This distributor has probably done business with you for five, ten years or more, knows your business, your purchase, sales and payment patterns, and can in fact, offer financial services better suited to your business.

This is because they know more about you than perhaps the big-name bank you use down the road. For example, when you need to expand your business from one to two shops, your bank is unable to give you the loan to help you do that because, frankly, it can’t tell whether or not you are into what you claim is your business.

Your bank statement does not contain enough information about your business to help them decide and they don’t know what you sell daily, weekly, etc. Or the margins you get on each supply you receive and sell.

But, your distributor provides you goods, maybe weekly or even daily, knows the volumes you move and how promptly or not you make payments. Also knows the margins in each product. Just like you, they know the business.

If the distributor could finance you to grow your business, you will buy more from him. And sell more. And she in turn will pull more volume from Nestle, P&G, etc. Win-win-win for everyone.

The spoiler? That distributor is not a bank and can hardly do more than give you goods on credit, occasionally. She definitely doesn’t have the liquidity to cater to all of your growth needs.

That’s where embedded finance comes in.

A Forbes article describes embedded finance as “the use of financial tools or services — such as lending or payment processing — by a non-financial provider,” and expanding this, the end goal is to offer customers a payment experience that is likely to keep them loyal and continue doing business through that platform.

Here are four ways the FMCG industry can utilise embedded finance, to offer financial services throughout their supply chain, without having to grow through the overhead of becoming banks themselves.

Credit line to keep goods moving

The supply chain as at today is mostly analogue and it is hard to accurately know in micro details, what role every participant has played. To be clear, a manufacturer or distributor would have records of how much inventory it sold or not, but does it know what moved across different categories of distributors and down to retailers? Not likely. And definitely, not accurately.

Digitizing the workflow creates an integrated ecosystem in which every player becomes visible in the supply chain. This is especially important for players closer to the bottom of the chain, many of whom the FMCG manufacturers would have no direct records of, yet are active participants in getting goods down the last mile and to consumers.

Many of these could rely on physical bookkeeping to track their finances, but when they need a credit line for goods from the same company, showing a track record becomes challenging. Even worse when they buy their inventory through layers and layers of middlemen and sales agents.

A finbox article emphasised that “The digital integration of smaller distributors and local stores through payment solutions, accounting apps, and banking solutions will generate standardized data on transactions within the chain, leading to increased transparency at every stage – tracking goods, inventory management, and sales.”

In essence, offering digital tools that help a retailer to spend, receive and track their money – embedded finance, could allow a 3rd party (or even a bank) have the visibility and confidence to step in to offer credit lines that support the retailer with goods or services (as the case may be), based on their transaction history, which would have been recorded on the platform.

In practical sense: If a shop owner usually buys N20,000 worth of inventory every week, consistently, and a bank or lender has visibility into this, they are able to step in to help increase the basket size to N30,000.

Needless to say, the more goods the retailer is able to sell, the more the FMCG distributor or manufacturer itself stands to make. With embedded finance – inserting the services of the bank or lender into the (now digital) exchanges between retailer and distributor, we are now able to determine based on transactions; who is qualified for what level of credit line.

It becomes possible to have data driven decision making that keeps retailers in business and possibly expand, and invariably, the company at the top of this chain keeps winning.

Insurance on sales

Insurance is often overlooked in this part of the world and when offered to people, it is not unusual to hear; ‘loss is not my portion’. Yet, losses occur, and perhaps more frequently than many would like to admit.

However, there are instances where insurance is not optional, especially for transnational movement of goods.

As part of the supply chain experience, insurance protection can be embedded within the solution offered by the FMCG manufacturer or distributor.

As usual, an insurance provider needs historical data to determine risk and price it appropriately. The digitization effort creates this trail and makes this possible.

In practical terms: It’s not uncommon for drivers of delivery vans to drive off with goods and cash. Or get waylaid by urchins. Embedded insurance protects against this possibility. But requires digitization to be effective.

There are even more interesting insurance products that can be designed: Imagine a retailer getting money back for inventory they were unable to sell due to external factors? Yes, possible.

A financial bouquet to do more

The account number that ties any dealer in the supply chain to the embedded finance solution, can also be used for any regular banking service. So, when the delivery of Indomie Noodles comes from Dufil and the distributor needs to pay the haulage company, they are able to do so through the embedded finance solution provided by Dufil.

They would not need to log into a separate bank account, then make a transfer, or worse still, hand over a wad of cash.

Payment for warehouses, store rent, utilities and even salaries of employees can be done from that account provided by the FMCG company.

A distributor can make all business related expenses from that single account, making it easy to accurately determine what costs are associated with that business, and how profitable or not it has been.

The good part of this? Because the account is provided by the FMCG company or Distributor, they usually have negotiated “corporate pricing” with the bank or financial service providers… and because they are not in this to make money from banking services, per se, they are able to pass those gains down to the retailer in the form of cheaper services, etc. Imagine sending money for less or buying airtime at a discount because the margins of the bank have been passed to the retailer in the form of incentives.

