From the creation? You cannot win. It will be a long, tiring tale without an end. In the end, you will not win the case.

On the one hand 

Research has shown that Africa has become a hotbed for digital payments. Digital payments have helped promote financial inclusion and facilitate economic growth.

They have become a daily tool for earning a living. For improving the availability of financial services. For raising families out of the dungeon of poverty. Ask the PoS operator in your neighbourhood. In the heart of these payments lies a tool. The mobile phone.

On the other hand

This tool has helped push the boundaries of payments in Africa. Research revealed that many African countries have integrated digital payments into their payment infrastructure.

They are reaping the benefits. For instance, in 2020 mobile wallet transactions in Kenya reached 87% of the country’s GDP.

In Ghana, it was equivalent to 82%. Despite the infrastructure deficit, mobile phones are helping to push transactions across borders.

In the long term

Digital payments have helped to grow some economies. These have reduced the reliance on physical cash. Digital payments allow you to receive transactions faster and easily.

According to a report, 57% of Africans do not have bank accounts. Yet, digital payments have helped to improve access to financial services, eliminating barriers.

For instance, the World Bank report said the informal sector is the primary source of employment in Africa.

It accounts for 80.8% of the jobs on the continent. With digital payments, these businesses can access credit and formal financial services. Create a digital financial footprint. Participate in the formal economy. Enable businesses to make payments. You see, it is difficult to yank the mobile phone out of digital payments.

Because of the mobile phone, financial transactions are efficient. Transparent. Secure. Creating an atmosphere for economic growth.  Beneath this growth, however, some engines make it easy for individuals and corporate organisations to enjoy seamless transactions.

There is NIP in Nigeria. South Africa has Payfast. Egypt has Paymob. These machines drive financial inclusion.

They empower financial service providers. Deliver reliable and efficient payment experiences to customers.

The future of digital payments in Africa is assured with these machines. More machines are in the pipeline. These machines will expand the payment frontiers. Deliver innovative solutions. Overcome challenges. Create opportunities.

In the short term

Amid challenges, the digital payments platforms are delivering results. Explaining that to the uninitiated is akin to explaining the life of a camel to a whale. It is intriguing.

There is a market in the target addressable market. As proof, her product has gained traction in three northern states. She has successfully onboarded some merchants in the north for two years. But she has not been able to scale it. Shake it down. Sweat it up. Because she does not have the deep pocket of an MTN.

But she got the attention of some VCs. A few of the VCs have not been able to remove the beam in their eyes so that they can see the unicorn in the product.

Some are thawing. Others are stalling. The failure of some fintech start-ups is staring them in the eye.

Therefore, she has moved into a safe mode. Not her, but her mobile money product. Do not ask for the details. I will not tell you. The product is in a safe. It is safe where it is.

She has locked it away. She is waiting to place it in safe hands. Or in a safe. Meanwhile, she has closed her office. Paid off her employees. Quietly, she is waiting for another time. To strike again. Or sell out. To a safe hands.

On the one hand 

Similarly, Thepeer, a Nigeria-based API start-up that raised a $2.1 million seed round in June 2022, has folded up. The investors would get what they invested. The business could not scale.

In a statement, the three-year-old start-up said it closed shop after realising its exceptional technology alone was insufficient. The firm had a compliance challenge. It could not accept wallets as a viable payment option. Therefore, it did not grow as rapidly as ‘we had hoped’. The founders said.

On the other hand

According to Crunchbase, Thepeer had raised $2,320,000 from investors. One of the investors is Paystack co-founder, Ezra Olubi. Other investors are RaliCap, Timon Capital, BYLD Ventures, Musha Ventures, Sunu, and Uncovered Fund.

In the long term

The peer used its APIs to provide an alternative network where fintechs and businesses can embed different sets of products into their applications and websites for customers to move funds easily. The company had hoped to connect wallets across over 400 fintechs across the continent to enable payments.

