Banking
Retail Banks Well-Positioned for Success in Mobile Wallets—Report
Earlier this week in Nairobi, Kenya Interswitch Group, one of Africa’s most influential payment players formally unveiled their 2024 Global Payments Innovation Jury Report, a significant research effort into the outlook for innovation in payments globally, conducted in partnership with The World Bank, and notable international payment operators, namely HPS and Fime.
This is sequel to the 1 st unveil of the report in Lagos, Nigeria, where Interswitch is Headquartered in mid-March Presenting the latest report titled: “Market meltdown – impacts on infrastructure, regulation and innovation” at Interswitch’s offices in Nairobi, East Africa’s key hub for payments and fintech, John Chaplin, Senior Adviser/Board Director at Interswitch, and also the Founder and Chairman of the Global Jury unpacked some major insights encapsulated in the report, which analyses the in-depth perspectives of over 130 payment experts spanning all continents of the globe.
At the media presentation, which represented an opportunity to engage with key stakeholders in the region, Chaplin, whose career trajectory spans over 4 decades in the payment industry across leading payment companies including Interswitch, Visa, First Data Corporation and Global Processing Services reflected on the last 2 years of dynamic market activity in the global fintech and payments space, stressing that the unique insights of industry leaders across various markets has never been more needed than at a time such as this.
He particularly highlighted the jury’s depth of understanding of the causes and effects of macroeconomic changes and their impact on the long-term direction of the payments industry which helps the industry as a collective to understand how to navigate the turbulence of the times.
Asked which findings from the report findings were somewhat unexpected, Chaplin cited the general views expressed by the payments innovation jury alluding to banks being seen to have potential as long-term players in the mobile wallet space. According to the report, which plays up the growing importance of compliance and risk management as pivotal considerations as payment volumes grow exponentially, “Most of the mobile wallet buzz is around new market entrants (mainly MNOs in developing markets and fintechs everywhere) but the Jury thinks that the banks are not finished yet and that they are best placed for success once the market for wallets becomes more regulated, as they have so much experience managing compliance at scale…”
From a perspective of profitability versus growth, Chaplin opined “I think that profitability will remain much more important than hyper growth. Over the past few years, investors and the broader market have tended to believe that high growth automatically leads to profitability. I don’t think that is always right. Business leaders should always be seeking to generate a return for shareholders in the not-too-distant future.”
With research undertaken in collaboration with World Bank and supported by Interswitch, FIME and HPS, the 2024 Payments Innovation Jury is the most diverse in its 16-year history. 136 Jurors from all over the world participated in the research, all in senior roles at national payments companies, banks, fintechs, payments policy bodies, central banks and investors.
This year, the number of central bank; regulators and investors each increased by 25%, enabling an even more representative picture of the challenges and opportunities ahead. The Jury was also delighted to welcome several Jury members from South and Central America for the first time, making the insights gathered truly global.
Commenting on the Interswitch Group’s frontline role in bringing the report to fruition, Mitchell Elegbe, Founder and Group Chief Executive Officer stated that “We are thrilled at Interswitch to also contribute our perspective, as a pan-African payments innovation enabler, to this report which, with every edition, continues to facilitate more balanced appraisal and better understanding of the global payments industry as it continues to evolve ever so dynamically.”
The 2024 Global Payment Innovation Jury report offers insight into many aspects of the payments industry that were impacted by the recent period of market turmoil. Key findings from the report are synthesized below:
- The primary reason for previously high payment company valuations and funding rounds was investors bidding up deal prices and paying insufficient attention to profitability – a view shared by the investors canvassed.
- The above has led to a greater focus on earlier profitability over hyper-growth, which the Jury overwhelmingly regard as a positive for the industry – although there’s a lack of consensus on whether this is a long-term market movement
- The key differentiator between profitable and nonprofitable players is now cost management, not revenue growth, howbeit with a significant number of respondents positing that they believe this is ultimately a positive change for the global payments industry, tempered by equally valid concerns that direct consequences of the recently increasing focus on early profitability could be reduced levels of innovation which may impact future growth.