Integrated payment experiences to eliminate cash

Every distributor and manufacturer knows that cash handling is a big problem and cost. Retailer receives cash from his own customers.

Retailer pays the wholesaler or distributor in cash. Everyone has to count, reconcile and move that cash around. Someone pays for the insurance on that cash, someone pays the cashless penalty on that cash, Etc.

With an embedded bank account, the distributor can in one-click take payments from the account of the retailer when the time comes to pay.

With an embedded account, customers can pay directly into the account of the retailer versus cash. And these days, they can do that with either cards or transfers.

And the incentive for the Retailer to push this? Every inflow and outflow from that account helps him to create the required data trail through which he can get the credit line with which he can start his 2nd shop or buy more inventory. An unending hamster wheel of growth..

In conclusion

Embedded finance solutions are ready for deployment within days and do not require building from scratch. OnePipe makes it possible for non-financial institutions like FMCG manufacturers and distributors, to offer financial services without becoming fully fledged providers.

From facilitating credit to offering investment possibilities, each possibility is in itself a full time job, with requirements varying from tech to operations, regulation, dealing with things like fraud, compliance etc, yet, possible to offer as a single suite through embedded finance.

The experiences for customers keep them integral in the supply chain, and the implementing FMCG expands revenue without ‘investing heavily’ in the tech to achieve this. What is there not to love about embedded finance?

The post Four Ways FMCG Distributors Can Use Embedded Finance to Grow Trade Within Supply Chains appeared first on Tech | Business | Economy.

Earnipay is on a mission to relieve the 30-day payday cycle employees have to wait despite the financial obligations and pressure faced daily. 

The company is fast becoming the definitive on-demand salary access solution, taking on the single biggest source of distractions and declining productivity in the workplace – money worries and helping employers stay out of debt cycles from predatory payday loans and unlock financial freedom. 

Speaking on the collaboration, Nonso Onwuzulike, Founder and CEO of Earnipay said; “We are constantly improving the way that we serve our primary customers; employers and employees, and our adoption of the robust APIs available on the OnePipe gateway is in line with our commitment to offering financial freedom to businesses. For employers, this is freedom from the challenges that come with poor performance and staff turnover created by employees having to deal with financial struggles while for employees, it’s freedom from restrictive monthly payment cycles and an open door to flexible access to the money you’ve earned. Leveraging OnePipe’s resilient infrastructure ensures that disbursement/collections happen in a matter of seconds, improving our promise to our consumers” 

The partnership opens doors for Earnipay to double up on its achievements, with over 200,000 employees, before the end of 2022 and rapidly expand across the African region. 

Ope Adeoye, OnePipe’s CEO, said the partnership will be an enabler to enhance Onepipe’s goal actualization:

“OnePipe’s fundamental promise is to work with its partners to achieve customer intimacy and operational excellence through embedded finance. We keep to this promise daily by ensuring that the OnePipe gateway delivers world-class service on time, every time. Earnipay choosing OnePipe as they progress on this laudable journey is a further incentive for Onepipe to keep to its promise.”

The post Nigeria’s Earnipay, OnePipe Join Forces to Boost Financial Wellness for Employees appeared first on Tech | Business | Economy.

Although there is still a gap in this aspect, efforts are being made to bolster the interest and presence of women, not just in the fintech sector, but in all other sectors, and there is a commendable increase. 

One of such women gaining ground in the fintech sector is Yvonne Elaigwu who studied Human Anatomy at the University of Maiduguri with the goal of being a genetic engineer. Her first job being an operations role, she has found her way in ensuring adequate functionality for every business she found herself.

“My first job was an operation’s role and I quickly found that I enjoyed being a part of the team in the backend that provided the support and structure that ensures that all goes well. Every role I have occupied since then has been Operational in nature. I have been doing this now for over 12 years across the NGO space, Banking, CSR and now in the technology space. Somewhere in between these jobs, I got a master of Environmental Management degree from the University of Lagos.”

Yvonne Elaigwu is currently the Head of Operations at OnePipe, a foremost fintech API Company and a Trustee at Open Banking Nigeria.

Discussing the future of Nigeria’s payment system, the trends required to drive growth in the country’s fintech space and what it takes to drive the operations of a Startup in Nigeria’s unique economy, Elaigwu shed some light on the present and future possibilities of the fintech space.

On the position of the current payment systems available in the Nigerian business space today, Yvonne Elaigwu said:

“I’d say our payment systems are growing and evolving. Transaction volume and value are growing exponentially, NIP transactions alone in 2020 were over N235 trillion which is nearly 100 times more than the e-payments transaction less than about 8 years ago.  The Covid 19 pandemic literally forced the world to prioritize contactless interactions and the payment system was not excluded. This is probably one of the drivers of the rise and adoption of payment via transfer; PayWithTransfer.”

Ten years ago, the value of NIP transactions was 4,449,654 as reported by the Central Bank of Nigeria, this was less than 2% of the 378,100,749 pulled in by POS terminals and ATMs. 

