What made Thursday’s Pitchathon at The Gathering On 100 striking was how concretely several of its participants demonstrated what that phrase can actually mean when applied with rigour.

The competition, held at the National Stadium Surulere in Lagos on Thursday, 23 April 2026, brought together nine early-stage and growth-stage ventures whose solutions shared a common thread: they were built not around the assumption of reliable internet, well-banked consumers or digitally confident small business owners, but around the actual conditions on the ground in Nigerian and broader African cities.

Perhaps the most dramatic illustration of this came from Gideon Okubanjo’s Temi AI, an offline AI assistant running on Airtel Nigeria’s infrastructure that generates information, performs agentic tasks and processes financial transactions via a basic handset, at ₦18 per minute for voice and ₦6 for SMS.

The product earned ₦9 million across a three-month beta with roughly 400 daily users.

Three of Thursday’s nine companies  independently arrived at the same architectural decision: WhatsApp as the primary user interface.

URI Social’s Jane, Invitee’s AI chatbot and Quad Limited’s shopping assistant all function through the messaging application rather than a bespoke dashboard, a convergence that reflects a wider shift in how Nigerian founders are thinking about distribution.

URI Social’s Precious Zino made the case most explicitly.

“There are so many businesses that would just never use ChatGPT,” she told judges who had questioned whether global AI tools might render her product redundant. “And ChatGPT doesn’t necessarily allow you to create content and post on social media at the same time.”

The argument is not simply that WhatsApp is convenient: it is that for the vendor selling clothes in Alaba or the hair salon owner in Ikeja, WhatsApp is already the operating system of their commercial life.

Building on top of it rather than asking them to migrate to something new is, in this reading, not a limitation but a strategic advantage.

Ravasend’s Emmanuel Isika offered a sophisticated version of the same argument in the payments space. Where most cross-border solutions route transactions through systems that are alien to the recipient, demanding a bank visit days after funds are sent.

Ravasend uses mobile money infrastructure, principally MTN MoMo, to ensure that a grandmother Nkechi, can receive money at a Momo agent immediately.

The company charges a flat 0.5% across all transactions, compared to the 7 to 15% that Isika said characterises incumbent corridors.

Judges pointed out the systemic risk in this model. One observed that MTN MoMo had the power to sever access to its rails at any moment, pointing to precedents in Ghana where operators without proper licensing had been cut off.

Isika’s response, which was that the company holds licensed partnerships, maintains bank-transfer fallback routes and is not entirely MoMo-dependent was accepted as credible but not, perhaps, fully reassuring.

The underlying tension the exchange exposed is one that many African fintech companies face: the infrastructure advantage of local partnerships can quickly become an infrastructure liability.

The afternoon served as a reminder that the ecosystem producing these companies is maturing.

The founders who took the stage on Thursday were, for the most part, not chasing fashionable technology themes: they were solving problems they had personally experienced, in markets they knew intimately, using channels their customers already trusted.

Whether that instinct translates into sustained commercial scale will be the question that the next phase of The Gathering 100 begins to answer.

You don’t open a bank app, you don’t think about the transfer, you just pay, and move on. This simplicity is no accident but a part of a global transition where financial services are no longer exclusive to banks but are now built into everyday platforms.

By 2030, embedded finance is projected to generate more than $7 trillion globally, a value greater than the entire traditional banking sector today. That scale shows it is not a passing trend, but a structural transformation in how money moves.

What Exactly is Embedded Finance?

At its core, embedded finance means integrating financial services such as payments, lending, insurance, or even investment, into non-financial products. Think of it as financial “plug-ins” that sit inside platforms we already use.

It explains why you can:

• pay seamlessly on Uber without opening a separate app,
• access a small loan at checkout on Jumia,
• or insure your device as part of an online purchase.

Unlike traditional finance, where transactions are separate, embedded finance blends money and service into one smooth experience.

Why Now?

Several forces are making this model more urgent:

• The cashless policy: In Nigeria, government policy and banking reforms are pushing more people into digital payments.
• The rise of APIs: Platforms like Flutterwave, Paystack, and Mono have made it simple for non-fintech businesses to plug in financial features.
• Changing customer behaviour: Today’s consumers expect transactions to be quick, seamless, and invisible.

