In Nigeria today, 96% of all registered businesses are categorised as micro, small, and medium enterprises (MSMEs).
That’s nearly 40 million businesses, collectively contributing 48% to the national GDP. Yet, 95% of these SMEs fail within their first five years, usually due to lack of funding, poor access to banking tools, and limited business support.
With traditional banks retreating from riskier ventures, Moniepoint and FairMoney are stepping up. But in a country where only 1.3% of informal businesses earn above ₦2.5 million monthly, which of these lenders’ offerings go beyond quick cash? Which one truly understands what it takes to help an SME survive?
Let’s compare.
Business Model and Market Positioning
Moniepoint operates as a full-stack business bank designed specifically for SMEs and merchants in the informal economy. With over 600,000 active businesses onboarded and more than $1 billion in monthly transactions, it doesn’t stop at offering credit, it is building infrastructure.
The company’s ecosystem includes POS terminals, business accounts, access to credit, and tools for managing operations, tailored to low-income, cash-heavy enterprises.
FairMoney, in contrast, began as a mobile lender and has evolved into a digital microfinance bank. With a user base of over 5 million, mostly individuals and micro-retailers, FairMoney focuses on high-speed lending with minimal friction.
It processes over 15,000 loans daily, making it one of the busiest lenders in the market. But its SME support, while growing, is still very much credit-centred.
Verdict: Moniepoint provides a deeper ecosystem; FairMoney offers speed at scale.
Lending Approach and Credit Accessibility
Here, the difference goes beyond product to philosophy.
FairMoney provides loans of up to ₦5 million, approved in less than five minutes, with no collateral required. Interest rates can stretch from 2.5% to 30% per month, and repayment terms range up to six months. Credit decisions are made based on mobile metadata, BVN, and behavioural patterns, efficient, but impersonal.
Moniepoint, however, links credit access directly to a merchant’s transaction history and daily sales. It uses behavioural data drawn from its POS network and banking activity to offer context-specific loans, often with automated repayment via daily deductions. No app downloads or long forms, just performance-based access.
Verdict: FairMoney wins on speed and accessibility; Moniepoint wins on context and sustainability.
Support Tools Beyond Lending
This is where things start to diverge sharply.
Moniepoint offers SMEs:
- POS terminals
- Business current accounts
- Real-time sales dashboards
- Financial reporting tools
- Access to zero-debt and debt-based funding
- Insurance
- Agent and field rep support
- Formalisation support through its CAC partnership
FairMoney has done great in SME banking, but it still leans heavily on its lending app as the primary channel. Although it now offers savings products (like FairSave and FairLock), its business tools remain limited in scope.
Verdict: If your business needs more than a loan, Moniepoint offers the full toolkit.
Reach and Accessibility
FairMoney is completely digital, thriving on mobile penetration and app-based delivery. It’s well-suited for urban-based, tech-comfortable entrepreneurs. Its acquisition of Umba for $20 million in April 2025 is a signal of expansion, but primarily still in digital terms.
Moniepoint, on the other hand, is boots-on-the-ground. With thousands of field officers and a nationwide POS network, it reaches deep into underserved regions, including rural and peri-urban areas. Its services don’t rely on smartphone literacy or internet availability.
Verdict: Moniepoint wins on geographic and socioeconomic inclusion.
Customer Experience and Relationship Management
FairMoney is great in automated service. Its app is seamless and responsive. Customer queries are resolved through chatbots and live chat. But there’s little human follow-up once the money is disbursed.
Moniepoint provides dedicated relationship managers for its SMEs. There is human support for onboarding, training, dispute resolution, and transaction management. For many low-tech businesses, this level of handholding can mean the difference between adoption and abandonment.
Verdict: FairMoney is best for self-directed users. Moniepoint is better for relationship-driven businesses.
Strategic Moves and Financial Strength
FairMoney has posted commendable financial results:
- ₦121.9 billion gross revenue in 2024 (up 62%)
- Net profit of ₦5.85 billion (up 650%)
- Loan book of ₦168.5 billion
- Customer deposits grew by 73%
- Interest income reached ₦116.3 billion
It’s profitable, efficient, and growing fast.
Moniepoint, meanwhile, raised $110 million in late 2024 and secured a strategic investment from Visa in January 2025. It also acquired Kenya-based Kopo Kopo and invested in West Africa’s Payday. Beyond its numbers, Moniepoint is building infrastructure, not just capital.
Verdict: FairMoney leads on profit metrics and Moniepoint leads on strategic depth.
Social Impact and Formalisation
Moniepoint is pushing for systemic change. It has already helped formalise over 2 million businesses through its CAC partnership. Its 2025 Informal Economy Report revealed that 70.1% of supported SMEs have accessed credit, and 37.1% are women-led. It’s a fintech that is reshaping the structure of Nigeria’s informal economy.
FairMoney contributes through event sponsorships and mobile financial inclusion, but the impact is narrower and less structural.
Verdict: Moniepoint has a transformational vision. FairMoney is transactional.
Who Has the Edge?
The answer depends on what you’re looking for.
If you’re a small trader or micro-retailer who needs fast credit with no paperwork, FairMoney is an excellent option. It’s reliable, fast, and mobile-first.
But if you’re building a serious, long-term business and want a partner that offers tools, structure, and strategic backing, Moniepoint has the edge. It doesn’t just lend, it empowers. It doesn’t just serve users, it enables businesses.
In Nigeria’s SME economy, short-term survival and long-term growth are two different games. FairMoney helps you survive. Moniepoint helps you build.