Going down memory lane, Yvonne Elaigwu explained: “I remember a time when every salon and corner store was hustling to get a POS machine from their banks. It was the new in-thing and everyone needed a machine to receive payments. The store owner and customer both relied on the POS slip to confirm that a transaction was successful.”

It’s interesting that these store owners and merchants had bank accounts but did not think to accept payments directly into them. Today, the concept of pay-with-transfer is so accepted that the cab driver, who before now would only accept cash, — and probably never went through the POS stage — would, without much ado, share an account number to receive payment for his services. 

Data supports this shift and growth, the CBN report on e-payments showed that in 2020, “pay-with-transfer” NIP volume was about 200% more than the volume of payments made on both POS terminals and ATMs and significantly more in transaction value. 

Businesses are now more comfortable with receiving payments digitally, most businesses today are profiled to receive payments digitally and this is evidenced in the fact that the transaction value and volume of all e-payment platforms are consistently growing. 

Digital Currencies

The thoughts about digital currencies spreading or not, and being eventually implemented and accepted in the Nigerian economy have been on the minds of many. In this regard Yvonne Elaigwu emphasized: 

“I am no subject matter expert here, but it looks to me that they are here to stay. Like all new “products”, they would come with their teething problems, bugs and losses.

“Costly mistakes would be made and lessons would be learnt, the Luna scenario of the last couple of days taught me and hopefully the ecosystem that ‘it’s not really stable unless it is pegged against actual money sitting in a bank account’. It’s like purifying gold, at the end of the day, impurities would be removed and a gem would emerge. While it may take us some time as a country or an economy to get onboard with a new technology (e.g. like it did with mobile networks and cell phones), we eventually catch on and make up for lost time. 

“I personally believe that once digital currencies are established and become relatively more mainstream, they would be implemented and even encouraged in our country. This would probably take time, but it is very likely to happen.”

What are the trends that will shape the financial space in Nigeria in a few years to come?

Yvonne Elaigwu thinks that the concept of Embedded Finance will take root and grow/shape the Nigerian financial space in a short time from now. 

This would be evidenced in close partnerships between traditional banks, lenders and BaaS companies to enable merchants and “regular” entities like the distributors, cooperative societies, farmers’ associations etc to provide financial services to the last mile customer. This would also improve financial literacy and bank more customers. 

The thinking is that the farmer who has been “acquired” by his association of farmers, would know to ask that entity for a loan to grow his farm. This entity knows him and his operations intimately enough to offer him this facility. 

The same can happen with the distributor who acquires his retailers and offers them banking services. What would now begin to happen is that last mile customers are becoming more banked, where they are now incentivised to save their funds within the banking system in order to create transaction trails that make them eligible for credit facilities to grow their businesses and take care of pressing needs.

“I also think that we will begin to see simplified and more secure payment methods as people continue to embrace ‘pay-with-transfer’. Data already shows that people are gravitating toward this mode of payment and the failure rate of card transactions is not making it harder. In the future, the relevance of card payments would be minimized, thereby reducing the associated fraud incidences accompanied by card payments.”

Technology and its impact on the Nigerian financial sector 

With a mobile network coverage of 99% and data from the 2019 Jumia report showing that 87% of Nigerians are mobile network subscribers, it means that technology, when properly directed, can be the tool to reach the unbanked and educate the underbanked. 

The rise and proliferation of technology startups in the finance space is the first glaring way that we see technology impacting the finance sector in Nigeria. The prevalence of technology has made it possible for enterprising Nigerians to build solutions that can change people’s lives. 

These ventures have over the years attracted billions of dollars worth of capital into the country, provided employment to thousands of people and in 2021, technology startups contributed about 10% of Nigeria’s GDP.  

Again, technology-driven companies are building and shipping solutions targeted at the unbanked and underbanked in the country and making them available on progressive web apps, downloadable apps, USSD and POS machines. 

“The chances that an individual in the remote village of Obagaji, Agatu where I come from (where there is no physical bank) with a mobile phone (any kind of mobile phone) is able to access a financial service today is very high and attributed to technology, driven by technology companies.”

Technology has made it possible for the regular person to have access to resources on financial instruments, concepts and data with which they can make informed decisions to improve their life conditions-everything is a google search away.

Digital banking versus the traditional banking system, do you think there will be a convergence?

Eventually, yes. While digital banking is the “now” and the future, traditional banks are here to stay and will need to come to a place (probably are in that place already) where they decide between fighting digital banks, competing against them or partnering with them. 

We are beginning to see partnerships in the US, Europe and even here in Nigeria between traditional banks and digital banks to birth the concept of Embedded Finance, which is a relatively new concept. We expect to see more of these in the future.

As head of operations at OnePipe, what excites Yvonne Elaigwu about working in a startup business in Nigeria? 

Interestingly Elaigwu enjoys the challenge of building new products and systems; “the joy and feeling of satisfaction from being a part of birthing something that has the propensity to change lives and influence people and economies.”

Omnibizz is one business that gained from the successful solution delivered by OnePipe.

The unified distribution platform in the FMCG space digitized its operations in the wake of the Covid 19 pandemic. Omnibizz worked with OnePipe to embed financial services such that their customers can now pay directly into the account of their retailer. 

