Fintech companies are becoming very common in Nigeria. There's no other reason than they have helped the country's economy. With COVID-19, many people lost their jobs, and businesses were affected. Since then, Fintech Companies have provided financial services for individuals and businesses needing it. Here are a few Fintech companies in Nigeria.
What is Fintech?
Fintech refers to financial technologies, such as mobile banking apps, peer-to-peer lending platforms, crowdfunding websites, and more. These new technologies are revolutionizing finance and changing the way we interact with our finances. They also provide opportunities for entrepreneurs who want to start businesses or create innovative solutions for existing industries.
Nigeria has become a global leader in fintech innovation and has the fastest-growing fintech startups in Africa. In addition, the Nigerian government recently announced plans to launch its national cryptocurrency, NairaPay. This will be the first of its kind in West Africa and among one of the most advanced nations in the world.
Why Do We Need Fintech Companies in Nigeria?
The current financial system in Nigeria is inefficient because it relies heavily on paper Money that can often take days to clear. It's not only slow but there's also a lack of transparency when dealing with traditional banks. The cost of sending remittances abroad is high while transferring funds within the country isn't always possible.
Innovative fintech companies allow Nigerians to send money abroad without paying expensive fees. They enable customers to transfer money internationally from over 200, and it's free to open an account.
Also, fintech companies help consumers save money by providing easy access to credit cards and loans. Peer-to-peer lenders connect borrowers and investors through online networks. So, borrowers get affordable loans at competitive rates, and investors make returns by sharing the risk.
Some fintech companies even offer digital payment systems. For example, Paystack allows users to pay bills, shop online, and withdraw cash quickly using just a phone number.
How Many Fintech Companies Are There in Nigeria?
There are currently over 50 fintech companies operating in Nigeria. However, this number is expected to grow significantly in the coming years.
Many fintech companies are based in Lagos, Abuja, and Kano. Others operate globally, including London, New York City, and Singapore.
List of Top Fintech Companies in Nigeria
Flutterwave
Flutterwave is one of the top fintech companies in Nigeria. Many people use Flutterwave to make online payments, including sending money to friends and family members. They are known for being fast, reliable, and secure.
This tech startup is rated one of Africa's top 10 FinTech companies. It helps customers send money to each other via mobile phones. Also, it offers free international remittance transfers up to $500 per person.
In 2018, Flutterwave partnered with over 40 banks in different parts of Africa. Their goal is to reach 200 countries within five years, and they are now expanding into the European market.
Kuda
Kuda Bank, a Nigerian fintech startup launched in September 2018, is a mobile-only banking app that allows customers to manage their finances without carrying multiple cards. This bank offers zero monthly card maintenance fees, free international money transfers, and automatic savings to Nigerian customers. Founded by a group of former executives and technologists, Kuda is designed to help people save money while managing their finances anywhere in the world.
In addition to providing financial solutions, Kuda is committed to supporting social causes such as education, healthcare, and women empowerment. The idea behind Kuda is simple: people are often forced to pay high monthly fees to keep their accounts active. So why not make it easy for everyone to avoid those fees altogether? And since most banks charge hefty annual fees for international wire transfers, why not offer something better?
The app works across iOS and Android phones and tablets. Users can set up their accounts within minutes and don't even need a credit card.
Interswitch
Interswitch is one of the leading payment companies in Africa. Founded in 2002 as a transaction switch and electronic payment processing company, it has since evolved into an integrated payment solutions provider. Its mission is to provide convenient, affordable, secure money transfer solutions across Africa. With over 10 years of experience in the market, Interswitch offers end-to-end payment solutions for businesses and consumers in Nigeria and beyond.
The company offers cross-border remittance, mobile money, merchant acquirers, prepaid cards, eCommerce, cashless ATM networks, and consumer banking products. Interswitch also operates a Money Transfer Business Licensee in Ghana, West Africa.
