Chloe Andries
TechInAfrica – The FinTech industry in Africa is not only growing, but also flourishing. Almost a third of the funds raised by African start-ups in 2017 were devoted to the information technology industry. In 2018, venture capital financing for African start-ups increased by 51% to $195 million. There are a multitude of new companies that are transforming the way consumers use technology and redefining the customer experience in financial services.
We have compiled a list of five promising young African companies offering cash management, lending, credit evaluation, money transfer, savings and payment services.
- Piggyvest
This company is addressing an endemic problem in Nigeria and across Africa: savings. According to the company, 80% of Nigerians – and probably all Africans – must save at least 40% of their monthly income to survive and pay for their daily expenses. However, in a society like Nigeria, without a credit system so to speak, the vast majority of payments made in cash and savings are inevitably erased.
Founded in 2016, Piggyvest is a mobile savings platform for young people in Nigeria and beyond.
In 2019, we look forward to seeing the company maintain its performance to date. It could even launch other innovations by the end of the year.
- Paystack
Although Paystack is less than two years old, it has already become one of the leading fintech companies in Nigeria and even in Africa. Founded in 2016, Paystack offers payment services to more than 17,000 companies and is responsible for 15% of all online payments that take place in Nigeria today. It’s a big deal for such a young startup. The company’s start-up also raised millions and millions of dollars from foreign and local investors.
Last year, it was one of three Nigerian fine technology companies CB Insights, which ranked among the 250 fastest growing fine technology companies in the world.
Many people already expect Paystack to offer them a mobile application, something he will most likely reveal as the year progresses.
- Jumo
Last year, the fintech startup based in Cape Town became the first South African startup to be selected by Google for its Launchpad accelerator.
Jumo facilitates digital financial services such as credit and savings in emerging markets. The start-up, founded in 2014 by Watkins-Ball, is already active in seven African countries – Ghana, Kenya, Kenya, Rwanda, South Africa, Uganda, Tanzania and Zambia, as well as Pakistan and Singapore.
Since its inception, approximately 7.5 million customers have used the platform to save or obtain credit. Of these, about 75% are small business owners. All eyes will be on the big business to come by the end of 2019.
- BitPesa
This pan-African IT startup redefines the way companies make payments to and from sub-Saharan Africa. Focusing on using the advanced technology of the block chain to increase market efficiency, BitPesa opens corridors for trade payments and trade between Africa and the rest of the world. As expected, this Kenya-based startup is one of Africa’s best-known startups with its 6,000 customer chain payments in 85 countries.
The start-up, which allows users to buy and sell digital currencies while making international payments, also acquired the online money transfer platform TransferZero, based in Spain, in early 2018, to further accelerate its growth around the world.
- Numida
From tracking expenses and debts to providing more than financial data for lenders, Numida’s TrackApp application could open the door for small businesses to access the funds they need at competitive rates they can afford. With TrackApp, small business owners and potential owners can track every aspect of their finances. They can identify, analyze and correct bottlenecks, overspending and gaps that need to be addressed. This information helps to increase profit margins and reduce costs in many areas. We will definitely keep an eye on this FinTech startup!
From mobile money transfer applications to technology companies committed to helping users save, these young African technology companies come from all over Africa. Have we missed FinTech’s start-up tours in Africa and elsewhere? If so, leave us a comment below.
Source: Afrohustler
