Cześć,
Victoria from Techpoint here,
Here's what I've got for you today:
- MoMo PSB to compete with OPay, Paystack
- Hot fintech ideas for VCs to invest in
- Funke Opeke ends 14-year stint
MoMo to compete with OPay, Paystack
MTN Nigeria’s MoMo Payment Service Bank (PSB) is making a major move in Nigeria’s fintech scene by applying for two new licences: Payment Service Solutions Provider (PSSP) and Payment Terminal Service Provider (PTSP).
This move is a rare one, as PSBs like MoMo usually have limited licences. With these new additions, MoMo PSB can offer several financial services, which could shake up Nigeria's digital finance scene.
These new licences would allow MoMo PSB to handle payment terminals and manage backend processing for digital payments. This move opens up MoMo PSB to provide in-store and online transaction solutions for more merchants and customers.
Traditionally, PSBs were seen as “mini-banks” meant to boost financial inclusion in underserved areas by offering basic accounts and cashless transactions.
But now, with this dual licence, MoMo PSB could bring many payment options to the table, marking a shift in how telecom-led financial services operate in Nigeria.
For MTN, expanding MoMo PSB’s capabilities aligns with their goal of increasing digital financial reach. With millions of active wallets and a large agent network, MoMo is already a major player in Nigeria’s fintech space. The new licences could put them in closer competition with banks and established fintech firms, as they’d now be able to offer more versatile payment solutions.
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This move also hints at a regulatory shift in Nigeria. With so many Nigerians still unbanked, telecom-driven options like MoMo PSB could be crucial in bridging that gap.
If other PSBs follow their lead, we could see more competition and innovation in Nigeria’s fintech space, especially as telecom-led financial services gain more traction.
Hot fintech ideas for VCs to invest in
Africa’s fintech scene has exploded, raking in the majority of venture capital funding as startups aim to streamline fragmented financial systems and unlock new opportunities.
It’s no surprise, then, that all eight of the continent’s unicorns are fintech companies, sparking growth in related sectors along the way. But with countless fintechs offering similar services, critics argue the space is overcrowded.
Despite a funding slowdown over the past two years, investors still see massive untapped potential in the market.
So, where’s the gold hidden in Africa’s fintech sector? Chimgozirim asked four investors what they’re excited about and the fresh ideas they’re itching to back.
Let’s get started with Dotun Olowoporoku, General Partner at Ventures Platform. He highlighted two promising areas: embedded finance and micro-insurance.
According to Dotun, there’s untapped potential in embedding financial services into industries like retail and healthcare, helping everyday consumers access financing more easily.
Imagine being able to pay for your groceries or medical expenses over time — this kind of seamless integration could really drive up financial inclusion across the continent.
Curious to know which other fintech trends are catching investors' eyes? Dive into Chimgozirim's latest for the full scoop.
Funke Opeke ends 14-year stint
Funke Opeke, the visionary founder and CEO of MainOne, has officially stepped down, marking the end of a 14-year era that helped shape West Africa’s digital landscape.
Stepping into Opeke’s shoes is Wole Abu, who will lead MainOne’s West Africa operations.
Her departure comes as MainOne completes its integration with Equinix, which bought the company in 2022 for $320 million. Now, Equinix has big plans for MainOne's infrastructure, aiming to expand with more data centres across Nigeria, driven by the continent’s growing digital needs.
With Opeke's exit, MainOne is set for a new phase under Equinix, which plans to leverage the company’s robust submarine cable network and data centre assets, including the highly secure MDXi facility in Nigeria.
Equinix’s goals include strengthening West Africa’s connectivity by building more data centres in places like Victoria Island, Lekki, and Port Harcourt by 2026, to meet the rising demand from sectors like finance, media, and government.
The acquisition of MainOne is part of Equinix’s broader strategy to tap into high-growth regions worldwide, from Africa to India and Canada. Nigeria, as Africa’s largest economy, serves as a key entry point for Equinix's expansion plans, where they aim to bolster digital infrastructure in response to Africa’s booming internet and data needs.
Equinix is bringing in a strong focus on data security, energy efficiency, and operational resilience — essential in regions where infrastructure challenges are common.
Opeke’s legacy as a trailblazer will undoubtedly influence MainOne’s future, inspiring the next wave of African tech entrepreneurs.
In case you missed them
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What I'm watching
- 2. Behavioral Evolution
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Opportunities
- Paystack is hiring for multiple senior positions. Apply here.
- Moniepoint is hiring for various roles in the UK and Lagos. Apply here.
- Interswitch is looking for a Senior Backend Engineer. Apply here.
- Flutterwave is hiring for several roles in African countries, including Nigeria and Zambia, and the UK. Apply here.
- Pitch Friday is this Friday, November 8, 2024. Register here.
- Looking for an internship or remote role? Here's a list of 1,500+ opportunities in different fields (tech, finance, marketing, health and more). Check it out here.
- Follow Techpoint Africa's WhatsApp channel to stay on top of the latest trends and news in the African tech space here.
Have a wonderful Wednesday!
Victoria Fakiya for Techpoint Africa.