OPay
Opay is a Nigerian startup that offers a mobile payments service similar to PayPal. Founded in 2018, the company claims it processes over 50 million monthly transactions across Africa. Its primary focus lies in providing financial services to unbanked consumers in the African market.
In addition to sending and receiving money, making bill payments, using credit cards, and even applying for online loans, the app allows users to save money quickly on purchases. Users can choose how much money to deposit into their account and how much they want to spend daily. For example, you can set up a budget for yourself and your partner, allowing you to monitor spending and avoid unnecessary expenses.
Paystack
PayStack is one of the fastest-growing fintech companies in Africa. The startup is headquartered in Lagos, Nigeria, with offices in London and New York City. It provides innovative solutions to make online payments easy and convenient for businesses and consumers.
The company offers free e-commerce solutions for small businesses and startups across Africa. Its mission is to provide a reliable gateway for local entrepreneurs and creatives to grow their businesses. By providing a simple and secure way to accept payments, it aims to make transactions easier and faster.
The company was founded in 2015 by Shola Akinsole and Ezra Olubi. PayStack aims to provide a solution for every Nigerian. With a strong team of 30+ people, PayStack offers products such as Paystack Invoice, Paystack Payment Gateway, Paystack Mobile Wallet, Paystack Merchant Account, and Paystack Web Hosting.
FairMoney
Another top company among the fintech companies is FairMoney. The idea behind FairMoney is simple: it provides credit and loan products to small businesses in emerging markets like Ghana, Kenya, Nigeria, Senegal, Tanzania, Uganda, and Zambia. These loans are secured against collateral such as real estate, vehicles, machinery, and inventory.
The platform works like this: A loan request goes into the system and gets processed within 24 hours. If approved, the money gets transferred to the borrower's bank account. There are no fees associated with the process.
Unlike traditional banks, FairMoney does not charge interest rates. Instead, borrowers pay fees based on how much money they borrow. For example, a borrower paying 0.25% per month on a $100,000 loan would pay $2,500 over one year.
In addition to providing loans, FairMoney offers microloans, which range from $1,000-$20,000. Borrowers can use these funds to start businesses or build assets such as houses. They can also buy food, medicine, or school supplies.
Paga
Paga is another fast-growing fintech company in Nigeria. Founded in 2009, Paga is headquartered in Lagos. It provides an alternative payment method for merchants who do not have access to traditional banking systems.
Paga works like this: Merchants connect their bank accounts to the Paga network via a smartphone application. Once connected, customers can send and receive money through the app. This eliminates the need for cash and reduces the risk of theft.
Merchants can also offer discounts to customers who pay with Paga. Customers can earn points when they shop at participating stores. Also, you can redeem points for gift cards, merchandise, or other rewards.
Paga currently has more than 1 million registered users. It plans to expand its services to include mobile phone bills, utility bills, and insurance premiums.
Cowrywise
Cowrywise is another financial institution that focuses on financial inclusion. It helps individuals save money by offering them low-cost savings accounts. Users who open an account with Cowrywise deposit money into it and set up automatic transfers from their checking account. When they reach certain thresholds, they get rewarded with bonus deposits.
Also, users can choose between fixed and variable rate accounts. Fixed-rate accounts give higher returns but require a minimum balance. However, varying rate accounts allow users to invest their money and earn high returns. Cowrywise is available in Nigeria, Ghana, Kenya, South Africa, and Rwanda.
PiggyVest
PiggyVest is one of the best online savings accounts in Nigeria. This FinTech company offers different saving plans, including PiggyBank, PiggyMoney, PiggyCash, PiggyMortgage, PiggyInvestment, PiggyCredit, PiggyDebt, PiggyInsurance, PiggyCar, and PiggyLife.
The PiggyVest app allows you to earn interest on your savings. This is because it pays you interest on the money you deposit into your PiggyVest account.
You can use the platform's piggybank feature or keep your savings separate. If you’re interested in earning high returns on your savings, then the piggybank option might be better suited for you.
