Nigeria FinTech Landscape - Impact Assessment slide image

Nigeria FinTech Landscape - Impact Assessment

Nigeria FinTech Landscape The FinTech space is expected to continue to grow, particularly across 5 sectors (2/2) White spaces Offline payments MSME lending Why Cash is still significant in the Nigerian market but CBN push for cashless is making cash more expensive (e.g. NIP transactions less than NGN 20k costs less than an ATM withdrawal) ■ As mobile wallets become more mainstream, people will need use cases to drive more offline transactions ■ Underserved market that is growing Increasing digitization of payments (via both online & offline payments) will make it easier to lend to MSMEs National asset registry will make it easier to fund SMEs Early indicators POS payments are 6X the size and growing faster than online payments at 40% CAGR (vs 28% for online payments) ■ Consumers are already making retail payments using mobile apps and USSD, but process still has friction for merchants Retail lenders like Carbon are starting to explore the MSME lending space ■ SME focused lenders like Lidya and Lendigo are emerging, though still relatively small in size Opportunities ◉ Offline payments infrastructure platform (similar to UPI¹) Merchant acquisition Merchant service providers (e.g. POS, loyalty) ■ Invoice discounting Value chain financing Credit scoring & lending for SMEs 1. Unified Payment Infrastructure SOURCE: Expert interviews, Stakeholder interviews, web search, Team analysis 60 EFINA
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