This is the viewpoint of stakeholders that gathered for the second edition of Payment Forum Nigeria (PAFON 2.0) held recently in Lagos.

Delivering a keynote address on the theme, “Bridging the Customer Experience Gap for Financial Inclusion Using AI”, Ebehijie Momoh (Mrs.), the managing director and chief executive officer of AfriGoPay Financial Services Limited, said that with 64% of Nigerian adults being financial included the country has made immense progress in that regards.

She said that between 2012 till date, the country has recorded robust regulatory reforms, especially the launch of the Bank Verification Number (BVN) in 2014 making it easier to identify and track customers across different banks.

“This initiative enhanced the credibility of the financial sector and increased confidence in formal banking systems.

The growth in adoption of smartphones has also helped the financial sector to leapfrog financial inclusion. Nigeria has 142.16 mobile internet subscriptions with an average consumption of ~7.04GB / month as of January 2025. If you juxtapose it to the 15.9% decline in shipments of feature phones to 18.8 million units in Africa as at Q1 2024, you will understand that the uptake in smartphones has helped us a great deal.

Mrs. Momoh who spoke through Mr. Munachi Duru, the head of Innovation and Strategic Partnership at AfriGoPay, said the adoption of artificial intelligence banking gave birth to solutions like smile identity, a leading KYC verification provider launches facial recognition capabilities in Nigeria as neobanks and commercial banks are deploying AI-based KYC verification tools, enabling cheaper and efficient customer acquisition and servicing.

In her goodwill message, Mrs. Uche Uzoebo, MD/CEO, Shared Agent Network Expansion Facilities Limited (SANEF) Limited said that with progress made in accelerating financial inclusion to unbanked and underbanked communities in Nigeria, SANEF has leveraged Artificial Intelligence (AI) as the next step to advancement in financial services in the country.

She noted that as technology evolves rapidly within the financial ecosystem, Financial Inclusion must continue to be at the center of the nation’s progress.

According to her, agent banking has been a game-changer in expanding financial inclusion across Nigeria.

“By deploying agents in underserved areas, we have brought financial services and banking products such as account opening, cash in, cash out, bill payment, transfers and other services closer to the unbanked and underserved,” she said.

Speaking during a panel session, Mr. Ibirogba Oluwagunwa, chairman, Lagos State Chapter of the Association of Mobile Money & Bank Agents in Nigeria (AMMBAN), spoke of lack of collaboration and slow institutional drive towards AI as key barriers hindering digital inclusion.

He harped on the need for information sharing among fintech operators, and improved free flow of information to consumers. “The human barrier angle needs to be addressed. Fintechs need to be pushed to move forward, AI cannot operate itself.”

In his contribution at PAFON 2.0, Mr. Chika Nwosu, managing director of PalmPay, reiterated the need to reach the consumers with simple format communication and education style.

He said operators should create awareness and design consumer​-centric approach in developing any products. This will not only draw the consumers towards the product, but also generate trust and ease the use of such products.

Focusing on the use of AI to ensure reach, inclusion and security, Azure Application and AI Specialist at Microsoft UK, Olusoji Solomon Adeyemo, spoke on the need for AI and Blockchain in the bid to extend services to rural communities and the unbanked.

According to him, “AI, Blockchain and CBDs are shaping the future of payment, and there is a serious need for education. We need to align with global trends in new tech adoption.”

While noting that AI can ensure reach, Adeyomo said blockchain will also create digital identity that is exclusive and will promote digital financial inclusion.

In her position, Oluwabunmi Ogunyemi, the customer support lead at Moniepoint MFB, proffered physical and digital meet with customers, even in rural areas, as a viable means of inclusivity.

Also speaking, Olusegun Afolabi, co-founder of Face Technologies UK Ltd., called for improved collaborations among stakeholders in the financial sector.

According to him, the fintech companies must also embrace effective identification solutions, focusing on biometrics and card technologies to ensure topnotch security for users.