Their retailers can also place orders, track their sales, pay for their orders, apply for credit and get approved without leaving the digital platform provided to them by Omibizz. This has reduced and will continue to reduce the dependence on cash transactions with the attending risks. It offers seamless payments, an opportunity to bank the underbanked retailer and possible credit to grow their market

What are your winning strategies for managing people who work with you, both internally and externally?

“I default to treating people how I want to be treated, I also try to understand people and learn how to communicate with them.”

Conclusively, Elaigwu’s advice to women who choose to launch startups in Nigeria and hope to get operations of a business right, was: 

“In terms of operations, I would advise that you decide very quickly on the type of company you want to build and find one person whose job it would be to help champion that from the scratch. 

“When building a startup, operational practices may not be top on the list of most important things for the company because you’ll be building products, finding product-market fit and generally just figuring out. 

“With at least one resource dedicated to ensuring that you incorporate standard best practices into your operations and course-correct as you go, you are less likely to run into heavy-duty operational headaches in the future.”

The post Women in Fintech: Yvonne Elaigwu of OnePipe Speaks about Future of Payments in Nigeria; Key Trends appeared first on Tech | Business | Economy.

A 2024 study from Nnamdi Azikiwe University revealed that over 70% of cooperatives still rely on handwritten ledgers and informal cash contributions, leaving them exposed to defaults, disputes, and operational breakdowns. Even outright theft is not uncommon.

Cooperatives are vital financial safety nets for millions of Nigerians, especially in underbanked communities.

But as default rates rise and reconciliation periods become chaotic, a growing number of cooperatives are re-evaluating how they operate, and turning to technology for help.

“We use notebooks and WhatsApp to track payments,” says Iyabo Adebayo, treasurer of a 70-member women’s cooperative in Ibadan. “If someone misses their payment, it takes me days to follow up. Sometimes I just give up.”

This challenge isn’t isolated. The same 2024 study documented how manual tracking of dues and loans in staff cooperatives significantly reduced liquidity and increased the rate of defaults. During peak periods like June, when many cooperatives conduct financial audits, the consequences of poor tracking become more severe.

Recognising this pattern, a growing number of cooperatives are now implementing mandate-based systems like PaywithAccount, a direct debit payment tool developed by OnePipe.

The platform enables members to authorise automated deductions for recurring dues, removing friction, improving predictability, and reducing administrative overhead.

“The moment we switched to a structured mandate system, collections became smoother,” says Emeka Chukwu, who oversees a transport workers’ cooperative in Enugu. “It gives us peace of mind. No more excuses.”

Speaking on the trend, Ope Adeoye, CEO of OnePipe, said this trend portends a deeper systemic issue.

“When treasurers spend more time chasing payments than managing funds, the model begins to collapse. It’s encouraging to see more cooperatives adopting direct debit tools like PaywithAccount. The increase in uptake reflects a real need, people want structure they can trust, especially in these tough economic times.”

Industry experts believe such solutions could help stabilize grassroots finance.

“When dues are predictable, planning becomes possible,” says Temi Adedeji, a digital finance consultant. “It means more loans issued, better savings discipline, and less stress for treasurers.”

As Nigeria’s cooperatives approach their mid-year audits and dividend planning cycles, the need for more resilient, automated collection systems is becoming harder to ignore.

The post Over 70% of Nigerian Cooperatives Still Use Manual Collections Methods appeared first on Tech | Business | Economy.

For the most part, she made it work. But as the school grew, a new challenge took root. It wasn’t infrastructure. It wasn’t teacher retention. It was something far more basic: getting paid.

Each new term brings the same pattern. Parents promise to pay fees “by next week.” Some follow through. Many don’t.

As the term wears on, Mrs. Agbaje finds herself juggling spreadsheets, reminder texts, and awkward conversations in car parks or at school gates.

Meanwhile, salaries must be paid, books restocked, diesel bought. More often than not, she dips into personal savings to keep things running.

Her story is common across Nigeria. Small businesses—whether they’re schools, salons, logistics firms, or cooperative groups—are constantly navigating the emotional and financial toll of delayed payments.

And it’s not just a matter of inconvenience. A recent study by MacTay Consulting found that Nigerian SMEs wait between 60 to 120 days on average to receive payment for services or products already delivered. That kind of delay is more than a hiccup.

It threatens livelihoods. It blocks growth. It’s a silent killer.

For Chuks, who runs a car hire service in Enugu, the issue is tied to his bigger corporate clients. They insist on “net 30” or “net 60” terms—industry-speak for “we’ll pay you in a month or two.” That might be manageable for a large fleet with strong cash reserves, but for someone like Chuks, every week matters. With fuel prices rising and maintenance bills stacking up, he’s often forced to park cars because he doesn’t have the cash to fix them—even when work is lined up.

What links these stories is the reality that small businesses operate in a system where money is constantly in motion but rarely on time.