Kosisochukwu Ononye and Michael “Trojan” Okoh co-founded Thepeer. The duo had hoped the business would power infrastructure for small to medium-sized fintech businesses. In 2022, its monthly transaction volume reached millions of dollars.

It had an average month-on-month transaction growth of 161%. It was going to expand to Kenya, South Africa, and Egypt. Overall, its hopes and growth did not align with the market’s needs.

Therefore, like my friend, Thepeer founders have decided to place the product in maintenance mode for the interim. They will work to maintain the platform for as long as possible until they discover a ‘new home for it.”

In the short term

It is challenging to build fintech businesses on the continent. My friend and others wear their scar like a badge.   [Featured Image Credit]

*Rarzack Olaegbe is the co-founder/COO, eMaginations Comm. Ltd., wrote from Lagos

Detoxification uses various methods. Diet. Herbal remedies. Intermittent fasting. Therapy. Research says the goal is to support your body’s natural detox systems: the liver, kidneys, and digestive tract to cleanse and purify your body.

On the one hand

A digital detox detaches you from social media platforms and electronic devices: mobile phones, laptops, or tablets.

It is a digital reset. It forces you to be present. The idea is to break the cycle of dependency on digital devices. The overall effect can lead to improved mental health. Better sleep. Meaningful interactions with others. I observe digital detox every week.

On the other hand

A Fintech detox can be as short or as long as you want. Recently, I had a 72-hour Fintech detox. I was refreshed. You may not even think about it. But in the new dispensation, you may go days or weeks without engaging Fintech in any form.

It may be a major reset. It is up to you. For me, I took three days off and shunned engagements with Fintech. I took a break from Fintech. I did not use Fintech products, even to receive and send funds. Can you try it?

In the long term

The pandemic has changed the electronic payments landscape and hastened the adoption of instant payments as people switch to electronic channels for funds exchange. The Covid has transformed our lifestyle. Electronic payment is our world.

The effect of the pandemic has pushed all of us to worship at the Fintech altar. We have moved from cash to card, from bank branch to virtual payment and from virtual to instant payment.

Then many Fintech start-ups emerged to oil the path of worship. A report from ACI Worldwide and Global Data, a leading data and Analytics Company, and the Centre for Economics and Business Research says the volume of real-time payment transactions in Nigeria’s economy will hit 8.9 billion in 2027 from 5.1 billion in 2022.

NIBSS Instant Payments (NIP) is Nigeria’s real-time payment system. NIBSS rolled out NIP in 2011. It is an account-number-based online, real-time inter-bank payment solution. The banks, micro-finance banks, and mobile money operators support NIP.

You can use it via the Internet, mobile banking, bank branches, kiosks, USSD, PoS terminals, and ATMs. This has helped NIP to achieve high adoption and usage rates.

With Fintech detox, you have eliminated phishing, identity theft, and fraud because you rely on cash and not a card. Your spending is minimised.

You are not compelled to spend money because you have prepared for all your needs in advance. No mobile banking. No USSD. No online shopping.

You will not send money via electronic means. You will rely on cash for your purchases. You will not register to complete any transaction.

You’d reduce screen time. In exchange, you will have productive time. For instance, if you spend an average of six hours online per day, that is about 180 hours per month. You can transfer this to improve your life.

By disconnecting from Fintech, and by extension digital, I did more. I concentrated more. I got more out of life.

I finished personal projects on time. Maybe you can work at it too. In the process, you could pick up a new skill that could lead to a promotion. Or get a raise at work. Perhaps you can start a side hustle for some extra income.

When I discovered Fintech detox, I was on a digital detox. I had restricted access to my mobile phone and laptop. The devices were in my limo’s trunk at a retreat. Yes, because I had no access to my devices, I had no access to the Fintech menu. That was the ha-ha moment.

The next time you need more hours to work on a project, consider a digital detox. It will lead you to Fintech detox. No screen time equals Fintech detox. Fintech detox means working offline.

In the short term

With Fintech, you need a device to pay bills, make transfers, and shop online. Start with a digital detox. Then graduate to Fintech detox.