With the piggybank feature, you can limit how much you want to save each month. The app will deduct the specified amount from your account daily and add it to the piggyvest balance. When you withdraw, you will receive the same amount of interest paid out to you over the chosen period.
Palmpay
Palmpay is a mobile payments solution provider based in Nigeria founded in 2014. It enables consumers to make purchases using their phones. Also, it uses NFC technology to facilitate transactions without needing a card reader.
With Palmpay, consumers can scan QR codes or barcodes to complete a transaction. Palmpay supports multiple currencies, including Naira, Euro, Pound Sterling, US Dollar, Canadian Dollar, Australian Dollar, Japanese Yen, Chinese Yuan, Indian Rupee, and Bitcoin.
In addition to making purchases, users can also transfer funds to friends and family members. They can also redeem loyalty points for gift vouchers.
Carbon
Carbon Financial Services Limited, one of the pioneering fintech companies in Africa, has been making waves over the past few years. With a mission to drive financial inclusion easier for Nigerians, it has increased from a simple online lender to a full-fledged digital bank offering cashless payments, mobile banking, and even insurance products.
The company started as a digital lending firm called Paylater. Then, it rebranded itself as Carbon Financial Services Limited and launched its app. Recently, the company announced the launch of its credit card, enabling customers to use their phone numbers to receive credit cards without needing to apply online.
Bundle
Bundle is an innovative Nigerian startup that provides a marketplace where people can buy and sell used items. The company helps individuals and businesses sell their old things at a fraction of the cost they would pay if sold through traditional channels.
It works by connecting buyers with sellers who are looking to purchase items. Sellers list their items on the site, and buyers browse them and select what they want. Once both parties agree on a price, the seller ships the item directly to the buyer.
eNaira Wallet
eNaira wallet is a mobile payment service provider in Nigeria. The company claims to have over 1 million registered users and processes more than $1 billion worth of transactions per year. Its services include mobile wallets, prepaid cards, merchant processing, remittance solutions, and other financial services.
Chippercash
Chipper Cash was founded in 2018 by Ham Serunjeogi and Maijid Moujaled. They are both entrepreneurs from the Middle East based out of San Francisco, CA.
The idea behind Chipper Cash came about when Ham and Maijid realized how expensive international remittances could be. In fact, the average cost of sending $100 is around $8.50 internationally. Most people couldn't send money overseas because of the high fees charged by Western Union and MoneyGram. So, they set out to change this.
The app allows you to send money across borders instantly via SMS. You simply enter the amount you want to transfer, choose the recipient, and hit "Send." Once the transaction is completed, you receive an email confirmation containing a link to download the receipt. All transactions are done in real time, and there are no hidden charges.
Accelerex
The Accelerex Group is a Fintech Company established in 2008. They are a payment gateway provider that provides financial services such as Mobile Money Transfer, Merchant Payments, and Electronic Clearing Services. Their vision is to become the most trusted and preferred choice for online payments in Africa.
Accelerex provides high-quality customer support and technical assistance to our clients. They work closely with our partners to ensure we deliver the best possible solution to meet their needs. Also, they are committed to providing innovative technology, superior customer service, and exceptional value to our clients.
E-tranzact
Nigerians use mobile money transfer applications from leading fintech apps like e-tranzact. The company is also one of the older FinTech companies in Nigeria and one of the best FinTech companies in the country. It is also one of the solutions to payment issues in Nigeria.
According to Mr. Toluwalope, the company's founder and chief executive officer, the Nigerian government had been working on the issue of payment systems since 2009, but nothing came out of it. He added that no single platform could handle all forms of payments. Further, he stated that most people still use cash to pay for goods and services.
Toluwalope said that he founded the e-tranzact because he wanted to make it easier for people to send money across borders. He noted that his company offers a solution to the problem of sending money abroad.