In short, finance is no longer a back-end activity. It has become the glue holding digital ecosystems together.

Global and Local Case Studies

Across the world, companies that didn’t start as financial institutions are quietly becoming one:

• Uber made cashless rides a global standard by embedding payments.
• Shopify lends directly to its merchants through Shopify Capital, turning e-commerce into finance.
• Amazon used one-click payments and Buy-Now-Pay-Later to strengthen customer loyalty.

In Africa, the trend is even more visible:

• OPay evolved from a wallet into a financial lifeline for millions of small businesses.
• JumiaPay provides credit and seamless payments right inside the marketplace.
• MTN MoMo started with airtime top-ups and now powers transfers, savings, and merchant payments across multiple countries.

None of these began as banks, but today they are central to financial lives.

Opportunities and Risks

For startups, embedded finance is not simply a feature, but a growth strategy. It provides new revenue streams, strengthens customer loyalty, and helps reach people who remain underserved by banks.

But the transition comes with challenges:

• Heavy reliance on technology and connectivity,
• Regulatory grey zones where the rules are still being written,
• Growing cybersecurity risks as more apps handle financial data,
• The constant need to earn and maintain user trust.

Handled well, these risks are manageable. Ignored, they can sabotage both startups and customers.

The future points towards financial services that disappear into the background. Traditional banks may become infrastructure providers, while everyday platforms handle customer interactions. 

E-commerce sites could compete both on price and on who offers the best credit at checkout. Insurance might be offered instantly during purchases. Gig workers may no longer wait days for their earnings.

Finance, in other words, will be everywhere, but rarely noticed.

The ability to pay a bike rider with a tap, borrow working capital directly from a digital marketplace, or access health insurance bundled into a subscription service are all made possible through embedded finance.

At a time when inflation is squeezing incomes and traditional banking feels distant for many, these services provide both opportunity and relief. But they also require safeguards, because when money becomes invisible, people need to know it is still secure.

Embedded finance is not about replacing banks, but about reimagining how financial access fits into daily life. For startups, it has become the secret weapon for growth and customer retention. For consumers, it promises convenience and inclusion, though it carries its own risks.

The question is not whether embedded finance will grow, that is already happening, but how it will bolster the future of money for both businesses and individuals.

Nigeria’s PiggyVest, PalmPay and Kuda Bank, alongside South Africa’s MTN MoMo, were among top innovators on the list.

According to the report, global funding has dipped from its 2020-2021 peak, but innovation continues. Artificial intelligence is a key theme, with companies leveraging technology to shape the future of financial services across a wider, more competitive industry.

The report reiterates resilience and innovation within the sector, emphasising the diversity of success in fintech.

Nigerian Innovators

• PiggyVest: Listed in the financial planning category, PiggyVest stands alongside companies like Monarch, MoneySuperMarket, NerdWallet, and Taxfix from the US, UK, and Germany. PiggyVest offers personal finance management tools that enable users to manage budgets, savings, and credit scores effectively.
• Kuda Bank: Featured in the neobanking category, Kuda Bank offers digital-only financial services through mobile and desktop applications, providing a convenient and potentially lower-cost alternative to traditional banks. It shares the spotlight with EQ Bank, Inter&Co, Mercury, Monzo, and others from Canada, the US, UK, and Brazil.
• PalmPay: Recognised in the payments category, PalmPay provides solutions for online purchases, point-of-sale transactions, and digital money transfers.

South African Innovator

• MTN MoMo: Also in the payments category, MTN’s mobile money service, MTN MoMo is facilitating smoother online and in-store transactions and making financial services more accessible. It is listed alongside Mangopay, Mastercard (US), Melio, and Nuvei from Canada, India, and other countries.

The CNBC-Statista list is based on a thorough selection process, evaluating more than 2,000 companies between March and May 2024. Analysts considered both general and segment-specific KPIs (key performance indicators). 

General KPIs accounted for 40% of the weighting, while segment-specific KPIs held a 60% weight, ensuring a comprehensive evaluation.

The report, an updated extension of ANKA’s 2018 edition, offers a holistic global analysis of the state of African e-commerce; covering the entire entrepreneurial journey from product creation to international delivery.

The report delves into millions of data points from interactions with global consumers to encourage conversations around the stellar growth of African entrepreneurship.

