Visa, the global payments giant, has invested in African fintech Moniepoint, a business banking and payments platform, to drive financial inclusion and support the growth of small and medium-sized enterprises (SMEs) across Africa. The strategic investment, reportedly over $10 million, is part of Moniepoint's Series C funding round, which now exceeds $120 million.

Moniepoint, which provides businesses and individuals with banking accounts, credit, payments, and other financial tools through an app and a network of agents, has seen rapid growth since Nigeria's Central Bank cashless drive in early 2023. The fintech now processes over 1 billion transactions monthly, with total payment volumes reaching $22 billion, a growth of over 25% in under three months.

The Nigerian digital payment market, which spans multiple channels including electronic transfers, ATMs, POS devices, mobile agents, and web payments, is a significant opportunity for Moniepoint and Visa. In 2023, businesses and consumers completed transactions worth approximately $400 billion, with electronic transfers dominating the market, accounting for nearly 90% of these transactions. Moniepoint operates across most of these channels, and Visa's investment highlights the fintech's position and potential in Nigeria's card value chain as both a major issuer and acquirer.

According to Moniepoint's CEO, Tosin Eniolorunda, the partnership with Visa will enable the fintech to "strategically collaborate to continue to grow the payment ecosystem and expand to more countries, which is a key goal for us." One area of focus will be introducing contactless payments, which the central bank has indicated is necessary to drive accessibility and conduct micro-transactions. Visa notes that contactless card usage surpasses mobile wallets in many markets, and Moniepoint is well-positioned to lead this transition in Nigeria.

Moniepoint will also leverage Visa's Cybersource system to gain better visibility into transactions and integrate with Visa Direct for remittances and money transfers as it looks to expand into markets within and outside Africa. Visa has a history of investing in Africa's payment infrastructure, backing players like Interswitch, Flutterwave, Paystack, and JUMO over the past decade.

Visa's investment in Moniepoint marks its entry into Nigeria's SME market, aiming to digitize payments for them and increase its share of the country's card scheme market. Currently, Visa lags behind Interswitch's Verve and Mastercard in cards. The latter two have also started making inroads in the tap-to-pay opportunity.

Andrew Torre, Regional President, Central and Eastern Europe, Middle East and Africa at Visa, stated that "Visa's investment in Moniepoint is the latest example of our long-standing commitment to advancing digital economies in Africa." The investment will enable even the smallest businesses to thrive through innovative payment and software solutions that allow SMEs to scale and open new revenue opportunities while streamlining their operations.

Visa will join Moniepoint's board following its investment, alongside other prominent backers including Development Partners International, Google's Africa Investment Fund, QED Investors, and British International Investment (BII), among others. The investment is a significant milestone for Moniepoint, which has seen rapid growth and expansion in recent years.

The partnership between Visa and Moniepoint is expected to have a significant impact on the African fintech landscape, driving financial inclusion and supporting SME growth across the continent. As the digital payment market continues to evolve, this investment is a key step towards advancing digital economies in Africa.