egypt and Pakistan |
| Recent Developments | – Raised $400 million in Series C funding in August 2021, valuing the company at $2 billion- Appointed Olu Akanmu as President and co-CEO in November 2021 |
| Website | www.opayweb.com |
Funding History:
| Funding Round | Date | Amount Raised | Lead Investors |
| Series A | July 2019 | $50 million | Sequoia China, IDG Capital, Source Code Capital |
| Series B | November 2019 | $120 million | Meituan-Dianping, DragonBall Capital, GaoRong Capital |
| Series C | August 2021 | $400 million | SoftBank Vision Fund 2, Sequoia Capital China, Redpoint China, Source Code Capital |
The fintech is intentional about related services such as OWealth, SafeBox, Spend & Save, and Fixed, all designed to help customers deposit money and earn returns.
Recognised as one of the top 10 fintech companies in Nigeria, OPay also offers virtual cards, which it claims are accepted by over 40,000 online merchants, including Jumia, Konga, and even streaming platforms like Netflix. Customers can obtain a virtual card through its app for ₦800. It also offers physical ATM cards.
OPay has made headlines for reportedly setting up bank accounts without users’ consent, though it has refuted these claims. Techpoint Africa also reported last year on how fraudsters exploit the fintech’s loopholes to hijack identities — you can open OPay or PalmPay accounts with anybody’s name.
Subsequently, OPay disabled the “verify with bank account” feature which allowed for the loophole. It has also introduced a new security feature, “Large Transaction Shield,” to protect against financial fraud.
As one of the fintech companies in Lagos and some other parts of the country, OPay says It aims to serve one billion users and ten million merchants and create one million jobs by 2031.
3. PalmPay
Launched in Nigeria in 2019 under a Mobile Money Operator licence, PalmPay is similar to OPay. Its app offers instant money transfers, bill payments, credit services, and savings. Unlike OPay’s multiple deposit and earn options, PalmPay provides target savings with 12% annual interest and fixed savings with 20% yearly interest.
PalmPay is one of the top ten fintech companies in Nigeria. Its distinctive “Recharge2Cash” feature allows MTN subscribers to sell airtime for cash. The company also offers a gift card feature for buying gift cards.
Over the years, the Chinese-owned fintech has grown to 25 million users and over 300,000 merchants. It boasts a 99.5% ten-second transaction success rate. PalmPay has also had issues with fraudsters exploiting security gaps to steal user identities.
4. Momo PSB
In April 2022, the Central Bank of Nigeria (CBN) granted a PSB licence to Mo Payment Service Bank (PSB), a subsidiary of MTN Nigeria. Since then, it has become one of the Nigerian fintech companies offering various services, including savings, insurance, remittances, and payment options.
Here is a comprehensive overview of MoMo Payment Service Bank (PSB):
Company Profile:
| Attribute | Details |
| Company Name | MoMo Payment Service Bank Limited |
| Founded | 2022 |
| Parent Company | MTN Nigeria Communications Plc |
| Headquarters | Lagos, Nigeria |
| Industry | Financial Technology (Fintech) |
| Services Offered | Mobile money transfers, deposits, withdrawals, bill payments, and other financial services |
| Target Market | Individuals and businesses across Nigeria, focusing on the unbanked and underbanked populations |
| Regulatory Status | Licensed by the Central Bank of Nigeria (CBN) as a Payment Service Bank |
| Key Milestones | – Granted final approval by the CBN in April 2022
– Launched operations in May 2022 – Acquired remaining 7.17% stake from Acxani Capital in August 2024, becoming a wholly-owned subsidiary of MTN NigeriaTechPoint Africa |
| Recent Developments | – Reported revenue of ₦48.6 billion for H1 2024, an 11% increase from H1 2023
– Active MoMo PSB wallets reached 5.5 million by Q2 2024 |
| Website | www.momo.ng |
Funding History:
| Funding Round | Date | Amount Raised | Lead Investors |
| Initial Investment | April 2022 | $35 million | MTN Nigeria Communications Plc |
| Acquisition | August 2024 | ₦6.95 billion | MTN Nigeria Communications Plc (acquired remaining 7.17% stake from Acxani Capital) |
With an active wallet growth from 701,000 in Q1, 2024 to 5.5 million in Q2, 2024, MoMo PSB allows users to operate offline by dialling *671# to open personal accounts with their phone numbers, fund the accounts, and start transacting.
MoMo PSB has applied for two new licences: Payment Service Solutions Provider (PSSP) and Payment Terminal Service Provider (PTSP). These licences enable MoMo PSB to manage payment terminals, provide backend processing for digital transactions, and compete with other Nigerian fintechs like OPay and Paystack.