Customers often mean well, but their own financial instability creates a domino effect. And the existing tools to manage payments—handwritten ledgers, POS machines, WhatsApp reminders—were never designed for structure. They’re patched solutions to a systemic problem.

Even digital banking, for all its advancement in Nigeria, hasn’t solved this issue. Many SMEs still operate informally, managing finances through personal bank accounts or apps not tailored to business needs.

The result is a messy web of follow-ups, reconciliations, and emotional strain. Business owners become debt collectors, chasing down what they’ve already earned, time and time again.

What’s often missed in conversations about entrepreneurship is just how deeply this problem cuts. Payment delays mean rent can’t be paid on time.

It means holding off on hiring a new staff member, or letting go of a part-time assistant. It means saying no to growth opportunities, not because they’re not viable, but because the cash flow isn’t predictable enough to take the risk.

And when you zoom out, the implications are national. Small businesses make up over 90% of enterprises in Nigeria.

They contribute nearly half of the country’s GDP and employ a significant portion of the workforce. Yet, their greatest enemy isn’t market competition—it’s irregular income. This is a structural inefficiency that deserves far more attention than it gets.

Slowly, however, change is beginning to show. A quiet revolution is underway—one where technology is stepping in not as a trend, but as a tool for financial stability. More SMEs are beginning to explore digital solutions that streamline payments and reduce friction between businesses and customers.

Among these solutions is PaywithAccount, a new tool launched by Nigerian fintech company OnePipe.

Breaking the Chains of Payments Inefficiency, OnePipe Launches PaywithAccount for SMEs

Designed specifically for businesses with recurring payments—schools, cooperatives, service providers—it allows them to automate collections directly from customers’ bank accounts.

With full consent and transparency, payments can be scheduled, reducing the need for repeated follow-ups or awkward reminders.

For Mrs. Agbaje, this has made a significant difference. Parents receive structured payment plans, reminders go out automatically, and debits happen based on prior agreement. She now spends less time tracking who has paid and more time planning curriculum upgrades and engaging with teachers.

The benefit isn’t just financial—it’s emotional. When business owners don’t have to chase payments, they gain time, clarity, and confidence. They can plan ahead, restock inventory, or finally invest in that expansion they’ve put off for years. And for customers, the experience feels more professional, more trustworthy. Everyone wins.

Technology won’t solve every problem for Nigerian SMEs. But smart, well-designed financial tools are starting to remove some of the biggest roadblocks—quietly and effectively. And that’s the point. The best systems aren’t flashy.

They work in the background, reducing stress, restoring dignity, and enabling business owners to focus on what truly matters.

For Ope Adeoye, founder of OnePipe, the issue is personal.

“Every Nigerian knows someone who runs a business—a cousin, a friend, a neighbour. When they suffer from late payments, it affects whole families and communities. Fixing this isn’t just a business goal—it’s a social one,” he said.

In a country as dynamic and entrepreneurial as Nigeria, the challenge is rarely about lack of ideas. It’s about systems that help those ideas survive. And one of the most overlooked systems is the way money flows—or fails to.

As more SMEs embrace tools that put payment on autopilot, a future of stability—rather than constant survival—starts to feel possible. And in a nation powered by small businesses, that kind of shift could move mountains.

The post From Struggle to Stability: How FinTech is Helping Nigerian SMEs Overcome Cash Flow Challenges appeared first on Tech | Business | Economy.

Between outrageous transfer fees, failed transactions, and endless intermediary delays, the financial sector sometimes feels like a slow-moving train bound to get users upset.

Interestingly, the Nigeria Inter-Bank Settlement System (NIBSS) revealed that electronic payment transactions in Nigeria reached ₦600 trillion in 2023, however, cash says it’s going nowhere, and inefficiencies are unending.

OnePipe is stepping in to change this with its latest innovation, PaywithAccount, a seamless, secure, and automated bank-to-bank payment solution designed to wipe out intermediaries and enhance financial efficiency. 

The solution is particularly beneficial for small businesses struggling with cash flow constraints, delayed payments, and high transaction fees. 

A study by PwC revealed that 48% of Nigerian Micro, Small, and Medium Enterprises (MSMEs) have experienced delayed payments due to various reasons, with 33% reporting severe consequences. 

Traditional systems usually involve manual invoicing, repeated follow-ups, and high transaction fees, leaving business owners with less time to focus on growth.

OnePipe is simplifying financial transactions through API-driven solutions. Ope Adeoye, founder and chief plumber at OnePipe, said:

“Small businesses are the backbone of our economy, but too many struggle simply because getting paid is a challenge. We believe financial technology should remove obstacles, not create them. PaywithAccount helps businesses worry less about collections so they can focus on what truly matters—growth, innovation, and serving their customers.”

OnePipe was built on a vision to pull the services of financial institutions together into a set of APIs that are uniform in nature, making use cases born out of this to create the unimaginable.

Since that moment of inspiration, OnePipe has grown exponentially, now servicing 22,000 businesses monthly and processing transactions worth over half a billion dollars. 

Nonetheless, a fundamental challenge remained—direct bank-to-bank payments without third-party friction. With PaywithAccount, that missing piece is finally in place, enabling direct payments from accounts across 19 major banks, with more institutions expected to join.

