When the Financial Times announced Moniepoint as the fastest growing Fintech Company in Nigeria for the second consecutive year, I totally agreed with the decision.
In the last 2 years, I have noticed the increasing number of SMEs that have switched to using Moniepoint as their account for business transactions.
This year alone, I have traveled to 3 states outside Lagos and for most of the time I had to pay for what I purchased via a POS machine, it has mostly been Moniepoint.
One of my most memorable moments was when the StartupsVibes team went out for a shoot of one of our docu-series on the state of the Nigerian economy at the Corner Market in Ajah. As we arrived, the vibrant energy of the market was palpable. Stalls lined the paths, displaying everything from fresh produce to finished products, and the air was filled with the sounds of lively bargaining and friendly chatter.
To my utmost surprise, I noticed that most of the POS attendants and market sellers were using the Moniepoint POS machine as a means of receiving payment. The sleek, blue devices seemed to be everywhere I looked. It was remarkable to see how deeply Moniepoint had penetrated the market landscape, becoming a trusted tool for both small and larger vendors.
The Market Experience
After the shoot, we decided to make a few purchases. The team spread out, each person exploring different stalls. I bought 3 different sized notepads and a selection of pens (I love taking notes). When it came time to pay, the process was seamless. I simply slotted in my card on the Moniepoint machine, and within seconds, the transaction was complete. The ease and efficiency were impressive.
As I wandered through the market, I came across an elderly woman selling an array of fresh fruits. Her stall was a burst of color with piles of mangoes, pineapples, cucumber, apples and bananas neatly arranged. I selected a few ripe fruits and asked, “Do you accept card payments?“
“Yes, we use Moniepoint here,” she replied with a toothy smile, holding up the POS machine.
Curious, I asked her how Moniepoint had changed her business. She explained, “Before Moniepoint, I often lost sales because I didn’t have enough change or customers didn’t carry cash. Sometimes, customers money would hang and transactions would be incomplete on my previous POS. Now, it’s much easier with Moniepoint. I can accept card payments without worrying about cards been declined or network issues, and I don’t have to worry about losing customers.“
Her story was a testament to how Moniepoint has simplified life for small business owners, making transactions more convenient and secure.
Now let’s talk about some of the factors that have aided the steady growth of moniepoint over the years.
For the second year in a row, Moniepoint has earned the prestigious title of Africa’s fastest-growing fintech, as recognized by the Financial Times. The survey ranked companies based on their absolute revenue growth rate and compound annual growth rate (CAGR) between 2019 and 2022. Moniepoint’s impressive growth rates of 7,979% (absolute) and 332% (CAGR) secured its top position.
But what does being the “fastest-growing fintech” mean for the millions of businesses and individuals across the continent?
Driving Access to Banking
Moniepoint has been on a mission to bring financial happiness to everyone, aiming to drive financial inclusion for the underserved. In 2018, before the review period by the FT, approximately 51% of Nigerians lacked access to formal banking services. By 2023, this figure had dropped to 36%, showcasing significant progress.
This growth has notably benefited millions of businesses in the informal sector that previously lacked access to regular formal banking services. Thanks to Moniepoint’s extensive distribution network, more people now have bank accounts, bringing banking services directly to them, eliminating the need to visit traditional banking halls.
Expanding Access to Payment Services
According to EFInA’s report, access to payment services increased by 12% during the same period. This growth means more people can now easily make digital payments, and more businesses can accept them. Moniepoint has been a key driver of this expansion. As of February 22, 2023, the company was activating a new payment terminal every 30 seconds in Nigeria. Moniepoint has effectively tackled issues related to reliability, access, and fraud, earning the trust of millions of businesses.
Additionally, Moniepoint is making significant strides in web payments with the introduction of virtual accounts, revolutionizing Nigeria’s eCommerce market.
Enhancing Access to Credit
Credit access is crucial for financial inclusion, especially for small and medium enterprises (SMEs) that form the backbone of many African economies. However, only 15% of SMEs currently have access to necessary financing. Moniepoint is addressing this gap by offering working capital loans that significantly impact business sustainability and growth. By 2023, Moniepoint had disbursed over $70 million in loans to thousands of small businesses, providing vital capital to help these businesses thrive.
Digitizing Informal Businesses
The informal sector, which employs the majority of Africa’s workforce, has historically been underserved by traditional financial institutions. Moniepoint is changing this narrative through strategic initiatives. A recent partnership with the Corporate Affairs Commission (CAC) aims to formalize 30 million businesses over the next five years, granting them access to comprehensive financial services and government support.
Final Thoughts
Across Nigeria, the distinct ping of Moniepoint terminals signifies expanding businesses and thriving partnerships. Moniepoint’s innovative tools are empowering individuals and businesses, bringing them closer to financial empowerment. This recognition by the Financial Times underscores Moniepoint’s unwavering commitment to making financial services accessible to all.