Momo PSB recently launched outbound and inbound remittance services, enabling Nigerian customers to send money to 13 African countries, including Benin, Cameroon, Côte d’Ivoire, and Uganda through its app and USSD channels.
It also introduced a gift card service, enabling users to buy e-vouchers from their MoMo accounts for international online shopping and service payments.
Google Play Store reviews indicate areas for improvement in the fintech app. Users report issues with app lag, frequent password entry, a non-functioning fingerprint login, and the consistent need for an OTP on every login.
5. Kuda
Often referred to as “The Bank of the Free,” Kuda is another Nigerian fintech company aiming to make financial services more accessible. The fintech offers various services, including instant transfers, savings and investments, and loans. Its investment option, powered by Bamboo, an investment platform, allows users to buy and sell stocks.
Here is a comprehensive overview of Kuda Bank:
Company Profile:
| Attribute | Details |
| Company Name | Kuda Technologies Limited |
| Founded | 2019 |
| Founders | Babs Ogundeyi, Musty Mustapha |
| Headquarters | London, United Kingdom |
| Industry | Financial Technology (Fintech) |
| Services Offered | Digital banking, savings accounts, personal and business loans, payment services |
| Target Market | Individuals and businesses in Nigeria and the United Kingdom |
| Regulatory Status | Licensed by the Central Bank of Nigeria (CBN) as a Microfinance Bank; operates in the UK under Kuda EMI Ltd |
| Key Milestones | – Achieved over 6 million customers in Nigeria by July 2023 – Processed ₦55.8 trillion (~$61.4 billion) in transactions since launch |
| Recent Developments | – Raised $55 million in Series B funding in August 2021, valuing the company at $500 million – Expanded services to the UK market in 2022 |
| Website | www.kuda.com |
Funding History:
| Funding Round | Date | Amount Raised | Lead Investors |
| Seed | September 2019 | $1.6 million | Target Global, Entrée Capital, SBI Investment |
| Series A | March 2021 | $25 million | Valar Ventures, Target Global |
| Series B | August 2021 | $55 million | Valar Ventures, Target Global |
CBN licensed Kuda in 2019 and has over 7.5 million users. It ranks among the top 50 fintech companies in Nigeria.
Kuda recently made headlines for fraudulent activities on its app, indicating the need for better security measures. Customer reviews have also reported that the app requires frequent updates, making it difficult to use.
6. Paystack
Founded in Lagos in 2015, Paystack provides payment processing services, including Virtual Accounts for bank transfers. It has processed over 170 million transactions for 60,000+ businesses, partnering with Wema, Access, and Zenith Banks.
Here is a comprehensive overview of Paystack:
Company Profile:
| Attribute | Details |
| Company Name | Paystack Payments Limited |
| Founded | 2015 |
| Founders | Shola Akinlade, Ezra Olubi |
| Headquarters | Lagos, Nigeria |
| Industry | Financial Technology (Fintech) |
| Services Offered | Payment processing, online and offline payment solutions, business financial services |
| Target Market | Businesses and merchants across Africa |
| Regulatory Status | Licensed by the Central Bank of Nigeria (CBN) as a Payment Service Provider |
| Key Milestones | – First Nigerian company accepted into Y Combinator in 2016- Acquired by Stripe in October 2020 for over $200 million- Expanded operations to Ghana, South Africa, and Kenya |
| Recent Developments | – Launched Paystack Commerce to support online sales for African businesses- Introduced Apple Pay integration for Nigerian merchants |
| Website | www.paystack.com |
Funding History:
| Funding Round | Date | Amount Raised | Lead Investors |
| Seed | December 2016 | $1.3 million | Tencent, Comcast Ventures, Ventures Platform |
| Series A | August 2018 | $8 million | Stripe, Visa, Tencent, Y Combinator |
| Acquisition | October 2020 | $200 million+ | Stripe |
Paystack allows businesses to receive payments from customers anywhere in the world using a Mastercard, Visa, or Verve card. In July 2024, it processed ₦1 trillion worth of transactions. In 2020, Stripe, a US payments company, acquired Paystack for $200 million to expand into Africa.
The fintech streamlines transactions for millions of Nigerian consumers who lack access to traditional banking services, enhancing financial inclusion through easy integration of payment systems on its platform.
6. Flutterwave
Flutterwave also provides payment processing services that enable businesses and individuals to send and receive money across borders. It offers online checkout, allows users to create free eCommerce websites to sell globally, and generates professional invoices.
