The African fintech landscape is evolving rapidly, with startups claiming 35% of funds raised in early 2024 and focusing on innovations in credit cards, payment systems, and social commerce.
Fintech companies are solidifying their foothold in Africa’s technology landscape, having secured a significant 35% of total funds raised during the first half of 2024. This trend highlights the ongoing maturation of the sector, with startups emerging across four main categories poised to lead the market in 2025.
In the credit card domain, Nigerian startups Allawee and MONAPP are spearheading initiatives to address the country’s low adoption rates. Allawee targets individual consumers while MONAPP focuses on commercial drivers, both aiming to enhance the accessibility and utilisation of credit cards in Nigeria.
The contactless payment segment is becoming increasingly competitive, with startups such as TAP, Karla, and Cash Africa emerging as leaders. These companies are concentrating on providing seamless, near-field communication (NFC)-enabled transactions, aiming to streamline payment processes for users across the continent.
Meanwhile, advancements in payment infrastructure are being made by startups including Zone, Keyrails, and HUB2. These innovators are redefining cross-border payment systems, utilising blockchain technology and application programming interfaces (APIs) to optimise operations and bolster fraud prevention measures.
In social commerce, trust issues are being tackled by escrow service providers Middleman and Aje, which offer secure, blockchain-based payment solutions. These services aim to foster confidence among consumers, encouraging more widespread use of digital financial transactions within the platform.
The trajectory of these fintech companies illustrates a period of rapid innovation within Africa’s financial technology sector, showcasing an environment that is increasingly competitive and forward-thinking. The emphasis on emerging technologies indicates a promising future for fintech in Africa as it continues to evolve to meet the needs of its users.
Source: Noah Wire Services
- https://titc.io/the-state-of-fintech-in-africa-in-2024 – Corroborates the significant investment and growth in the African FinTech sector, including the dominance of FinTech in tech funding and the focus on various regions such as West Africa, East Africa, and South Africa.
- https://www.inclusiontimes.com/allawee-rolls-out-first-credit-building-card/ – Supports the information about Allawee launching Nigeria’s first credit-building card in partnership with Mastercard, targeting individual consumers to enhance credit accessibility.
- https://thecondia.com/allawee-mastercard-credit-card-launch/ – Provides details on Allawee’s credit card launch, including the partnership with Mastercard, Providus Bank, and Remita, and the target audience of Federal Government Civil Servants and NYSC Corpers.
- https://gftn.co/insights/state-of-fintech-in-africa-first-half-2024 – Corroborates the decline in FinTech investments in Africa during the first half of 2024 and highlights the primary recipients of FinTech funding, such as Nigeria, Cote d’Ivoire, and South Africa.
- https://titc.io/the-state-of-fintech-in-africa-in-2024 – Supports the maturation of the FinTech sector in Africa, with a focus on later-stage investments and the diversification of funding sources.
- https://www.inclusiontimes.com/allawee-rolls-out-first-credit-building-card/ – Details the features of Allawee’s credit card, including instant credit approval, wide acceptance, and flexible repayment terms, which enhance the accessibility and utilisation of credit cards in Nigeria.
- https://gftn.co/insights/state-of-fintech-in-africa-first-half-2024 – Provides insights into the competitive landscape of FinTech in Africa, including the growth in East Africa’s FinTech sector during Q2 2024.
- https://titc.io/the-state-of-fintech-in-africa-in-2024 – Highlights the regional focus of FinTech investments, with West Africa, led by Nigeria, and East Africa experiencing significant growth.
- https://thecondia.com/allawee-mastercard-credit-card-launch/ – Explains the role of Remita in facilitating payment collection and reducing the risk of default for Allawee’s credit card users.
- https://gftn.co/insights/state-of-fintech-in-africa-first-half-2024 – Details the decline in the number of deals and average deal size in the African FinTech sector during the first half of 2024.
