Woven Finance, the Nigerian fintech startup known for simplifying day-to-day business transactions through digital payments, has announced the discontinuation of its services.
The decision, communicated to customers via email on Wednesday morning, cites a thorough analysis of current market dynamics and their impact on Woven Finance’s business model.
Founded in 2020 by Adedeji Olowe, Woven Finance aimed to “demystify digital payments” by providing business owners with a virtual account for streamlined payment collection, addressing common challenges such as reconciliation and settlements.
Fully licensed by the Central Bank of Nigeria (CBN) in 2022, the fintech held a Payment Solutions Service Provider (PSSP) license.
Trium, the venture group by Coronation Group, backed Woven Finance. Coronation Group, which includes entities like Coronation Merchant Bank and Coronation Insurance, became part of Access Bank after the acquisition of Intercontinental Bank.
Woven Finance’s move to discontinue operations in the first quarter of 2024 is noteworthy. The fintech has opted to transfer its services to Hydrogen, a fintech company owned and operated by Access Bank.
Kemi Okusanya, a former General Manager at Visa West Africa, leads Hydrogen.
While the exact dynamics prompting Woven Finance’s decision remain unclear, industry speculation suggests that increasing competition from well-established fintechs and bank-led fintechs like Zest, and Hydrogen may have influenced this strategic move.
In a statement to customers, Woven Finance reiterated its obligation in making payment processes simpler, emphasising the ease of bank transfers for payments.
The transition to Hydrogen is expected to provide continuity for users and enable Access Bank to strengthen its foothold in the changing digital finance sector.
The discontinuation of Woven Finance’s services reveals the dynamic nature of the fintech industry, with companies making strategic decisions to scale evolving market conditions and competition.