The company has also announced the launch of the “ANKA Growth Club” – a  transformative program designed to support small and medium-sized businesses looking to export products to the USA in partnership with Prosper Africa.

Global African Commerce is a quantitative resource for the African e-commerce landscape, shedding light on the unique barriers and opportunities faced by entrepreneurs on the continent. One of the most striking research findings is the significant impact on job creation.

Entrepreneurs using the platform have experienced substantial growth in their businesses, expanding their teams by a staggering 50% – fostering job opportunities and demonstrating the platform’s capacity to drive job growth.

With a continental median age of 18.8 years, ANKA’s white paper highlights how the platform is opening up new opportunities in the job market for youth employment.

With over 72% of ANKA’s sellers identifying as women, it is quickly becoming the de facto platform for women entrepreneurs and a source of insight into their experiences in leading small and medium-sized businesses.

Touching on the impact African commerce is having on global exports, the white paper highlights that 50% of entrepreneurs ship their products through the platform (via ANKA’s landmark partnership with DHL), arguably making ANKA the largest African exporter of goods.

Other key highlights from the white paper include: 

• The revelation that by utilising machine learning techniques, merchants were able to increase visits to their site but offering discounts did not correlate to an increase in sales – surprisingly the only behaviour that doubles the chance of selling a product is to regularly update it! 
• The possibilities of ‘stockless’ selling through developing a deep and nuanced understanding of customers, making continuous product improvements, and adapting to market demands.
• A dive into the collaborative opportunities available for businesses to improve payment methods and shipping offers, essential to enhancing efficiency and resilience against fraud.

While the white paper highlights the growth of the African e-commerce sector, it does not shy away from highlighting the obstacles faced by entrepreneurs, identifying that 59.7% of women entrepreneurs and SME owners across the continent cite limited access to finance as the primary barrier to hindering their growth ambitions.

This crucial data underscores the urgent need for targeted support and solutions to address the disparity.

Therefore in alignment with its commitment to SME empowerment, The “ANKA Growth Club” was created to support entrepreneurs, especially women, who are often overtrained and underfunded. 

It will offer an array of actions and opportunities, including physical (through US pop-ups) and digital exposure,  financing solutions through loans of up to USD 75,000, mentorship from industry experts, and a robust community of same-level entrepreneurs dedicated to achieving exceptional growth.

Speaking on the launch of the white paper and the ANKA Growth Club, Moulaye Tabouré, ANKA’s CEO and Co-Founder said;

‘I am very excited to share this as a starting point for more efficient collaborations and actions. Our commitment to empowering African businesses goes beyond rhetoric; it’s at the core of our company’s mission. That is why this white paper is not just a report, it’s a game-changer, providing a unique and unparalleled perspective; helping us redefine the e-commerce landscape, empower women and unlock the full potential of African creativity and entrepreneurship”.

He continues, “The ANKA Growth Club represents a significant step forward in our mission to facilitate access of SMEs to global markets. The US market represents a huge opportunity for African entrepreneurs to reach new customers and continue growing their business. Through the ‘ANKA Growth Club,’ we’re not just providing support; we’re fostering opportunities, knowledge, and connections that will drive economic growth and innovation. Together, we’ll open doors and pave the way for a new era of African business on the global stage”.

Offering a wealth of insights for entrepreneurs through its actionable strategies and best practices, the report reflects the last three years of meticulous research and collaboration with the likes of VISA, MTN MoMo and M-PESA to help entrepreneurs boost sales, engage with their audience and thrive in the competitive e-commerce landscape. It invites stakeholders to collaborate in identifying and addressing challenges while appreciating positive aspects and seeking continuous improvement opportunities.

Findings in the white paper were obtained using 9500+ answers collected and analysed from the questionnaires sent to customers, sellers, and affiliates (including thousands of non-ANKA customers).

“In the dynamic African fashion landscape, data-driven insights and knowledge development are essential for successfully manoeuvring the complex fashion value chain. Fashionomics Africa places a high emphasis on market intelligence and data to elevate understanding of this industry and its many dimensions. We’re delighted to partner with Anka for this report,” said Basil Jones, Lead Gender Program and Policy Coordinator at the African Development Bank Group.