- Businesses developing AI and climate fintech tools and technologies will benefit from the diversion of investment from payments businesses.
- In emerging markets where cards have not yet gained a significant foothold, they will struggle to gain cut through when competing with account-to-account payments and mobile money.
- Credit and debit cards will be hard to dislodge from their leadership role in developed markets, but growth will be much harder to achieve than previously.
- Banks, rather than fintechs or mobile network providers, will ultimately be the major players in mobile wallets globally.
- The talent acquisition activities of payment enterprises in developed markets are a significant challenge for those in emerging markets, with almost 60% of Jury members in emerging markets saying that they are losing an unacceptable number of staff withconsequential risks to innovation programmes and sometimes even ongoing operations.
- High-profile crypto exchanges failures, such as FTX in the US, can impact confidence in global markets – not just where the failures occurred. This is clearly a concern for national regulators but remains complex to address.
- APAC retains its crown as the region with the most payment innovations, but perhaps more surprisingly, Africa & the Middle East was a clear second favourite despite Africa’s macro-economic challenges, relatively low levels of investment funding and now a talent drain – a clear tribute to the resourcefulness of the continent’s entrepreneurs and policy makers.
Importantly, it is a foundational practice of the Payments Innovation Jury that all members participate on an anonymous basis, as this allows them to speak freely – unencumbered by the commercial priorities of their current organisation.
By Adedapo Adesanya
Nigerian financial services firm, Moniepoint Incorporated, processed N412 trillion in transaction value and disbursed more than N1 trillion in loans to small businesses in 2025, as the company continues to grow Nigeria’s expanding retail payments and credit structure.
The company said it handled more than 14 billion transactions during the year and now powers about 80 per cent of in-person payments nationwide, underscoring the increasing concentration of payment flows through a small number of fintech platforms.
Moniepoint also averaged 1.67 billion monthly transactions in 2025 and grew its card user base by 200 per cent, with its cards being used 1.7 million times daily.
The organisation also processed over 500,000 data renewals daily, while customers spent N90 million ($64,264) daily at gyms.
Moniepoint’s scale reflects a broader shift in Nigeria’s payments landscape, where point-of-sale terminals and digital transfers have become central to everyday commerce, from neighbourhood shops to open-air markets.
Founded in 2015, Moniepoint has evolved from a backend technology provider into Nigeria’s largest merchant acquirer, offering payments, banking, credit, foreign exchange and business management tools to more than 6 million active businesses.
The company said it expanded lending to small businesses that are often excluded from bank credit, disbursing more than N1 trillion in loans through its microfinance banking unit in the year under review.
“Our focus has been on building infrastructure that works for how businesses actually operate,” said Mr Tosin Eniolorunda, Moniepoint’s founder and chief executive, pointing to the prevalence of informal trade in Africa’s largest economy.
In 2025, Moniepoint became a unicorn after it raised more than $200 million in a Series C funding round backed by investors including Development Partners International, Google’s Africa Investment Fund, Visa, the International Finance Corporation and Verod Capital, providing capital to scale its payments and financial services operations.
Beyond acquiring, the company said its switching and processing subsidiary, TeamApt Ltd, secured licences from Mastercard and Visa to operate as a processor and acquirer, enabling it to handle international card payments and provide switching services to other businesses across Africa. Its web payments gateway, Monnify, processed N25 trillion in transactions during the year.
Recently, the Central Bank of Nigeria (CBN) upgraded Moniepoint’s microfinance bank to a national microfinance bank licence, allowing it to expand its footprint across the country and broaden the range of products that it can offer.
By Aduragbemi Omiyale
A $250 million financing facility to support the acquisition of about 40 per cent equity in ND Western Limited from Petrolin Trading Limited has been secured by Aradel Energy Limited, a wholly owned subsidiary of Aradel Holdings Plc.