Earlier in his opening remarks, Mr. Peter Oluka, co-Convener of the Forum, noted that the financial inclusion journey in the country has come to a crucial juncture where over 30 million adults are still financially excluded, many of whom reside in rural areas or belong to vulnerable demographics.

He noted that despite 12% growth in access to formal financial services between 2020 and 2023, as recorded by the EFInA Access to Financial Services Survey 2023, challenges still exist that hinders the unlocking of the potentials of digital payments to drive inclusive growth in Nigeria.

He further posited: “As digital infrastructure grows and fintech innovation accelerates, we must channel these advancements toward building a more inclusive, secure, and trusted financial ecosystem.

This is not just about transactions — it’s about empowerment, opportunity, and economic participation for all.

Nodding in agreement, Mr. Chike Onwuegbuchi, co-Convener, PAFON, reiterated the need for all stakeholders in the financial payment industry, including regulators, to participate in forums as PAFON, to map out, growth strategies with consumers and other strata of the ecosystem.

He promised to invite security stakeholders, such as the EFCC and others in subsequent editions of the event. This will help give insight into security concerns in deployment of products and services in rural and unbanked communities.

Payments Forum Nigeria (PAFON) is a platform dedicated to shaping the future of digital payments and financial services in our country.

PAFON 2.0 will be held on Thursday, April 10, 2025 at the Function Room 1, Oriental Hotel, Lekki Road, Lagos by 9am (WAT).

Register here to attend: https://shorturl.at/IPOjA

The keynote speaker alongside the special guest, Uche Uzoebo, the MD/CEO of SANEF, and others lined-up for the Forum, will focus on the theme: “Bridging the Customer Experience Gap for Financial Inclusion Using AI”, which underscores the urgent need to safeguard digital transactions against emerging threats while ensuring seamless financial inclusion and innovation.

Mrs Momoh is leading AfriGO vision to deliver a seamless, secure and efficient payment card scheme which facilitate faster transactions, reduce card operating costs to enhance the overall user experience for stakeholders, partners, and cardholders.

With over 30 years of progressive leadership experience in the Nigerian financial and payment industry, she has a distinguished career marked by strategic vision and a commitment to delivering exceptional results.

She has consistently demonstrated her ability to drive large-scale operations, enhance profit and loss growth, and lead high-performance teams.

Also, Mrs. Uche Uzoebo is a passionate and renowned expert in financial inclusion, digital transformation, inclusive finance and women empowerment in Nigeria.

Under her leadership, SANEF Limited is committed to achieving excellence, greater growth, development and expansion to stakeholders in the ecosystem.

Speaking ahead of PAFON 2.0, Mr. Chike Onwuegbuchi, the co-convener, said that PAFON 2.0 is open to payment service providers, fintech firms, banks, regulatory bodies, cybersecurity experts, and all stakeholders invested in the future of digital transactions in Nigeria.

Attendance

Register to Attend: https://shorturl.at/IPOjA 

The discussion delved into understanding and navigating regulatory frameworks, fostering a culture of resilience through risk management, and exploring case studies and best practices.

Moderating the session at the NFW was Yeye Nwidaa, Partner, Jackson, Etti & Edu, with Panelists including Tajudeen Mustapha, Head, Risk Management and Compliance at Xpress Payment Solutions Limited, Dr. Krish Ranganath, Regional Executive West Africa, Africa Data Centre, Gbolahan Atoyebi, Head, FSI Sales, MainOne, and Precious David, Associate, Udo Udoma & Belo-Osagie, UUBO

The discussion commenced with addressing compliance challenges in the Fintech sector. Various regulatory bodies, including CBN and SEC, oversee different aspects of Fintech, making compliance multifaceted. The speakers stressed the importance of understanding regulations and seeking legal counsel to ensure compliance.

Nigeria Fintech Week: Keynote Address by Dr. Akinwumi Adesina, President of the African Development Bank

Key Points:

1. Regulatory Understanding and Compliance:

• Comprehensive Compliance: Fintech companies must align their operations with a variety of regulations from different regulatory bodies.
• Legal Counsel: Engaging internal and external legal counsel is crucial. Startups should consult legal experts to navigate complex regulatory landscapes.

