In a bid to gain a foothold in Nigeria’s fintech market, PayZeep, a one-year-old startup, has partnered with the Amalgamated Union of App-based Transporters of Nigeria (AUATON) to provide ride-hailing drivers with a new payment solution.
Tired of being subject to commission fees and fraudulent transfers from passengers, Uber and Bolt drivers are increasingly seeking greater autonomy. PayZeep’s solution offers them just that, enabling them to receive payments directly from passengers using handheld point-of-sale (PoS) devices.
“By partnering with drivers, we are aiming to corner a segment of the payment market,” said Tobi Molagun, PayZeep’s Head of Sales and Business Development. “While major mobility companies rejected our integration, we saw an opportunity in partnering with the drivers union.” PayZeep offers merchant, agency banking, and payment terminal services in Nigeria
The move comes at a time when ride-hailing drivers in Nigeria are facing increasing challenges. Rising fuel prices, high maintenance costs, and the need to pay commissions to ride-hailing platforms have squeezed their earnings. Many drivers have resorted to taking offline trips to supplement their income.
PayZeep’s solution offers drivers of Uber, Bolt, InDrive and LagRide an opportunity to earn a commission on regular payments, giving them more control over their earnings. However, the company has imposed certain conditions. Drivers must complete a minimum of ten rides per day during a one-month pilot program, and they will also be required to pay a fee for the PoS devices.
While some drivers have expressed concerns about the daily ride target, PayZeep argues that it is necessary to ensure the viability of the program. The company also plans to offer drivers a commission on transactions processed through the PoS devices.