“The research and findings presented in this collaboration will play a pivotal role in enhancing the positioning of the African fashion ecosystem and providing deeper insights into e-commerce opportunities,” he added.

Stephen Murray, Managing Director, CrossBoundary Group shared, “The United States is the largest apparel market in the world, but also the most competitive.  With so many brands vying for a share of the $350 billion market, it takes more than just excellence in design to be successful.  With the Anka Growth Club, Africa’s top fashion brands can learn how to better navigate the complexities of the market, forge the right partnerships and access resources specifically to support African exports to the United States.”

ANKA’s success to date with African entrepreneurs is evident in the findings. The platform currently boasts 20,000 sellers in 100 countries (45 out of the 54 on the continent), over 30,000 users and a million followers culminating in  $50 million transactions in 175 countries in four short years since being founded.

ANKA continues to champion the immense possibilities for business owners to thrive and recognizes the need for knowledge in accessing the appropriate resources, strategic partnerships and innovative approaches required for success.

This move comes after MasterCard invested $100 million two years ago in Airtel mobile commerce BV, Airtel Mobile Money. With this investment, MasterCard acquired a minority stake in the mobile money arm of the company.

MTN Mobile Money (MoMo) offers digital services and financial solutions to over 46 million customers across 21 countries in Africa and the Middle East.

During the first half of the year, MoMo’s transaction volume increased by 37%, leading to its valuation of $8.3 billion. This growth was driven by a shortage of funds in the first quarter (Q1) of the year.

MasterCard’s investment in MoMo aims to enhance its capabilities and expand its reach. This would enable MasterCard to integrate its virtual payment services with the MTN wallet, allowing customers to make payments without needing a bank account.

According to Ralph Mupita, MTN Group President and CEO, the agreement would be drafted as a business collaboration on payments and remittances using Mastercard’s technical infrastructure to develop throughout Africa and an investment in a minority share. Bloomberg had noted that the number of shares would be disclosed after the deal was complete.

Mupita added that the firm had a strong result in H1 23 and achieved good strategic progress, even in a challenging macroeconomic environment. He noted that the Group was very encouraged by the increased network availability in South Africa as a result of its investment in power resilience, which led to a better Q2 23 performance than Q1 23.

With this significant investment by MasterCard, the African e-commerce market would open up to people worldwide, positioning Africa as a bright spot in the global economic landscape.

It’s been weeks since I have touched Naira notes and my experience is not different from a typical Nigerian. Every Nigerian has been experiencing a cash crunch in the past few weeks.

A backstory, Last October, the apex bank announced its decision to redesign the notes, adding that members of the public were hoarding banknotes, with statistics showing that over 85 per cent of the currency in circulation is outside the vaults of commercial banks.

Available data at the bank showed that in 2015, currency-in-circulation was only N1.4 trillion. As of October 2022, currency in circulation had risen to N3.23 trillion; out of which only N500 billion was within the banking Industry and N2.7 trillion was held permanently in people’s homes.

Based on data on the 2022 Nigeria Fintech Map by Segun Adeyemi, we have over 70 Fintech startups playing in Mobile money/Informal banking, payment processing switching infrastructure and digital banks verticals.

Despite the increasing payment channels available to Nigerian consumers, the digital payments industry remains significantly under-tapped. Payment for goods & services is mainly done with cash.

According to the Enterprise Development Centre (EDC) of Pan African University, cash payments accounted for 95.3% of transaction volumes at the end of 2018.

Non-cash transactions are expected to reach 17.8% of total transaction volume in 2023 from 4.7% at the end of 2018.

I guess the EDC forecast couldn’t predict the apex bank Naira redesign that will lead to forcing digital transactions down the throats of Nigerians.

This disruption has created opportunities for mobile money firms and the innovation ecosystem in Nigeria.

Before we get into the massive opportunity for mobile money firms. The failure rate of bank applications is alarming since the massive drive for cashless. The question is are Nigeria banks/Fintech not prepared for this and why is the failure rate so high?

Let’s explore some of them:

Poor internet connectivity: One of the primary reasons why bank apps may fail is due to poor internet connectivity. Nigeria has relatively slow internet speeds, which can cause apps to crash or take a long time to load. If a user’s internet connection is unstable or slow, it can lead to a poor user experience and cause the app to fail.

