7 Top fintech companies in Nigeria

In past years, entrepreneurs and individuals have struggled with accessible financial services because of challenges in the traditional banking sector. Remember the long wait you endured to open your first bank account? You had to queue for days!

Even after opening an account, you likely faced challenges over failure to make instant payments. You even had to spend time in line again to address failed transaction issues. Also, financial services remained limited since not everyone had easy access to an account.

Today, however, these challenges are becoming a thing of the past, thanks to the increase in fintech companies in Nigeria. With mobile banking, digital payments, and other innovations, Nigerian fintechs extend financial services to previously underserved communities, thus driving financial inclusion. 

This article covers top Nigerian fintech companies, their unique contributions, and how they impact the economy.

Key takeaways

• Before the rise of fintech companies in Nigeria, entrepreneurs and individuals struggled to access reliable financial services easily.
• Nigeria's increased mobile and Internet usage and rising demand for accessible financial services have contributed to the fintech sector’s growth.
• Beyond financial inclusion, the sector has significantly impacted employment, investment, and the country's economic development.  
• Nigeria’s top fintech companies are continually improving their services to further meet the needs of the people.

Overview of Nigeria’s fintech landscape

With 172 million mobile subscribers, Nigeria has 87% mobile penetration and by 2025, the number of smartphone users is projected to exceed 140 million. Also, the country’s Internet user penetration slightly increased from 26% in 2018 to 38% in 2022.

Also, the demand for accessible financial services and a youthful and tech-savvy population contributed to the growth of the list of fintech companies in Nigeria.  

Furthermore, the sector has significantly impacted employment, investment, and the country's economic growth. For instance, Akeem Lawal, the Managing Director of Interswitch Purepay, said in 2022 that the fintech industry has created over 20,000 jobs and supported over 530,000 businesses in Nigeria over the past years.

Top fintech companies in Nigeria

1. Moniepoint 

Founded in 2015 as TeamApt to provide infrastructure payment solutions to financial institutions, Moniepoint is among the top fintech companies in Nigeria. In 2019, it expanded to offer financial services directly to Nigerian businesses, and by 2023, announced a complete rebrand to Moniepoint. 

Here is a comprehensive overview of Moniepoint Inc., including its company profile and funding history:

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Funding History:

The CBN-licensed fintech provides services like POS systems, digital banking, loans, bill payments, business management tools, payroll, and insurance, supporting small to medium-sized businesses.

Moniepoint processed over five billion transactions worth $150 billion in 2023. It processes $17 billion monthly in 800 million transactions, has ten million business and individual bank accounts, and has 72 million monthly card uses on its terminals.

Ranked among the 2023 Financial Times’ list of Africa’s fastest-growing companies, Moniepoint achieved unicorn status after raising $110 million to fund its expansion across Africa. It also appointed an ex-Stanbic IBTC CFO, Bayo Olujobi, as CFO of its microfinance bank, indicating a potential move into commercial banking.

In the same year, it reported reaching over 640,000 mobile money agents. Moniepoint leverages online and offline strategies to enhance financial inclusion and increase competition. 

Beyond the above, reviews on Trustpilot, a platform for customer reviews and ratings, highlight security concerns with Moniepoint. Customers allege exploitation by scammers and limited support from customer service. In line with this, the company always cautions customers to avoid interacting with unverified social media handles.

2. OPay 

OPay is another CBN-licensed fintech company in Nigeria. The financial service platform, owned by Chinese billionaire, Yahui Zhou, offers services such as mobile wallet, payment solutions, POS, savings and investments, loans, bill payments, and utility services.

Here is a comprehensive overview of OPay, including its company profile and funding history:

Company Profile:

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The fintech is intentional about related services such as OWealth, SafeBox, Spend & Save, and Fixed, all designed to help customers deposit money and earn returns.

Recognised as one of the top 10 fintech companies in Nigeria, OPay also offers virtual cards, which it claims are accepted by over 40,000 online merchants, including Jumia, Konga, and even streaming platforms like Netflix. Customers can obtain a virtual card through its app for ₦800. It also offers physical ATM cards.

OPay has made headlines for reportedly setting up bank accounts without users’ consent, though it has refuted these claims. Techpoint Africa also reported last year on how fraudsters exploit the fintech’s loopholes to hijack identities — you can open OPay or PalmPay accounts with anybody's name.

Subsequently, OPay disabled the “verify with bank account” feature which allowed for the loophole. It has also introduced a new security feature, “Large Transaction Shield,” to protect against financial fraud.

As one of the fintech companies in Lagos and some other parts of the country, OPay says It aims to serve one billion users and ten million merchants and create one million jobs by 2031.

3. PalmPay

Launched in Nigeria in 2019 under a Mobile Money Operator licence, PalmPay is similar to OPay. Its app offers instant money transfers, bill payments, credit services, and savings. Unlike OPay’s multiple deposit and earn options, PalmPay provides target savings with 12% annual interest and fixed savings with 20% yearly interest.

PalmPay is one of the top ten fintech companies in Nigeria. Its distinctive “Recharge2Cash” feature allows MTN subscribers to sell airtime for cash. The company also offers a gift card feature for buying gift cards.

Over the years, the Chinese-owned fintech has grown to  25 million users and over 300,000 merchants. It boasts a 99.5% ten-second transaction success rate. PalmPay has also had issues with fraudsters exploiting security gaps to steal user identities.

4. Momo PSB

In April 2022, the Central Bank of Nigeria (CBN) granted a PSB licence to Mo Payment Service Bank (PSB), a subsidiary of MTN Nigeria. Since then, it has become one of the Nigerian fintech companies offering various services, including savings, insurance, remittances, and payment options.

