Moniepoint Inc., a leading African financial services platform, has secured a $10 million investment from Visa, bringing its Series C funding to over $120 million. This latest funding round cements Moniepoint’s unicorn status, with the company now valued at more than $1 billion.
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Visa joins a distinguished group of investors, including Development Partners International, Google’s Africa Investment Fund, QED Investors, and British International Investment, further solidifying Moniepoint’s position as a dominant force in the African fintech space.
Moniepoint’s Growth Milestones
Moniepoint has witnessed remarkable growth, processing over 1 billion monthly transactions and achieving a total payment value (TPV) of $22 billion. This represents a 25% growth in less than three months. Growth highlights its role as a critical driver of financial inclusion and digital payments across the continent.
Partnership with Visa: A Strategic Leap Forward
The collaboration with Visa is a strategic move aimed at expanding Moniepoint’s digital payment ecosystem across Africa, with a focus on:
- Contactless Payment Solutions:
- Introducing touchless technologies to enhance the convenience and efficiency of transactions, aligning with the Central Bank of Nigeria’s (CBN) push toward cashless economies.
- Leveraging Visa’s Global Network:
- Utilizing Visa’s Cybersource platform for improved transaction visibility and Visa Direct for seamless cross-border remittances.It will particularly benefit SMEs and underserved businesses.
- Expanding Financial Access for SMEs:
- Addressing challenges faced by African small and medium-sized enterprises (SMEs), including credit constraints and inefficient payment systems.
Tosin Eniolorunda, CEO of Moniepoint, emphasized the importance of the partnership:
“This collaboration with Visa is not just about expanding our footprint but about reshaping the payment ecosystem across Africa. By empowering SMEs and introducing advanced payment solutions, we are laying the foundation for a truly cashless and inclusive economy.”
Africa’s Digital Payment Potential
Africa’s fintech sector has emerged as a hotbed of innovation, driven by a young, tech-savvy population and rising smartphone penetration. The continent’s digital payment market is projected to grow to $40 billion by 2025, making it an attractive frontier for global payment giants like Visa.
Moniepoint’s local expertise combined with Visa’s global infrastructure positions the partnership to tap into this vast potential. By digitizing transactions for millions of underserved businesses, the collaboration aims to boost economic growth and foster financial inclusion.
Why Contactless Payments Are Key
The COVID-19 pandemic accelerated the adoption of touchless payment technologies worldwide, and Africa is no exception. Central banks across the continent are actively promoting cashless policies to enhance transparency, reduce transaction costs, and curb financial fraud.
Moniepoint’s introduction of contactless solutions is timely, offering businesses and consumers a safer, faster, and more convenient way to transact. This aligns with the CBN’s guidelines and broader efforts to digitize Africa’s economies.
Empowering SMEs and Driving Economic Growth
SMEs form the backbone of African economies, yet they often face significant barriers to accessing credit and efficient payment systems. Moniepoint and Visa’s partnership seeks to:
- Provide tailored digital solutions that address the unique challenges of African businesses.
- Reduce reliance on cash-based transactions, which are inefficient and prone to fraud.
- Unlock new opportunities for growth by integrating African SMEs into the global digital economy.
Global Players Betting Big on African Fintech
The Moniepoint-Visa partnership reflects a broader trend of global payment giants collaborating with African fintech innovators. Investors are drawn to the continent’s untapped potential and rapid technological adoption, with African fintech companies raising record amounts of funding in recent years.
Visa’s investment in Moniepoint is particularly significant, as it highlights the strategic importance of fostering local partnerships to penetrate the fragmented but high-growth African market.
Moniepoint reshaping Africa’s financial landscape
Moniepoint’s rise to unicorn status and its strategic partnership with Visa mark a turning point for Africa’s fintech ecosystem. By empowering SMEs, introducing advanced payment solutions, and fostering financial inclusion, the collaboration is set to reshape Africa’s financial landscape.
With digital payment adoption on the rise and a booming fintech sector, Moniepoint and Visa are poised to drive transformative change, unlocking immense economic opportunities for millions across the continent.