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

·
November 6, 2019
·
2 min read
OPay app

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.

Don't miss out on Africa's financial revolution

Keep up with the rapid pace of innovation in Africa's fintech landscape with Fintech Today. Designed for quick consumption, our exclusive newsletter, trusted by over 1,000 industry leaders, delivers the latest insights, trends, and breakthroughs right to your inbox.
Fintech Today

Give it a try, you can unsubscribe anytime. Privacy Policy.

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.

Ifeanyi is a desk reporter-turned administrator. Outside of work, I love to read and travel.
Ifeanyi is a desk reporter-turned administrator. Outside of work, I love to read and travel.
Subscribe To Techpoint Digest
Join thousands of subscribers to receive our fun week-daily 5-minute roundup of happenings in African and global tech, directly in your inbox, hours before everyone else.
This is 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! 
Digest Subscription

Give it a try, you can unsubscribe anytime. Privacy Policy.

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

Other Stories

43b, Emina Cres, Allen, Ikeja.

 Techpremier Media Limited. All rights reserved
magnifier