Bankly
Bankly is a mobile banking application that enables customers to access their smartphone accounts. It has partnered with some of the top banks in Nigeria, including Access Bank, Ecobank, First bank, Zenith bank, Diamond Trust Bank, GTBank, UBA, Standard Chartered Bank, and Stanbic IBTC Bank.
This app is available for Android and iOS devices, and you can download it from Google Play Store or the Apple App store.
Lidya
Lidya is another fintech company in Nigeria that uses AI and machine learning to help customers manage their finances better. It leverages data from different sources, such as social media, financial institutions, and third-party apps, to score each customer. The idea is to provide users with personalized recommendations based on spending habits, saving goals, and risk tolerance.
As part of their ongoing effort to provide customers with the most relevant information possible, they will launch Lidya's Credit Score feature. This tool provides real-time insights into a consumer's creditworthiness based on their previous payment history and current account activity. Lidya aims to help consumers make better financial decisions by providing a scorecard.
TeamApt
TeamApt is a fiscally responsible financial technology (fintech) company that builds digital banking, payment infrastructure, and mobile money products and services. With over 30 years of experience in the industry, it offers innovative solutions to banks and financial institutions worldwide.
The company also operates the most prominent mobile money platform in Africa. Over 10 million customers use its products and services every month.
Remita (SystemSpecs)
Remita is an online remittance platform that allows individuals to send money to friends and family members living outside Nigeria. Remita was launched in 2014 and is headquartered in Lagos, Nigeria. It is owned by SystemSpecs Limited, a subsidiary of SystemSpecs Group Plc., a UK-based software development firm.
Today, Remita is one of the largest eCommerce platforms in Africa. Remita offers various financial services, including mobile money transfers, credit cards, loans, insurance, investment banking, remittances, and merchant processing.
Bamboo
Bamboo is a mobile wallet that connects consumers with merchants through its proprietary B2C marketplace. Merchants post items for sale on the site, while buyers search for deals and purchase them using the app.
Bamboo works with more than 100,000 small businesses in Nigeria, helping them sell directly to consumers. In addition, the company helps consumers find local merchants and connect with them via chat, email, and phone calls.
Bamboo launched its stock trading app, Bambu. In addition to offering investors access to global markets, it provides price alerts, market data, and portfolio management tools.
The app allows users to invest in domestic and international shares listed on the NYSE, Nasdaq, London Stock Exchange, and Tokyo Stock Exchange. Users can track prices and gain insight into companies via news feeds and financial reports. They can also monitor portfolios and see how much money they have invested.
Users can use Bambu to buy shares directly from the app or transfer funds to their bank accounts. Once purchased, they can sell the shares within 24 hours.
Trove App
Trove is an online investment app that allows you to invest in Nigerian and US stocks. You can buy shares in companies like PepsiCo, Coca-Cola, Nestle, Johnson & Johnson, Microsoft, Apple, Facebook, Amazon, Twitter, Samsung, Tesla Motors, etc.
The app uses machine learning to recommend stocks based on your preferences. If you are interested in buying stocks, you can use your phone camera to scan barcodes of products to access information about those companies.
You can also choose to invest in ETFs and mutual funds. For example, you can purchase a Fidelity Growth Fund that invests in large-cap stocks such as Exxon Mobil, Chevron, Ford Motor Company, General Electric, etc.
There is also a Vanguard Diversified Equity Fund for investors looking to diversify their portfolios. This fund invests in small-cap stocks like Uber Technologies, Inc., Zulily Inc., Pandora Media Inc., Yelp Inc., etc.
Credpal
Credpal is one of the few fintech companies in Africa offering credit cards and Buy Now Pylons in Nigeria. In addition to providing customers access to credit cards, the Nigerian startup allows them to make purchases online via Cashback. This makes it easy to buy items without worrying about paying later.
Its credit card allows customers to make purchases online without worrying about paying them off immediately. Customers can use the card to purchase anything online, even items that require immediate payment, like groceries, utilities, rent payments, etc.