2. Risk Management and Culture of Compliance:

• Cultivating a Compliance Culture: Senior management should instill a culture of compliance and risk management throughout the organization.
• Continuous Training: Ongoing training and education for employees are essential. Regular training programs keep the workforce updated and aware of compliance requirements.

3. Strategies for Building Resilient Fintech Organizations:

• Innovation and Adaptability: Fintech companies need to innovate continuously. Adaptable strategies are vital to stay relevant and compliant in the rapidly changing technological landscape.
• Global Perspective: Fintech innovations should be viewed globally. Solutions should be scalable and adaptable for diverse markets.

4. Technological Innovation and Compliance:

• Technological Advancements: Fintech innovations, while revolutionary, must adhere to regulations. Regulatory bodies evolve, and companies need to keep pace with these changes to remain compliant.
• Balancing Innovation and Regulation: Innovations should align with regulatory standards. Striking a balance between creativity and compliance is crucial for sustainable growth.

5. Importance of Internal and External Legal Support:

• Internal Legal Counsel: Having an internal legal team ensures constant scrutiny of operations, identifying potential compliance gaps.
• External Legal Support: External legal experts provide specialized knowledge and insights, guiding companies through intricate regulatory frameworks.

6. Cultural Shift and Adaptability:

• Top-Down Approach: Compliance culture must start at the top with senior management setting an example for the entire organization.
• Cascading Compliance: A bottom-up approach ensures that compliance practices permeate every level of the organization, creating a holistic compliance framework.

7. Data Protection and Technological Risks:

• Data Security: Data protection is paramount. Fintech companies must invest in robust cybersecurity measures to protect customer data.
• Technological Risks: Risks associated with new technologies, such as cloud services and digital transactions, necessitate careful consideration and proactive risk management strategies.

The panel discussion highlighted the intricate interplay between technological innovation and regulatory compliance in the Fintech sector. Fintech companies need to balance innovation with a deep understanding of regulatory requirements, fostering a resilient culture of compliance and adaptability. In embracing a proactive approach to risk management and staying abreast of evolving regulations, Fintech organizations can thrive in the dynamic landscape of financial technology.

Fireside Chat for the Nigeria Fintech Week Day one focused on Building Resilience in the Fintech Ecosystem: Experience from Executives

The panellists were Kofo Akinkugbe, CEO, Secure ID, John Obaro, Founder & GMD, SystemSpecs, Ebehijie Momoh, Country Manager & Area Business Head, West Africa, Mastercard, while the moderator was Olumide Soyombo, Co-founder, Bluechip Technologies Ltd.

These industry leaders spoke on the challenges and opportunities shaping the African FinTech landscape. The conversation revolved around critical themes such as sustainable business models, regulatory compliance, customer-centric innovation, talent acquisition, and adaptability in an ever-changing Fintech environment.

Understanding the African FinTech Landscape: Diverse Challenges, Unique Solutions

Acknowledging the diversity within African markets, the panel emphasized the need to move away from the notion of a one-size-fits-all solution. Africa, and particularly Nigeria, presents a unique blend of cultures, economies, and consumer behaviors, making it essential for Fintech companies to adapt dynamically to cater to diverse needs.

One of the prominent challenges discussed was the race to raise funds versus the authenticity of products. It was noted that while fundraising is crucial, it shouldn’t overshadow the essence of creating genuine, problem-solving products. Panelists stressed the importance of understanding the market deeply, ensuring that innovations align with real needs rather than just financial trends.

Navigating Challenges: Cybersecurity and Customer-Centric Approach

The conversation then shifted to the challenges that keep Fintech executives awake at night. Cybersecurity emerged as a top concern, with panelists highlighting the need for continuous vigilance in an increasingly digital landscape. Understanding the dynamics of cyber threats and addressing them proactively became a focal point.