PaywithAccount is Supporting SMEs and Enhancing Financial Inclusion

PaywithAccount is not limited to being a convenient tool; it brings a solution that addresses the tiresome challenges faced by businesses, especially SMEs. The removal of intermediaries ensures faster settlements, improved cash flow, and reduced operational costs.

Ngover Ihyembe-Nwankwo, executive director at Nigeria Inter-Bank Settlement Systems PLC (NIBSS), spoke on its significance: “Account payments can really empower small businesses, drive growth, and ensure financial inclusion. Many businesses struggle with cash flow limitations, inefficient payment processes, and high transaction costs. They need solutions that provide speed, security, and simplicity without the friction that often comes with traditional payment methods.

“At NIBSS, our core vision is to empower the financial ecosystem to innovate within the framework of interoperability, ease of connectivity, collaboration, and cost-optimisation,” she said.

“PaywithAccount is another heartening example of what happens when industry players leverage these guardrails to enhance the overall quality of our nation’s digital payment system.”

For entrepreneurs across Nigeria, the ability to receive payments on time means the difference between survival and growth. Mrs Olumide Ashade, founder of King’s Court School in Lagos, shared her perspective:

“As a school owner, I want to focus on my students, not spend hours tracking unpaid fees. Many of our parents pay in instalments, but managing these payments manually has been stressful. A solution like PaywithAccount means we can offer flexibility to parents while keeping our finances in order.”

One of PaywithAccount’s greatest strengths is the collaboration behind its success. Ihyembe-Nwankwo asserted the importance of ecosystem-wide cooperation: “Innovation does not happen in silos… It requires a full ecosystem. You need regulators, financial institutions, fintech innovators, and businesses all working together to solve problems and drive progress.”

Again, compliance and security are top priorities. “The financial ecosystem thrives on trust, and that trust is built on a strong foundation of compliance, risk management, and consumer protection,” she added.

The automation PaywithAccount brings makes transactions more predictable and reliable. Adedeji Olowe, founder of Lendsqr, explained:

“Reliable repayment is the backbone of growth for lenders. At Lendsqr, we understand that payment delays are a significant problem for lenders. We have helped many of our lenders transition from debit cards to PaywithAccount, which reliably ensures loan repayments are on schedule.”

The telecom industry, for example, stands to benefit greatly. PaywithAccount can bridge the gap between prepaid and postpaid services, providing telcos with a more flexible and reliable payment structure. 

PaywithAccount also provides a seamless alternative, ensuring that even market traders can receive digital payments without issues, as many small market sellers have started realising the importance of digital payments, after losing customers due to cash scarcity.

Beyond business benefits, PaywithAccount is expected to enhance financial inclusion by providing unbanked and underbanked individuals with easier access to digital transactions, further integrating them into the formal economy.

The post Breaking the Chains of Payments Inefficiency, OnePipe Launches PaywithAccount for SMEs appeared first on Tech | Business | Economy.

The event was a pivotal part of OnePipe’s vision and mission, underlining the company’s commitment to the democratisation of financial technology and support for grassroots businesses in Nigeria

“The Growth Lab was crafted with the intent of supporting the core of Nigeria’s economy – the informal sector, by providing them with actionable financial tools to foster growth and sustainability,” expressed Yvonne-Faith Elaigwu, Head of Operations at OnePipe. “This initiative is a clear indication of our unwavering commitment to promoting financial inclusion, economic advancement, and individual wealth within Nigeria’s expansive, yet overlooked informal economy.”

The informal economy in Nigeria, which accounts for approximately 65% of the country’s GDP, houses millions of retailers and distributors. With the right financial tools, these entrepreneurs have the potential to transform their businesses. ‘The Growth Lab’ showcased this potential, primarily through a compelling keynote speech by Yemi Chukwurah, CEO, Seams and Stitches Limited, which elucidated OnePipe’s blueprint for using digital instruments to uplift these professionals.

One notable tool, GrowTrade, was prominently featured during ‘The Growth Lab’. GrowTrade is a cutting-edge platform devised to assist distributors and retailers in enhancing their businesses. Attendees were privy to genuine testimonials from a distributor and a retailer who have reaped substantial benefits from GrowTrade, witnessing a remarkable amplification in their business trajectory.

The occasion also encompassed engaging breakout sessions that spotlighted new OnePipe initiatives and methodologies for harnessing customer service for expansion. The day culminated in a robust Q&A dialogue centred on financial inclusion, a topic of paramount importance in Nigeria’s fiscal milieu.

The Growth Lab event symbolises a platform, a declaration, and a pledge. We, at OnePipe, recognize the latent potential of our retailers and distributors. The Growth Lab was conceptualised to harness this potential, propelling growth, enhancing efficiency, and edging us closer to our envisioned future – a Nigeria where financial freedom is accessible to all,” declared Abang Emenyi, Head of Growth and Marketing at OnePipe, who concluded the event.

