Fintech is Transforming the Nigerian E-commerce Industry
Fintech is short for Financial Technology, which means the application of innovative technology to enhance products and services in the financial space. In recent times, Nigeria seems to be experiencing a new wave in the rise of financial technology in her industry. Fintech startups leverage technology to automate financial services and processes within businesses in and out of Nigeria.
Fintech has a broad application and is fast growing within businesses, serving both consumers, corporates and businesses around the world. The application ranges from mobile banking and insurance to investment apps, cryptocurrency wallets, stock trading, credit scoring and loan platforms. Fintech companies integrate smart technologies like Artificial Intelligence (AI), blockchain and data science into traditional financial sectors to make them secure, faster and more efficient for transactions.
As Nigeria is now home to over 200 fintech companies, the fintech space is seen as highly competitive as emerging startups compete for market share and inclusion. Some of Nigeria’s fintech companies leading economic change include Piggyvest, Carbon, Interswitch, E-Transact, Remita, Vogue Pay, Kuda Bank, Flutterwave, Terrapay, Fairmoney, Paga, Flutterwave, Paystack, Barra Finance, Branch and lots more.
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In 2020, Companies like Flutterwave and Paystack launched e-commerce strategies to help small businesses who were affected by the pandemic into a smooth online transition, without having to build infrastructures themselves. Flutterwave Store which was launched in April pulled over 1000 sign-ups within 30 days of launch. By July, the number rose to over 5000 users and later grew to 17,000 at the end of November.
Likewise, Paystack Commerce launched in June received a huge reception. The designs and other attractions on the platform prompted observers to start a business and display it on the platform for a wider audience. However, with the success recorded, Paystack Commerce upgraded the inventory management and announced the StoreFronts feature earlier in December.
The efforts made by these companies and more simply indicate the advancement of customer experience and vendor capabilities in African retail. Additionally, they will continue to uphold their mission of enabling financial inclusion and processing payments from across the world.