As of 2022, the estimated internet penetration rate in Nigeria is about 55.4%, according to Datareportal. This means that about half of Nigeria’s population has access to the internet. While internet penetration has been steadily increasing in recent years, there are still significant barriers to the widespread adoption of the internet in Nigeria.

Inadequate infrastructure: Nigeria’s banking sector is still developing, and the country’s digital infrastructure may not be sufficient to support the growth of mobile banking. For example, there may not be enough server capacity to handle the volume of transactions that occur on bank apps, leading to slow response times and app crashes.

Incompatible devices: Bank apps may not be compatible with certain devices or operating systems, leading to technical issues and app crashes. This can be a problem in Nigeria, where many people use older devices or low-end smartphones that may not have the processing power or memory required to run complex apps.

Security concerns: Security is a major concern for banks and their customers, and if there are vulnerabilities in the app’s security protocols, it can lead to app failures. Banks may implement security measures, such as two-factor authentication or biometric verification, which can sometimes cause app failures if not implemented correctly.

User error: Sometimes, app failures can be caused by user error. For example, if a user enters the wrong login credentials repeatedly, the app may lock them out, leading to an app failure. Similarly, if a user does not update the app regularly, it can cause the app to fail due to compatibility issues.

To mitigate these issues, banks can take steps such as improving their infrastructure, conducting regular security audits, optimizing their apps for lower-end devices, and providing customer education to prevent user errors.

However, the ball does not stop at the bank’s door, because if you look at the tech stack of electronic fund transfer in Nigeria it is built on

1. Nigeria Inter-Bank Settlement System (NIBSS) Instant Payment (NIP):

NIBSS Instant Payment (NIP) is an electronic payment system that facilitates instant interbank transfers between accounts in Nigeria.

The technology stack behind NIP includes:

• Application Programming Interface (API): NIP provides an API that allows banks and other financial institutions to integrate with the system and initiate transfers on behalf of their customers.
• Web Services: NIP provides web services that allow customers to initiate transfers through their bank’s online banking portal or mobile app.
• Database: NIP stores transaction data in a secure database that is accessible only to authorized parties.
• Encryption: NIP uses encryption to ensure that sensitive data, such as account numbers and transaction details, are secure and protected from unauthorized access.

2. Unified Payments Interface (UPI):

Unified Payments Interface (UPI) is a real-time payment system that allows users to transfer money between bank accounts using their mobile phones. UPI was developed by the National Payments Corporation of India (NPCI) and has been adopted in Nigeria as a way to facilitate instant payments.

The technology stack behind UPI includes:

• Mobile Application: UPI is accessed through a mobile application that is installed on the user’s phone.
• Application Programming Interface (API): UPI provides an API that allows banks and other financial institutions to integrate with the system and initiate transfers on behalf of their customers.
• Immediate Payment Service (IMPS): UPI leverages the use of the Immediate Payment Service (IMPS) to ensure that transactions are processed in real-time.
• Encryption: UPI uses encryption to ensure that sensitive data, such as account numbers and transaction details, are secure and protected from unauthorized access.

3. Payment Service Providers (PSPs):

Payment Service Providers (PSPs) are third-party entities that provide electronic payment processing services to merchants and customers. In Nigeria, PSPs are licensed by the Central Bank of Nigeria (CBN) to provide payment services to banks and other financial institutions.

The technology stack behind PSPs includes:

• Payment Gateway: PSPs provide a payment gateway that allows merchants to accept online payments from customers.
• Fraud Detection: PSPs use advanced fraud detection techniques, such as machine learning algorithms, to detect and prevent fraudulent transactions.
• Payment Processing: PSPs process payments between banks and merchants, ensuring that transactions are secure and reliable.
• API: PSPs provide an API that allows merchants to integrate with the system and initiate transactions on behalf of their customers.

Now, let’s go back to poor internet connectivity: as stated earlier As of 2022, the estimated internet penetration rate in Nigeria is about 55.4%, according to Datareportal.

For perspective, these user figures reveal that 98.63 million people in Nigeria did not use the internet at the start of 2023, suggesting that 44.6 per cent of the population remained offline at the beginning of the year.