It supports over 30 currencies and processes an average of 500,000 payments daily. In August 2024, it announced that Nigerian online merchants can now accept American Express payments, enhancing cross-border trading.
Here is a comprehensive overview of Flutterwave:
Company Profile:
| Attribute | Details |
| Company Name | Flutterwave Inc. |
| Founded | 2016 |
| Founders | Olugbenga Agboola, Iyinoluwa Aboyeji |
| Headquarters | San Francisco, California, USA |
| Industry | Financial Technology (Fintech) |
| Services Offered | Payment processing, payment gateway solutions, financial services for businesses and individuals |
| Target Market | Businesses and consumers across Africa and globally |
| Regulatory Status | Licensed by the Central Bank of Nigeria (CBN) and other regulatory bodies in operating countries |
| Key Milestones | – Raised $250 million in Series D funding in February 2022, valuing the company at over $3 billion- Expanded operations to over 33 African countries- Processed over 140 million transactions worth more than $9 billion as of March 2021 |
| Recent Developments | – Obtained a switching and processing license from the CBN in September 2022- Named ‘Fintech of the Year’ at the African Banker Awards in 2024 |
| Website | www.flutterwave.com |
Funding History:
| Funding Round | Date | Amount Raised | Lead Investors |
| Seed | May 2016 | $1.2 million | Y Combinator, Ventures Platform, HOF Capital |
| Series A | October 2017 | $10 million | Greycroft Partners, Green Visor Capital |
| Series B | January 2020 | $35 million | Greycroft Partners, eVentures, Visa |
| Series C | March 2021 | $170 million | Avenir Growth Capital, Tiger Global Management |
| Series D | February 2022 | $250 million | B Capital Group, Fidelity Management & Research Company, Tiger Global Management |
Impact of fintech on Nigeria’s economy
The fintech sector has significantly contributed to Nigeria’s economy by enhancing financial inclusion, creating jobs, and attracting foreign investment. This section examines the broader economic impact of fintech companies in Nigeria.
- Financial inclusion: The growth of fintech in Nigeria has improved financial inclusion, making financial services more accessible to more people and reducing the gap between those with and without access to banking.
- Job creation: The growth has further motivated interests in data analysis, customer service, and digital marketing, creating over 20,000 jobs and supporting over 530,000 businesses in Nigeria over the past years.
- Foreign investment: The sector’s growth has also attracted foreign investment, enhancing the country’s digital infrastructure. For instance, Nigeria recently got a ₦2.8 billion Google grant to advance AI talent development.
Challenges and opportunities in Nigeria’s fintech sector
While the fintech industry in Nigeria is booming, it faces challenges such as regulatory hurdles, cybersecurity threats, and infrastructure limitations. This section explores these challenges and the opportunities for growth and innovation.
- Regulatory challenges: The lack of unified policies is a major challenge for the sector, especially for aspects like cryptocurrency. With multiple agencies involved, there’s been a lot of inconsistency in policymaking.
- Infrastructure limitations: Poor Internet penetration in some areas with poor power supply affects financial services. Because of the poor power supply, telcos, which facilitate easy activities in the sector, have even considered load shedding recently.
- Cybersecurity threats: There has been a surge in cyber threats due to inadequate cybersecurity measures in the fintech sector. The Economic and Financial Crimes Commission Chairman, Ola Olukoyede, recently revealed that Nigeria loses over $500m to cybercrime annually.
Despite challenges, fintech companies in Nigeria are improving financial inclusion, especially in rural areas. Companies like MoMo PSB offer instant online and offline transfers, enabling users in areas without stable Internet connections to use shortcodes for transactions.
FAQs about fintech companies in Nigeria
What is a fintech company?
A fintech company is any company that uses technology to provide financial services. It integrates technology with financial services to enhance or automate banking and financial processes for businesses or consumers.
How many fintech companies are there in Nigeria?
Nigeria hosts a vibrant fintech ecosystem with numerous companies; estimates suggest that over 200 fintech firms are operating there.
What are the benefits of fintech in Nigeria?
Fintech companies in Nigeria have improved financial inclusion, provided easier access to financial services, and fostered economic growth through innovation.
How do fintech companies make money?
Fintech companies generate revenue through various models, including transaction fees, subscription services, lending interest, and partnerships with traditional financial institutions.
Conclusion
Nigeria’s fintech sector continues to thrive, driven by innovation and a commitment to addressing the financial needs of its population. The companies highlighted in this article exemplify the dynamic and transformative nature of fintech in Nigeria.