The post OnePipe Empowers Nigeria’s Informal Sector through ‘The Growth Lab’ appeared first on Tech | Business | Economy.

The sights and sounds of a bustling local market in Lagos on a busy Saturday are something to behold. Traders energetically marketing their goods, buyers engaging in spirited negotiations over prices, money exchanging hands in quick succession – it’s a vibrant tapestry of entrepreneurship.

Yet, within this lively picture lies an untapped transformative opportunity: electronic payments (ePayments).

In the modern digital age, ePayments have the potential to reshape these scenes, imbuing them with a level of efficiency, safety, and speed that cash transactions simply cannot match. But the journey to this promising digital landscape is not without its hurdles.

To make ePayments work for everyone – the users, businesses, and merchants – an intricate framework of sound policies and regulations is needed.

One of the critical aspects of this regulatory framework is financial inclusion. The digital transformation should not cater only to the privileged few but must be accessible to everyone, irrespective of their location or financial standing.

So, the narrative of financial inclusion must shift from being a mere goal to a critical policy requirement.

This involves policies that promote digital literacy, ensure investments in digital infrastructure across urban and rural areas, and encourage businesses to adopt ePayments.

Interoperability is another essential component of a robust ePayment system. The seamless interaction between different payment systems maximizes the convenience of ePayments. Hence, regulations promoting interoperability, such as open banking policies, are crucial. These ensure that regardless of a user’s location or preferred payment service, their transactions can be processed smoothly and efficiently.

Then there’s the significant matter of cybersecurity. As we embrace digital technologies, we must also acknowledge the reality of cyber threats. These threats pose considerable risks to ePayments due to the sensitive nature of financial information.

Addressing these risks requires robust cybersecurity regulations that offer clear guidelines to financial institutions and fintech companies for securing their platforms. Such regulations are key to safeguarding users’ funds and personal data, and in turn, fostering trust in ePayment systems.

However, these regulations and policies must be born out of consultations with all stakeholders – users, businesses, and merchants. This inclusivity in policy-making ensures that the resulting regulations are not only robust but also practical and sensitive to the unique needs of the Nigerian market.

It’s also crucial to remember that drafting policies is just the first step; effective enforcement is equally important. Regulators must have both the capacity and the resolve to enforce these policies. They need to monitor compliance by financial institutions and fintech companies, and any non-compliance needs to be addressed promptly and firmly.

ePayments, in the grand scheme of things, can ignite a financial revolution in Nigeria. They can stimulate economic activity, foster financial inclusion, and revolutionize the way we transact. However, to unlock this potential, we need comprehensive, thoughtful, and inclusive regulation.

With the right policies in place, ePayments can become a win-win solution for all stakeholders, transforming Nigeria’s financial landscape and propelling the nation towards a prosperous future.

This is our golden opportunity to shape the future of finance in Nigeria, and with meticulous planning and execution, we can ensure that ePayments truly work for everyone.

The post Demystifying ePayments: How Policies and Regulations Can Make Them Work for Everyone appeared first on Tech | Business | Economy.

In recent years, non-bank providers have been integrating financial services into various products and services. This enables merchants that have these embedded financial services to interact with their customers in new ways.

Recall Nigeria’s recent cashless experiment? The main problem was not because the country wanted to go cashless, rather, people were unable to pay for goods and services. Yet, embedded finance could have solved this.

There were stories for instance in the poultry industry where thousands of farmers were said to have disposed of their eggs simply because they were dependent on cash. Maybe not individually but the value chain in which they operated was cash dependent. But what if one of the many big players had introduced embedded finance in that value chain?

The European Merchant Bank notes that embedded finance has the opportunity to truly change the financial sector forever, reaching a $138 billion value by 2026.

Other estimates value this market in the trillions of dollars over the next decade, and Nigeria can also tap into these potentials in driving a cashless economy.

Here are three possibilities with embedded finance:

1. Embedded payments

Embedded payments refers to the integration of payments capabilities within an app or a platform that was not primarily designed to offer financial service. What it does is that when users need to make payments within that ecosystem, they need not go outside of it before money can be exchanged.

So, imagine in the midst of all the commotion from Nigeria’s cashless experience, if more organisations providing goods or services had embedded payments, there would have been less worry for Nigerians desperate to find cash.

From such platforms, payments could have served a wide range of reasons, depending on what segment of the economy they were serving.

Examples abound in western markets from Starbucks, Uber, Amazon, Google and even WhatsApp which has a payments service.

Having some of such platforms locally, would have provided reputable intermediaries trusted by people expecting to get paid. For emphasis, while the fear of fake transfers remained an obstacle for some people, receiving payment via WhatsApp (for instance), which they already trust and use daily, would have been easier to adopt.

2. Embedded credit

This works both ways. On one hand, it can enable businesses to extend credit to their customers, allowing them to transact without the need for cash. On the other hand, it can be particularly useful for small businesses, which are already mostly starved of credit, to get access to lending that can keep them afloat when they do not have cash to operate.

What happens when you operate in an industry where vendors are bent on collecting cash before they supply you inputs? This happens a lot, beyond the urban, cosmopolitan areas of Nigeria, where cash still reigns.