So it is apparent that data connectivity is crucial to driving financial inclusion however it is interesting to note that a total of 193.9 million cellular mobile connections were active in Nigeria in early 2023, with this figure equivalent to 87.7 per cent of the total population. Let’s keep in mind that most Nigerians have two sim cards/phones.

Essentially, we need to build solutions that will solve transactions involving low-value amounts of cash instantly. When you think about taking a 100 naira bus or buying 50 naira orange from an Aboki stand or tipping your gateman.

Before the cash crunch, both the payer and payee typically incur zero transaction costs and experience zero settlement time. We need to replicate that fast.

Interestingly, NIBSS has a collection service called mCash. On the website m Cash is described as an innovative payment solution designed to facilitate retail payments to Merchants.

It is accessible to payers via mobile USSD technology which in recent times has become the most accessible channel (even without the internet) for financial and non-financial transactions. mCASH leverages the NIBSS Instant Payments (NIP) infrastructure for immediate fund delivery to Merchants’ accounts.

I believe the opportunity is massive for Fintech which can build amazing solutions on this technology.

This is also a great opportunity for MTN Momo to drive massive adoption.

One of my favourite startups Moniepoint is aggressively driving adoption. With over 100 billion USD processed in 2022, maybe they will be 3x the revenue in 2023.

The innovation ecosystem can also drive a fintech hackathon focused on creating innovative financial products that can work with existing infrastructure in Nigeria, developing solutions that work with existing mobile money platforms, or creating new digital financial products that can be accessed through USSD codes or SMS.

We can also think about developing new technologies to improve internet connectivity.

This could be an effective way to promote financial inclusion and improve access to financial services for people with limited internet connectivity.

*This article by Kolapo Ogungbile was first published here.

The POS business has been in vogue in the last few years, amongst other benefits include providing employment opportunities and solving a major problem of financial exclusion which is one of the goals the Central Bank of Nigeria, intends to achieve. 

POS agent model requires customers who have bank accounts to visit operators with ATM cards to withdraw. So, this process requires a machine or terminal that relies on the Internet, while establishing a connection with a deposit bank to make a transaction successful. 

What this means is that without having a bank account money cannot be transferred to you. You must own a bank account. However, the MoMo PSB offers something spectacularly unique. No POS machines, no smartphone, no account number. 

What is required is to open a MoMo wallet, by simply dialing *671# on any network, then once can send money to any mobile phone or even receive. MoMo platform is designed to run on any network, it makes it faster to process transactions

“This POS agent model now needs to die. It has outlived its usefulness in Nigeria. Maybe PSB is what will finally kill it if they take merchant payments very seriously,” Victor Asemota, African Tech Investor tweeted on Monday. 

He said taking cash from an agent with a POS to do cash transactions with a merchant who has no POS is now stupid.

“Yea, African economies are still predominantly cash-based but things can transform rapidly. I have not touched cash in months in Accra. Everyone can accept MoMo. Merchant transactions now also don’t attract the new e-Levy and customers now ask for merchant numbers,” Asemota said. 

Fraud Cases vs Failed Transaction 

POS business has recorded a series of failed transactions that possibly gets a customer debited or merchants credited without reflection. In order words, banks debit money from either the customer’s or agent’s accounts even on failed transactions. 

Asemota said the goal of every electronic payment is to make everything seamless. “Merchant said payments via Momo will also end this chargeback fraud problem. Card associations and banks won’t like it but it is inevitable.”

Surprisingly and in contrast to the position of Asemota, Mobile Money Payment Service Bank Limited (MOMO PSB) has in less than a month operations suffered a massive fraud worth over “N22 billion on its network”.

TechEconomy on Monday gathered from a suit instituted by the Mobile Money Bank against 18 Banks that an aggregate sum of N22,300,000,000, equivalent to about $53.7m was erroneously transferred to accounts maintained by customers of 18 different banks in the country.

In the originating summons dated May 30, 2022, and filled before a Federal High Court, MTN’s MoMo payment Bank is seeking a court declaration that the deposits of the said sum of N22.3 billion were erroneously transferred by the company to the accounts of customers of the 18 banks having been done in error belong to MTN’s MOMO PSB and not to the customers of the banks.

