Ending the Year Strong. Thanks Muyiwa. Please i wanted to ask if in the new year you could do us a favour and explain how this fintechs such as Opay / Moneypoint actually earn money and be profitable. Or are they still being subsidized by Tencent, and their Chinese Holding Company and playing at a bigger goal in mind? Just curious on how our own Normal Nigerian Banks can then compete
OPay is one place to start. So OPay primarily makes money from transaction fees (their loans are offered through a third party so they definitely also make some money from that as well).
The problem with making money from transaction fees is that you need a TON of transactions for it to even be worth your while because your take on every transaction is super marginal. OPay has millions of retail customers (and a lot more POS agents and enterprise customers) so you can see how this works.
Moniepoint is similar but also has one important addition: it offers loans to small and medium businesses. And from what I've seen, their lending business is also pretty sizeable.
They've both amassed so many customers that any new entrant looking to challenge them will have their work cut out.
Ending the Year Strong. Thanks Muyiwa. Please i wanted to ask if in the new year you could do us a favour and explain how this fintechs such as Opay / Moneypoint actually earn money and be profitable. Or are they still being subsidized by Tencent, and their Chinese Holding Company and playing at a bigger goal in mind? Just curious on how our own Normal Nigerian Banks can then compete
OPay is one place to start. So OPay primarily makes money from transaction fees (their loans are offered through a third party so they definitely also make some money from that as well).
The problem with making money from transaction fees is that you need a TON of transactions for it to even be worth your while because your take on every transaction is super marginal. OPay has millions of retail customers (and a lot more POS agents and enterprise customers) so you can see how this works.
Moniepoint is similar but also has one important addition: it offers loans to small and medium businesses. And from what I've seen, their lending business is also pretty sizeable.
They've both amassed so many customers that any new entrant looking to challenge them will have their work cut out.
Thanks so much Muyiwa. Understood it now. It's Volume, Scale and Loans. Appreciate it.
But Zap is “expensive” and “premium” with their pricing structure. Something Opay and Moniepoint can compete on
And now that they’ve moved settlement banks how can they guarantee the speed Opay and Moniepoint promise?