In other instances, those coming to buy from you, after you have sourced inputs and produced a thousand eggs, usually only bring cash. However, since their retail side customers did not have access to cash during the cashless period, it means they also didn’t have money to buy from you. As simple as this may sound, it led to the collapse of many businesses.

A solution to both sides of this chaos could have been embedded credit. If enterprises had adopted one platform or the other, which allowed them to embed credit products into their business platforms, they could have been able to allow their consumers to apply for, acquire and repay loans within the platform. They could also have secured credit for their business, maybe in the form of inputs to keep their businesses afloat during the cashless period.

The best part is that they need not invest in custom made technology. These could in fact, be done at, say, cooperative or association levels, and not borne by individuals.

3. Embedded banking

Imagine paying your Uber driver after a trip, but doing so from your wallet in the Uber App. The driver gets this money but does not need to move it to their ‘regular bank account’. Why? Because the ride-hailing app has a feature for a savings account.

This would mean whatever transactions they needed to do from a bank account could now take place from that same Uber app where they picked a customer, got paid and can in turn pay for anything they need.

The payments and credit feature earlier discussed, as well as everything else you can think of in a bank setting, can take place from this facility. This may sound foreign, but an ecosystem like this is possible in Nigeria. It in fact, depicts what could be a perfectly cashless environment. It could even go as far as issuing debit cards, which are linked to that account for them to pay for whatever they somehow can’t do from the app.

Embedded finance can deliver a win-win situation to both businesses that embrace them as well as their customers. The ease of access and low cost to entry is likely to make it viable across social demographics in a place like Nigeria.

The post Three Ways Embedded Finance can Drive a Cashless Economy appeared first on Tech | Business | Economy.

Amina, a small grocery store owner in bustling Lagos, Nigeria, is the embodiment of resilience.

Her store is an essential hub in her local community, a place where neighbours can find everything from essential food items to occasional sweet treats for the children.

It’s the place where Amina shares smiles and small talks with her customers while providing them with their daily needs.

However, running a small business like Amina’s is not without its challenges. One of the significant obstacles she faces is securing credit to purchase inventory.

Imagine this: it’s a bright new day, and Amina opens her shop, ready to serve her community. She is greeted by the warm smiles of her customers but also by the hard reality of her half-empty shelves.

The market prices have been fluctuating, and her cash flow is strained. This is a predicament that many small business owners like Amina face – maintaining a well-stocked store while grappling with cash flow issues and market unpredictability.

Here enters inventory finance, a financial innovation that serves as a lifeline for entrepreneurs like Amina.

This form of credit provides funds for purchasing inventory, acting as a steady bridge over the turbulent waters of cash flow challenges. With inventory finance, Amina can replenish her shelves without straining her finances.

Let’s picture the transformation this brings: Amina, once concerned about her dwindling inventory, now walks into her supplier’s warehouse with confidence. Thanks to a fintech firm offering inventory finance, she can purchase the items her customers need on credit.

This makes her store a reliable one-stop-shop in her community. It’s like she has found a magic key that unlocks a door to endless possibilities for her business.

Inventory finance also arms Amina with a shield against the whims of market price fluctuations. As any seasoned business owner will tell you, prices can be as unpredictable as the weather.

With inventory finance, Amina can buy more stock when prices are low, protecting her business from sudden price hikes. It’s a strategic move, a way to navigate the choppy waters of the market with a reliable compass.

However, the benefits of inventory finance aren’t confined to Amina alone. A thriving local business means more employment opportunities and more income circulating within the community. It’s akin to a tree planted in the heart of a community; as it grows, its roots spread, and its shade provides comfort to many.

While inventory finance is not a new concept globally, its penetration in many parts of Africa, including Nigeria, has been minimal. But this is changing. In Nigeria, for instance, innovative fintech companies have embraced the challenge, and are working tirelessly to drive the adoption of inventory finance among small business owners. These companies are the bridge connecting Amina and thousands of other business owners to the benefits of inventory finance. They have adapted a solution known globally to fit the unique challenges and opportunities of the Nigerian market, thus redefining the landscape of small business financing in the country.

Inventory finance is more than just a financial tool; it’s a catalyst for change. It’s transforming small businesses, invigorating communities, and reshaping economies. Behind this transformation, fintech companies like OnePipe, with their Pay4Me product on the Growtrade platform are the unsung heroes, championing the cause of small businesses, one loan at a time.

So, the next time you pass by a bustling, well-stocked small shop in Nigeria, remember that behind the abundance, there’s a story of resilience, growth, and innovation.

It’s a story where small business owners like Amina are the protagonists, and inventory finance is their empowering ally.

This unfolding narrative holds the promise of a more prosperous and inclusive economy where every small business can truly thrive.

The journey towards this promising future is underway, with every inventory financed, every shelf stocked, and every small business supported.

*Abang Emenyi is the Head, Growth & Marketing at OnePipe

The post Inventory Finance: The Empowering Ally of Small Businesses in Nigeria appeared first on Tech | Business | Economy.