The company wants to change how Nigerians think about borrowing money. They believe there is no reason why everyone cannot borrow money to pay for things they want to purchase.
Mintyn Bank
Mintyn Bank is a microfinance institution (MFI) that offers loans to individuals and SMEs at affordable interest rates. It has branches across Nigeria, including Lagos, Abuja, Port Harcourt, Ibadan, Kano, Kaduna, Benin City, Enugu, Onitsha, Aba, Owerri, Jos, and more.
In 2017, Mintyn Bank partnered with Mastercard to offer digital banking services. Nigerian banks are known for charging high fees for basic transactions. However, Mintyn Bank charges only 0.5% per transaction.
Risevest
Risevest is a digital savings account that offers interest rates up to 6% per year. It was founded by two former Goldman Sachs executives who wanted to create a platform where people could save money easily.
The company has partnered with over 300 banks across the globe, including Barclays, HSBC, Standard Chartered Bank, and UBS. Risevest’s goal is to help people build wealth through saving. It operates in Nigeria, Ghana, Kenya, Tanzania, Uganda, Rwanda, South Africa, and Zambia.
Fint
Fint is Nigeria’s pioneer peer-to-peer lending marketplace. It allows individuals and businesses to borrow money from investors looking for high-yield investment opportunities.
Its mission is to make it easy for people in Nigeria to borrow money and invest in projects that matter to them. Also, its goal is to build a sustainable financial ecosystem where everyone wins.
The startup provides loans ranging from N500,000 to N25 million ($1,200 - $5,400). Investors receive monthly interest payments on their loans while borrowers pay back the principal amount plus interest over 3-6 months.
Wallet Africa
Wallet Africa is a fintech startup based in Lagos, Nigeria. Its goal is to become the leading digital wallet provider in Africa. The company offers mobile banking, remittance, prepaid debit card products, and e-commerce solutions.
The company says it wants to reach the following billion people coming out of Africa and offer them easy ways to pay, save and make purchases online. To do that, it has developed unique features like virtual dollar cards, similar to credit cards, and naira cards — physical versions of those same virtual cards.
Vbank by VFD
V bank is one of the fastest-growing digital banks in Nigeria and Africa. VFD Microfinance Bank founded it. This mobile application helps you manage your finances and you can easily access it anywhere. Besides managing your money, it also lets you keep tabs on your expenses and income, group budgeting, and set spending limits to help you save money.
The app lets you view your balance, transactions, and recent activity. You can even make payments online or offline. It also alerts about pending charges, and no fees are involved.
Eyowo
Eyowo is a financial app that allows you to send, receive, store and borrow money via SMS text messages. You can use it to pay bills, buy items online, transfer funds to friends, lend money to family members, or even invest in stocks and bonds.
Eyowo realized that many Nigerians don’t have bank accounts because they believe opening one is too expensive or complicated. This is why Eyowo launched its first product, Eyowo Pay, where customers could use their debit cards to transfer money into their accounts. Today, Eyowo has over 10 million registered users across Africa.
Fincra
Fincra is an innovative platform that connects consumers and small businesses with lenders. It does this by matching potential borrowers with microlenders (individuals) and larger institutions (banks, non-banking finance companies.). Fincra claims to be able to reduce the cost of borrowing for both parties.
It uses technology to match borrowers with lenders and vice versa. Borrowers apply through the website and get matched with lenders within 24 hours. Then, lenders review the applications and decide whether to fund the loan. If approved, the lender transfers the money directly to the borrower's account.
Migo
Migo is a Nigerian payment service provider that enables individuals and businesses to send and receive money using their phones. The company is a middleman between buyers and sellers and charges a fee for each transaction.
Migo started in 2013 to create a way for people to send him money without going through traditional banks. He used his savings to start the business. Today, Migo has more than 1 million active users and processes over $1 million in transactions monthly.
