Based in Lagos City, Nigeria, Digital banking Startup- E-Settlement now processes an average of ₦903,750,000 (approximately $2.5m) on a daily basis via its financial platform
It is not so unbelievable to hear that a financial platform in Nigeria actually pipes as much transaction on a daily basis, however, coming from a startup that is barely three years old is quite impressive.
The Fintech Startup was launched sometimes in November 2016, although officially commenced operation in 2017 under the supervision of its founding father- Olaoluwa Awojoodu, and ever since it has managed to stay relevant with its financial services that are targeted to various markets through its platform- a payment solution that is easy-to-use, affordable, secure and inclusive Africans.
The payment platform that now processes an average of US$2.5 million every day made it to this year’s Inclusive Fintech 50, a global competition that is spare-headed by MetLife Foundation and Visa to elevate early-stage fintechs driving financial inclusion. E-Settlement has made a huge impact in its short span, processing a tremendous NGN1 trillion (US$2.7 billion) in an overall transaction so far.
While all of these transactions are made across different platforms, it often targets different customer categories through its flagship solution known as PayCentre– an agency banking solution that indulges in regular banking such as cash-in and cash-out, funds transfer, and bill payment, in peri-urban and rural areas.
Speaking to Disrupt Africa, (a reliable source for information and commentary pertaining to the continent’s tech startup and investment ecosystem) on the note of bill payment in Peri-urban and rural areas; Olaoluwa explained that “These are regions where people have no access to banks or ATMs. Playcentre is targeted at the financially excluded or underserved, and in practice, creates new jobs and improves the economy of the community in which it is deployed,”
“People outside of Lagos have limited access to financial services. The banks are too far away. We bridge this gap by converting existing retail outlets like pharmacies and grocery stores into agent locations that can provide access to financial services,” Awojoodu added.
According to him, those are the major factors that were put into consideration before the company’s services were set-up in the respective locations. Also, he made mention that there is more than just one business module (service) in various places, stating that the likes of PayPad, a white-labeled mobile point of sale(mPoS) solution, and CashEnvoy, an online payment gateway have also be found useful across the locations of presence.
Unlike other non-profitable startups, E-Settlement has been yielding major profits for both it’s International and Local investors, seeing about 50 percent month-on-month growth in transactions made through its platforms.
“Uptake has been encouraging,” said Awojoodu. “As the country begins to shift from a cash-based economy to a cashless one, more people are beginning to accept and adopt systems and solutions that push the cashless mandate of the Central Bank of Nigeria,” he added.
According to the founding father, what is most important is what the agent feels about its solution and that, Awojoodu reported that it has always been positive feedback so far.
If you ever want to use the service, you do have to bear in mind that the platform charges a fee on every transaction, and of course so little that you can easily afford. Currently, E-Settlement operates in Nigeria, although recently extended to Ghana, while further extension plan to more countries is ongoing.