Additionally, the discussion emphasized the significance of customer feedback. FinTech companies need to evolve into more social entities, understanding the pulse of their consumers. This shift toward customer-centricity not only enhances the quality of products and services but also fosters trust and loyalty among users.

Embracing the Future: Opportunities Amidst Challenges

Despite the challenges, the panelists expressed optimism about the future of Fintech in Africa. They recognized the tremendous opportunities that lie in building solutions for the digitally native generation. With a growing youth population having unprecedented access to the internet, there is enormous potential to develop innovative digital solutions catering to their needs.

The Nigeria Fintech Week Day one panelists also stressed the importance of learning from failures. While success stories often take the spotlight, understanding the reasons behind failures can provide invaluable insights. Embracing failures, analyzing them critically, and deriving lessons are essential for the growth and resilience of the Fintech ecosystem.

These are the findings of the second edition of the Mastercard Eastern Europe, Middle East and Africa (EEMEA) SME Confidence Index.

The 2021 inaugural SME Confidence Index delved into the impact of the pandemic on SMEs across sectors, products and services, and how they are embracing a digital future.

As a continuation, the second edition of the survey reveals that while 63% of SMEs across Nigeria are confident about business growth, an overwhelming number of businesses (97%) believe that omnichannel payments present the biggest opportunity for them.

As companies recover from the pandemic and return to growth phase, the research shows that 55% of SMEs in Nigeria are concerned about rising cost of doing business in 2023 and access to capital funding (42%).

Six out of 10 SMEs in Nigeria are optimistic about the future

78% of SMEs project increase or similar revenues in 2023. The survey reveals that 63% of micro and small businesses are optimistic about the next 12 months while their medium-sized counterparts run behind at 33%.

The survey highlights top three areas of growth opportunities for SMEs in Nigeria – access to training and development (95%), digitizing business (93%) and access to better data, analytics and insights (89%).

Insufficient access to credit and inflation remain key factors inflation business growth in Nigeria

SMEs in Nigeria have identified rising cost of goods and services (74%), inflation (67%) and insufficient access to credit (42%) as factors impacting business growth.

Other factors include lingering effects of the pandemic (27%), unemployment (24%), red tape and regulations (15%).

“We are encouraged by the findings of the Mastercard SME Confidence Index, which demonstrates the resilience and optimism of SMEs in Nigeria. It is inspiring to see that 78% of SMEs project similar or increased revenues in 2023. At Mastercard, we are committed to supporting small businesses and merchants by leveraging our network, technology, and partnerships. In an evolving commercial landscape with changing spending patterns, we recognize the importance of connections and inclusivity. We will assist businesses in accessing credit and maintaining stable cash flow. We will provide them with valuable insights through analysis and digital training. Moreover, we will empower them to embrace digital solutions, enabling fast electronic payments, fostering business growth, and safeguarding against cyber threats,” said Ebehijie Momoh, Country Manager & Area Business Head for West Africa at Mastercard.

Mastercard leverages its extensive network, state-of-the-art technology, and global partnerships to help SMEs to adapt to changing commercial environments and new spending patterns. The company works with governments and the private sector to build synergies that advance financial inclusion and motivates consumers and merchants to support small businesses.

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This move is expected to boost digital payment acceptance at small and micro enterprises in Nigeria, Ghana, Kenya, Uganda, and other key markets in sub-Saharan Africa while supporting consumers’ preference for safe and seamless digital payment.

PayContactless leverages Mastercard Tap on Phone, a simple and cost-effective digital payment technology developed for micro and small businesses and tradesmen who tend to operate in a cash economy due to the costs and complexity of obtaining traditional point of sale devices.

The solution turns Android smartphones into secure payment acceptance devices for contactless cards, mobile wallets and even smartwatches — with no additional equipment or set-up costs.

Small businesses will benefit from a faster checkout in-store, as well as be able to easily accept card payment on delivery.

This milestone makes Prophius the first fintech in West Africa to be certified by Mastercard for Tap on Phone and furthers its mission to enable commerce and create seamless payment experiences at the storefront.