Here is a comprehensive overview of MoMo Payment Service Bank (PSB):

Company Profile:

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With an active wallet growth from 701,000 in Q1, 2024 to 5.5 million in Q2, 2024, MoMo PSB allows users to operate offline by dialling *671# to open personal accounts with their phone numbers, fund the accounts, and start transacting.

MoMo PSB has applied for two new licences: Payment Service Solutions Provider (PSSP) and Payment Terminal Service Provider (PTSP). These licences enable MoMo PSB to manage payment terminals, provide backend processing for digital transactions, and compete with other Nigerian fintechs like OPay and Paystack.

Momo PSB recently launched outbound and inbound remittance services, enabling Nigerian customers to send money to 13 African countries, including Benin, Cameroon, Côte d’Ivoire, and Uganda through its app and USSD channels.

It also introduced a gift card service, enabling users to buy e-vouchers from their MoMo accounts for international online shopping and service payments.

Google Play Store reviews indicate areas for improvement in the fintech app. Users report issues with app lag, frequent password entry, a non-functioning fingerprint login, and the consistent need for an OTP on every login.

5. Kuda

Often referred to as “The Bank of the Free,” Kuda is another Nigerian fintech company aiming to make financial services more accessible. The fintech offers various services, including instant transfers, savings and investments, and loans. Its investment option, powered by Bamboo, an investment platform, allows users to buy and sell stocks. 

Here is a comprehensive overview of Kuda Bank:

Company Profile:

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CBN licensed Kuda in 2019 and has over 7.5 million users. It ranks among the top 50 fintech companies in Nigeria.

Kuda recently made headlines for fraudulent activities on its app, indicating the need for better security measures. Customer reviews have also reported that the app requires frequent updates, making it difficult to use.

6. Paystack

Founded in Lagos in 2015, Paystack provides payment processing services, including Virtual Accounts for bank transfers. It has processed over 170 million transactions for 60,000+ businesses, partnering with Wema, Access, and Zenith Banks.

Here is a comprehensive overview of Paystack:

Company Profile:

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Paystack allows businesses to receive payments from customers anywhere in the world using a Mastercard, Visa, or Verve card. In July 2024, it processed ₦1 trillion worth of transactions. In 2020, Stripe, a US payments company, acquired Paystack for $200 million to expand into Africa. 

The fintech streamlines transactions for millions of Nigerian consumers who lack access to traditional banking services, enhancing financial inclusion through easy integration of payment systems on its platform. 

6. Flutterwave

Flutterwave also provides payment processing services that enable businesses and individuals to send and receive money across borders. It offers online checkout, allows users to create free eCommerce websites to sell globally, and generates professional invoices.

It supports over 30 currencies and processes an average of 500,000 payments daily. In August 2024, it announced that Nigerian online merchants can now accept American Express payments, enhancing cross-border trading.

Here is a comprehensive overview of Flutterwave:

Company Profile:

Funding History:

Impact of fintech on Nigeria's economy

The fintech sector has significantly contributed to Nigeria's economy by enhancing financial inclusion, creating jobs, and attracting foreign investment. This section examines the broader economic impact of fintech companies in Nigeria.

• Financial inclusion: The growth of fintech in Nigeria has improved financial inclusion, making financial services more accessible to more people and reducing the gap between those with and without access to banking.

• Job creation: The growth has further motivated interests in data analysis, customer service, and digital marketing, creating over 20,000 jobs and supporting over 530,000 businesses in Nigeria over the past years. 

• Foreign investment: The sector's growth has also attracted foreign investment, enhancing the country's digital infrastructure. For instance, Nigeria recently got a ₦2.8 billion Google grant to advance AI talent development.

Challenges and opportunities in Nigeria's fintech sector

While the fintech industry in Nigeria is booming, it faces challenges such as regulatory hurdles, cybersecurity threats, and infrastructure limitations. This section explores these challenges and the opportunities for growth and innovation.

• Regulatory challenges: The lack of unified policies is a major challenge for the sector, especially for aspects like cryptocurrency. With multiple agencies involved, there's been a lot of inconsistency in policymaking. 

• Infrastructure limitations: Poor Internet penetration in some areas with poor power supply affects financial services. Because of the poor power supply, telcos, which facilitate easy activities in the sector, have even considered load shedding recently. 

• Cybersecurity threats: There has been a surge in cyber threats due to inadequate cybersecurity measures in the fintech sector. The Economic and Financial Crimes Commission Chairman, Ola Olukoyede, recently revealed that Nigeria loses over $500m to cybercrime annually. 

Despite challenges, fintech companies in Nigeria are improving financial inclusion, especially in rural areas. Companies like MoMo PSB offer instant online and offline transfers, enabling users in areas without stable Internet connections to use shortcodes for transactions.

FAQs about fintech companies in Nigeria

What is a fintech company?

A fintech company is any company that uses technology to provide financial services. It integrates technology with financial services to enhance or automate banking and financial processes for businesses or consumers.

How many fintech companies are there in Nigeria?

Nigeria hosts a vibrant fintech ecosystem with numerous companies; estimates suggest that over 200 fintech firms are operating there.

What are the benefits of fintech in Nigeria? 

Fintech companies in Nigeria have improved financial inclusion, provided easier access to financial services, and fostered economic growth through innovation.

How do fintech companies make money?

Fintech companies generate revenue through various models, including transaction fees, subscription services, lending interest, and partnerships with traditional financial institutions.

Conclusion

Nigeria's fintech sector continues to thrive, driven by innovation and a commitment to addressing the financial needs of its population. The companies highlighted in this article exemplify the dynamic and transformative nature of fintech in Nigeria.