OPay transaction fee hike is aimed at keeping users within its ecosystem

by | Nov 6, 2019

Less than 24 hours ago, Opera-founded startup, OPay announced reviews to the cost of bank transfers on its platform. It first introduced a 2% transfer fee and then in a quick turnaround, settled for ₦45 for the first transaction of the day and a 1% charge for subsequent transactions.

What this means is that users no longer have the luxury of paying ₦10 for bank transfers on the platform. OPay, with an ₦18 billion ($50 million) financial arsenal, took on both Nigeria’s financially excluded population and the informal sector.

From providing mobile payments to offering bike, tricycle, and bus-hailing services, quick loans, and food delivery, OPay managed to become a super app in Nigeria. It is interesting to note that it was able to key into a sacred part of the Nigerian psyche — the love for awoof.


Suggested ReadOpay, ORide and the effects of a $50 million war chest

Advertisement


Many people became aware of OPay when its bike-hailing service launched in June 2019 with an outlandish ₦100 ($0.27) promo for one-time trips that would usually cost around ₦2,000 ($5.5). Since then OPay has extended promo offers on virtually all its divisional products.

Users in Lagos bought meals for less than a tenth of their original prices using OFood. Commuters also got rides for as low as ₦20 ($0.055) in Aba and ₦30 ($0.082) in Kano, where OPay debuted its tricycle-hailing services.

With this new development, one wonders if it’s been a good run so far and if the OPay honeymoon with customers is almost over.

Clarifying the situation to Techpoint, OPay Country Manager, Iniabasi Akpan, notes that OPay is still customer-focused while pushing the seemingly cheaper alternatives.

As things stand, peer-to-peer transactions do not attract any fees within the OPay app. Evidently, with the new policy, users are encouraged to do more transfers and payments within the app.

Additionally, with its cash-in and cash-out services, agents are on standby to support users with funding of their accounts as well as cash withdrawals.

“Our peer-to-peer activity alone has enabled us to provide thousands of agents with jobs while at the same time getting more people into the financial system. You’d agree with me that more people are excluded from the financial system than those accounted for in the system.” he said.

While also agreeing that OPay is still growing as a business, he thinks they won’t be here as a venture if the numbers don’t make sense from a business standpoint.

Advertisement

Ifeanyi Ndiomewese
Ifeanyi Ndiomewese

Ifeanyi is a desk reporter-turned administrator. Outside of work, I love to read and travel.

On January 22, 2022, be part of the largest gathering of innovators, startup founders, thinkers, programmers, policymakers, and investors in West Africa. Register free.

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Recent News

Subscribe to Techpoint Digest!

A daily 5-minute roundup of happenings in African and global tech, sent directly to your email inbox, between 5 a.m. and 7 a.m (WAT) every week day!

Please check your email to confirm your subscription.

Subscribe to Crypto Explorer

A monthly series featuring in-depth analysis on the cryptocurrency sector in Africa

Please check your email to confirm your subscription.

Subscribe to The Experts

A bi-weekly where tech career specialists take us on their journey from newbie to expert, and how they became successful in the industry.

Please check your email to confirm your subscription.

Subscribe to Founder's Table

A monthly series, where we catch up with founders in the startup ecosystem, learn about their failures, successes and a few tricks of the trade

Please check your email to confirm your subscription.

Copy link
Powered by Social Snap