Global payments giant, Visa has invested in Nigerian fintech unicorn Moniepoint, joining a roster of high-profile investors including Google and Development Partners International. The investment, in the region of $10 million, underscores Visa’s commitment to expanding contactless payments across Africa, a market dominated by cash-based transactions.
Moniepoint, founded in 2015, is a leading player in agent banking, boasting over 200,000 Points of Sale (PoS) agents. The company claims to process over 1 billion transactions monthly, with a total payment volume exceeding $22 billion.
“Visa’s backing is a strong endorsement of our vision to digitize and support African businesses at scale, said Tosin Eniolorunda, Founder and Group CEO of Moniepoint in a statement. “Together, we aim to deepen financial inclusion, enabling SMEs to access the tools and resources they need to thrive in an increasingly digital economy. Given that about 83% of African employment is in the informal economy, we are keen to widen access and participation in the formal financial system and drive economic growth across Africa.”
“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,” Andrew Torre, Regional President, Central and Eastern Europe, Middle East and Africa at Visa added.
This investment follows Moniepoint’s Series C funding round, which catapulted the company into unicorn status. Visa’s previous investments in Interswitch,and Flutterwave have yielded similar outcomes
Interswitch achieved unicorn status in 2019 after Visa’s $200 million investment in the company. With Visa’s new fixation on contactless payment and Moniepoint’s agent banking system, there is a possibility that this partnership can deliver more value for customers.
Contactless payments hold immense potential in Africa, where cash remains king. The continent boasts a retail market valued at over $1.4 trillion, with a significant portion driven by informal traders. By facilitating seamless contactless transactions, Visa and Moniepoint can address the challenges of cash-based microtransactions, which account for a substantial portion of daily economic activity.