The funding package was facility for the energy firm by Standard Bank, which comprises Stanbic IBTC Capital Limited, Stanbic IBTC Bank Limited, and the Standard Bank of South Africa Limited.
The facility, Business Post gathered, was structured to support Aradel Energy’s strategic growth agenda, the refinancing of existing loan facilities, and the funding of increased production from the company’s existing asset base.
Aradel Energy is the operator of the Ogbele and Omerelu onshore marginal fields, as well as OPL 227 in shallow water terrain.
Prior to the transaction, Aradel Energy held a 41.67 per cent equity interest in ND Western, and following the completion of the acquisition, its shareholding in ND Western has increased to 81.67 per cent.
ND Western holds a 45 per cent participating interest in OML 34 and a 50 per cent equity interest in Renaissance Africa Energy Company Limited, the operator of the Renaissance Joint Venture and a 30 per cent owner of one of Nigeria’s largest and most strategic energy portfolios.
As a result of the transaction, Aradel Energy’s indirect equity interest in Renaissance has increased to 53.3 per cent, significantly strengthening the company’s upstream position and long-term value creation potential.
Standard Bank acted as Global Coordinator and Bookrunner, leading the structuring, execution, and funding of the facility, affirming its deep sectoral expertise and reinforces its position as a leading financier in Africa’s energy industry.
This transaction reinforces Standard Bank Group’s commitment to providing strategic capital to clients as they execute on their transformative growth objectives.
By delivering tailored financing solutions that enable sustainable value creation, the Bank remains a trusted partner to leading corporations across Africa’s evolving energy landscape.
“As Aradel Energy consolidates its position as one of Nigeria’s leading oil and gas companies, Stanbic IBTC Bank is proud to serve as a trusted long-term partner supporting the company’s growth ambitions,” the Executive Director for Corporate and Transaction Banking at Stanbic IBTC Bank, Mr Eric Fajemisin, stated.
Also commenting, the Regional Head of Energy and Infrastructure Finance for West Africa at Standard Bank, Mr Cody Aduloju, said, “The transaction illustrates Standard Bank’s ability to deliver large-scale, tailored funding solutions and further demonstrates our support to the fast-growing indigenous companies of Nigeria’s oil and gas sector.”
The chief executive of Aradel Holdings, Mr Adegbite Falade, said, “The acquisition bolsters Aradel Energy’s competitive positioning across Nigeria’s oil and gas value chain and supports our commitment to strategic growth, asset optimisation, and enduring value creation. We are pleased to have partnered with Standard Bank, who supported us and delivered a fully funded solution under very tight timelines.”
By Modupe Gbadeyanka
The operating licences of major financial technology (fintech) platforms like OPay and Moniepoint, have been upgraded to national by the Central Bank of Nigeria (CBN).
Also upgraded by the banking sector regulator were PalmPay, Kuda Bank, and Paga after compliance with some regulatory requirements, allowing them to operate across Nigeria.
Speaking at annual conference of the Committee of Heads of Banks’ Operations in Lagos recently, the Director of the Other Financial Institutions Supervision Department of the CBN, Mr Yemi Solaja, said the licences were upwardly reviewed after the financial institutions met some requirements, including the Know-Your-Customer (KYC) policy.
“Institutions like Moniepoint MFB, Opay, Kuda Bank, and others have now been upgraded. In practice, their operations are already nationwide,” he said at the event.
The upgrade also reinforces financial inclusion, as fintechs and agent networks continue to play a pivotal role in providing access to banking and payments services, especially in rural and underserved areas.
The central bank executive stressed the importance of physical presence for customer support.
According to him, “Most of their customers operate in the informal sector. They need a clear point of contact if any issues arise,” to strengthen internal controls, and enhance customer service, particularly around KYC and anti-money laundering (AML) processes.
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