Moniepoint Inc., Nigeria’s leading business payments and banking services platform, has received a strategic investment from Visa, the global leader in digital payments. This investment not only solidifies Moniepoint’s position as a major player in the African fintech landscape but also highlights Visa’s commitment to advancing financial inclusion across the continent.

Founded in 2015 by Tosin Eniolorunda and Felix Ike, Moniepoint (formerly TeamApt Inc.) has become the go-to platform for small and medium-sized enterprises (SMEs) in Nigeria. Offering an integrated suite of services—including digital payments, business banking, credit facilities, and management tools—the platform processes over 1 billion transactions monthly, with a total payment volume exceeding $22 billion. Visa’s investment comes at a pivotal time for Moniepoint, as it seeks to expand its operations beyond Nigeria and further its mission to digitize Africa’s vast informal economy.

The Importance of Financial Inclusion for SMEs

Small and medium-sized enterprises are the backbone of Africa’s economy, accounting for over 90% of businesses and contributing approximately 60% of the continent’s GDP. However, access to formal financial services remains a major challenge for these businesses. With about 83% of employment in Africa rooted in the informal economy, there is an urgent need to bridge the financial inclusion gap to unlock economic growth.

Moniepoint addresses this gap by providing tailored financial solutions for African businesses. Its platform empowers SMEs to access banking services, accept digital payments, and manage their finances more effectively. This investment by Visa underscores the critical role fintech companies play in reshaping Africa’s financial landscape.

A Strategic Partnership to Drive Economic Transformation

The partnership between Moniepoint and Visa combines the local expertise of one of Africa’s fastest-growing fintechs with the global resources and technological prowess of Visa. This collaboration is expected to yield significant benefits for African SMEs, particularly in areas such as:

1. Digital Payment Infrastructure: Visa’s extensive global payments network will enhance Moniepoint’s ability to process secure and seamless transactions. By integrating Visa’s technology, Moniepoint can expand its digital payment offerings, making it easier for SMEs to conduct business locally and internationally.
2. Access to Credit: One of the key barriers for SMEs in Africa is access to affordable credit. Moniepoint’s existing credit solutions will likely be augmented through this partnership, enabling businesses to secure financing for growth and operational needs.
3. Technological Innovation: Visa’s investment will accelerate the development of cutting-edge fintech solutions tailored to African markets. This includes innovations in mobile payments, e-commerce platforms, and AI-driven financial tools.
4. Scalability and Regional Expansion: Moniepoint’s ambitions to scale beyond Nigeria will be supported by Visa’s global reach and infrastructure. This expansion will not only benefit SMEs across Africa but also contribute to the continent’s broader economic integration.

Visa’s Commitment to Africa’s Digital Economy

Visa has long been a champion of financial inclusion and digital transformation in Africa. Its investment in Moniepoint is part of a broader strategy to foster the growth of digital economies across the continent. Andrew Torre, Regional President for Central and Eastern Europe, the Middle East, and Africa at Visa, emphasized this commitment, stating:

“Moniepoint has built an impressive platform that directly addresses the needs of Africa’s SMEs, a critical segment in enabling economic development. By making financial services and digital payments more accessible and efficient, Moniepoint is helping transform how businesses operate in Nigeria and beyond. We are excited to support their next phase of growth and innovation.”

This investment aligns with Visa’s ongoing initiatives to support African fintech startups. The company has previously partnered with organizations such as Flutterwave, Chipper Cash, and Paystack to expand digital payment access across the region.

Moniepoint’s Vision for the Future

For Moniepoint, Visa’s investment is a validation of its vision to empower African businesses at scale. Tosin Eniolorunda, Founder and Group CEO of Moniepoint Inc., expressed his enthusiasm for the partnership, saying:

“Visa’s backing is a strong endorsement of our vision to digitize and support African businesses at scale. Together, we aim to deepen financial inclusion, enabling SMEs to access the tools and resources they need to thrive in an increasingly digital economy.”

Moniepoint’s mission extends beyond providing financial services; it aims to create a society where financial happiness is accessible to all. By offering solutions that cater to the unique challenges faced by African businesses, Moniepoint is playing a transformative role in the continent’s economic development.

The Broader Impact on Africa’s Fintech Ecosystem

Africa’s fintech sector has experienced exponential growth in recent years, driven by a young, tech-savvy population and increasing mobile phone penetration. According to the International Monetary Fund, the continent’s fintech revenue could reach $30 billion by 2025. Investments from global players like Visa are instrumental in sustaining this momentum and ensuring that fintech innovations are inclusive and impactful.

Visa’s support of Moniepoint also highlights the growing importance of partnerships between established financial institutions and emerging fintech companies. Such collaborations not only bring credibility and resources to startups but also enable traditional players to stay relevant in an increasingly digital world.

Key Challenges and Opportunities

While the partnership between Visa and Moniepoint is poised for success, it also faces certain challenges:

• Regulatory Hurdles: Navigating the complex regulatory environments across African countries will require strategic planning and collaboration with local authorities.
• Infrastructure Gaps: Limited access to reliable internet and electricity in some regions could hinder the adoption of digital financial services.
• Consumer Trust: Building trust among SMEs and their customers will be critical to driving adoption of Moniepoint’s solutions.

However, the opportunities far outweigh the challenges. By leveraging Visa’s global expertise and Moniepoint’s deep understanding of local markets, the partnership has the potential to redefine Africa’s fintech landscape.

Looking Ahead

The investment from Visa marks a turning point for Moniepoint and, by extension, the African fintech ecosystem. As the partnership unfolds, it will serve as a blueprint for how global and local players can collaborate to drive meaningful change.

Moniepoint’s success story is a testament to the power of innovation, resilience, and a clear vision. With Visa’s support, the company is well-positioned to accelerate financial inclusion, empower SMEs, and contribute to Africa’s long-term economic prosperity.

As Tosin Eniolorunda aptly put it, “Together, we aim to shape the continent’s economic future, paving the way for a more inclusive and dynamic financial ecosystem.”

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photo source: Google

By: Montel Kamau

Serrari Financial Analyst

24^th January, 2025