Financial Inclusion

The nation’s current financial inclusion rate is slightly below 70 percent, however, the CBN is optimistic that the banks would soon achieve the 85% financial inclusion rate target in Nigeria

When MoMo got licensed, the apex bank said the key objective of issuing PSB licenses was to boost financial inclusion, especially in rural areas, and facilitate transactions.

“To enhance financial inclusion in rural areas by increasing access to deposit products and payment/remittance services to small businesses, low-income households, and other entities through high-volume low-value transactions in a secured technology-driven environment,” the CBN had stated.

How to Receive Money via Momo PSB

Let’s assume that you have created a Momo wallet and someone sends you money. What you need to do is to locate a MoMo agent close to you by dialing *223#. 

When the sender informs you that he has sent the money to you, he will also send a 5 digits codes to track the funds.

Take the five-digit control number sent by the sender plus the other five-digit that was sent to you to the MoMo agent in other to collect the money.

After confirmation of the codes, the MoMo agent will pay you the amount sent to you after deducting the charges 

Of course, there has been an uptick in digital transactions as businesses adjust to changing consumer behaviour. This has been enhanced by the emergence of super apps over the course of 2021.

A super-app is a mobile app that provides multiple services including payment and financial transaction processing, effectively becoming an all-encompassing self-contained e-commerce platform.

The challenge, however, is that South Africa is still quite a cash-reliant society, and these apps leave out the unbanked and underbanked.

Considering this, we believe cash payments via retailers will remain a strong trend in 2022 and years to come which means that bill issuers and merchants will need to continue providing a broad range of payment channels, both digital and physical.

In terms of tapping into the underbanked market, 2022 will see wallets from telcos such as VodaPay, MTN MOMO and Telkom Pay Digital Wallet going head-to-head with those offered by retailers like Shoprite Money, with a strong focus on digitising cash.

These organisations are attempting to provide wallets that act like reduced capability bank accounts, but which one consumers will trust and use remains to be seen. Next year will either make or break some of these wallets.

Looking at some of the other technologies that are gaining momentum, we have seen payments via QR codes becoming increasingly popular in the past year, with the banks now finally incorporating QR code scanners within their apps that are able to scan QR codes from Zapper, SnapScan or Masterpass wherever they are presented.

We believe that the uptake will continue next year with further innovation from Visa and MasterCard looking to address card-not-present costs for QR code transactions and, consequently, wider use of QR codes.

It has been a lengthy journey for QR codes to finally break into the South African payments landscape, but we are now witnessing exponential growth in their use.

Another technology that has been accelerating and become the norm is contactless payments. People are becoming comfortable with tapping their cards, phones and smartwatches.

Going forward, banks and other players in the industry will be coming out with apps for merchants which will enable them to turn their phones or tablets into point-of-sale (POS) tools, negating the need for pin-pad devices. Already we are seeing this type of tech with the likes of Nedbank’s PocketPOS and this is set to explode in 2022.

We foresee this replacing POS machines used by smaller to medium businesses, much like the map apps on cell phones took the place of GPS navigation devices.

Banks have also been developing open payment Application Programming Interfaces (APIs). These are software intermediaries that allow two applications to talk to each other. The bank-developed open payment APIs allow users to pay directly out of their bank accounts while on a website without needing to go into their account and set up a predefined beneficiary or use their card.

2021 was the first year that banks put these APIs to test in the market and the use of this payment method will accelerate in the new year. While it will be used predominantly for e-commerce transactions, it will also start filtering into retail environments.

Linked to this is the development of a new and faster payment method called Rapid Payments by the Payments Association of South Africa (PASA), BankservAfrica and the banks which will be piloted in 2022, with market adoption expected in 2023. This will allow for money to be moved instantly from one’s account to another’s account or to that of a retailer.

The vision for Rapid Payments is for users to be able to transfer money just by using the recipient’s cell phone number and for the money to be deposited into their account within as little as 10 seconds.

Rapid Payments is expected to be a cost-effective payment method that banks will leverage as a tool to assist in digitising cash.

In the new year, we are hoping to see even more innovation arising from the establishment of a new Payments Industry Body (PIB) comprised of banks, payment solutions providers like Pay@, fintechs and other payment space participants.

Leask concludes by saying, “With these and other technologies coming to the fore, bill issuers and merchants are going to see money moving quicker and more cheaply. At the same time, it’s going to be safer and more convenient for the end consumer.”