“This is the next phase for us in our quest to enable commerce at the storefront in a simple, cheap, and effective way,” says Olugbenga Adams, Founder & CEO at Prophius.

“This is especially important for small businesses who need to accept payments without the associated hardware cost and partners including Financial Institutions and Fintech companies who want to enrich their existing products with contactless payment acceptance.”

PayContactless provides consumers with a checkout experience that is flexible, seamless, intuitive and secure.

To pay, the customer simply taps their contactless card or wearable against the merchant’s device. If the transaction amount exceeds the cardholder’s verification limit for contactless, the customer will be required to enter their bank card PIN onto the merchant’s phone. This is safe for the cardholder, as the PIN is encrypted and is not accessible by anyone.

The Tap on Phone functionality aligns with Mastercard’s commitment to delivering quicker and more accessible payments, without ever sacrificing security for convenience, and supports the technology company’s commitment to connect 50 million micro and small businesses to the digital economy by 2025.

“Small businesses are crucial for systemic economic recovery, and by connecting more SMEs to digital commerce tools and affordable payment acceptance solutions, we are putting in place a strong foundation that can facilitate sustainable growth,” says Ebehijie Momoh, Country Manager & Area Business Head, West Africa at Mastercard. 

“Through our partnership with Prophius, we can further support financial inclusion and help these businesses deliver new and best-in-class contactless consumer experiences using a device they already own: a smartphone.”

Prophius is working with several bank partners across sub-Saharan Africa, with the solution expected to be available to small businesses from October in selected markets.

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Recognized as an emerging leader in Africa’s fintech sector, NowNow is among the eight startups and the only African startup selected to participate in the latest Start Path class. The program provides opportunities to co-innovate, gain expert knowledge, and reach a global customer base for the brightest startups in the world.

Mastercard Start Path is an award-winning startup engagement program within the Mastercard Developers portfolio which aims to support startups on their scaling journey across financial services industries globally. 

The Mastercard Developers portfolio provides the services and tools fintech innovators need to iterate at each stage of their journey, transform bold ideas and achieve scale at pace to bring more people into the digital economy. 

Through Start Path, Mastercard will provide NowNow with operational support, commercial engagement, and the opportunity for strategic investment. NowNow aims to deliver best in class financial services in Nigeria and Africa would benefit from the opportunity to collaborate with other innovative startups across the globe.

Sahir Berry, Chief Executive Officer of NowNow Digital Systems, said, “It is a pleasure to be recognized as an emerging leader in the fintech sector, and our participation in the Mastercard Start Path engagement program reinforces our commitment to enabling innovative financial solutions. This opportunity means that NowNow can scale its solutions while learning from the leading global payment technology company. Combining this expert guidance with our innovative solutions, we are confident in the future.”

“At Mastercard, we are proud to collaborate with businesses that are committed to the development of the local digital payments landscape which directly results in the growth of the economy. The Start Path program was designed to enable high-potential fintech startups to take advantage of Mastercard’s resources to co-innovate and quickly scale up operations. As the digital economy increasingly becomes the economy, enabling NowNow to achieve its vision only brings us closer to our financial inclusion commitment to connecting a total of 1 billion individuals and 50 million micro and small merchants (MSMs) to the digital economy by 2025.” says Ebehijie Momoh, Country Manager & Area Business Head, West Africa at Mastercard.

Mastercard creates bespoke training programs for each Start Path participant and provides access to its product teams, customers, and channels to help each startup unlock the potential of Mastercard’s network. Since founding Start Path in 2014, Mastercard has provided mentorship and support to nearly 300 startups globally. 

The latest cohort of the Start Path program will tackle challenges and take advantage of opportunities across Mastercard’s ecosystem of digital transformation, biometrics, cybersecurity, small business, open banking and more.

NowNow Digital Systems Limited provides reliable, best-in-class financial services technology to small and medium-sized businesses, agents, and consumers to drive financial empowerment for its customers.