Visa has recently become a new investor in African fintech company Moniepoint, as confirmed by the business banking and payments platform in a statement to TechCrunch. This strategic investment from the global payments giant aims to drive financial inclusion and support the growth of small and medium-sized enterprises (SMEs) across Africa.
According to sources familiar with the deal, Moniepoint, which announced a $110 million investment last October, has received over $10 million from Visa. The fintech’s Series C funding now exceeds $120 million and it is reportedly in talks with other investors for additional funding in the near future, all while maintaining its billion-dollar valuation. However, Moniepoint has chosen not to disclose the exact amount of Visa’s investment or any interest from other potential investors.
Moniepoint offers businesses and individuals banking accounts, credit, payments, and other financial tools through its app and network of agents. The fintech currently processes over 1 billion transactions monthly, with total payment volumes reaching $22 billion, representing a growth of over 25% in less than three months. Its rapid rise began during Nigeria’s Central Bank cashless initiative in early 2023 and has continued steadily, establishing it as a key player shaping the future of digital payments in the country.
Although Moniepoint operates across various payment channels in Nigeria’s digital payment market, Visa’s investment underscores the fintech’s position and potential in the country’s card value chain as a major issuer and acquirer. CEO Tosin Eniolorunda emphasized the significance of Visa’s investment, stating that it will enable strategic collaboration to expand the payment ecosystem and venture into more countries, which aligns with the company’s growth objectives.
One of the key areas of focus for both companies will be the introduction of contactless payments in Nigeria. Eniolorunda highlighted the central bank’s push for contactless services to enhance accessibility and facilitate micro-transactions, indicating that this partnership with Visa represents a step in the right direction. Furthermore, implementing contactless payments could significantly increase transaction volumes and potentially outpace other payment methods in the country, pending the resolution of regulatory and security issues.
Globally, Visa has observed that contactless card usage surpasses mobile wallets in many markets, positioning Moniepoint to lead this transition in Nigeria by offering contactless-enabled payment terminals and chip cards. Additionally, Moniepoint plans to leverage Visa’s Cybersource system for enhanced transaction visibility and integrate with Visa Direct for remittances and money transfers to expand its reach within and beyond Africa.
Visa’s investment in Moniepoint underscores its commitment to advancing digital economies in Africa, following previous investments in companies like Interswitch, Flutterwave, Paystack, and JUMO. By backing Moniepoint, Visa aims to digitize payments for SMEs in Nigeria and increase its share of the country’s card scheme market, where it currently trails behind competitors like Interswitch’s Verve and Mastercard.
As part of the investment, Visa will join Moniepoint’s board, joining other prominent backers such as Development Partners International, Google’s Africa Investment Fund, QED Investors, Lightrock, and British International Investment (BII). This collaboration signifies Visa’s dedication to enabling even the smallest businesses to thrive through innovative payment solutions, allowing SMEs to scale and unlock new revenue opportunities while streamlining their operations.
