May 26, 2022

According to Statista, the number of payment terminals in Nigeria increased from 150,000 in 2017 to 543,000 in April 2021. that period, the number POS payment increased in the country hugeWith a turnover of more than 500 billion by May 2021.I

POS terminals in Nigeria used to For processing card payments at points of sale and also for agent banking, a branchless banking system in which agents behave like human ATMs.And although the terminals have different providers (banks and fintech) and functions, First of all work with you onlineSome of them also have offline capabilities.

Lagos-Helsinki-based ZeroPay, one such provider, has raised a $11.4 million Series A round led by Lagos-based venture capital firm Zrosk Investment Management. Existing investor Nordic Venture Fund Ventures has returned with participation from other private and institutional funds such as Fedha Capital and Exotics Advisory.

individual investors such as Petri Kivinen, former director of Deutsche Bank, Morgan Stanley and Renaissance Capital; Abiodun Ajay, Director of Bank of America, Sub-Saharan Africa; Also present was Jonas Dromberg, former Bloomberg bureau chief.

this new capital be deployed The company said that in order to expand its payment infrastructure, accelerate growth and increase its team.

In 2014, when we introduced the company, IroFit (the parent company of ZirooPay) claimed that it was an “offline” technology, a small business mobile application and a way to accept card payments through EMV-certified card readers. platform for – used in areas where there is no data coverage, especially in emerging markets.

CEO Omnia Olawale, who was based entirely in Helsinki at the time, said the money had been raised ($600,000 in seeds). Begin Launch in Nigeria. Though, only five years later the company completed a launch in Lagos. And in a recent conversation with gaming-updates, Olawale said the slowdown was because his company, which had raised an additional $2 million, was improving its technology and adding new features.

This area remains unchanged, and after three years of use, ZeroPay has evolved. hugeaccording to the company 15,000 merchants use POS terminals and mobile applicationsI These traders processed $500 million — a 5,000% increase over three years — in 10 million trades, the company continued.I

One of the biggest problems with mass adoption of card payments at merchants is the number of failed transactions due to poor internet connectivity. “This helped us develop our proprietary technology that allows us to process these events in real time without an internet connection,” Olavale says of his decision to first take ZeroPay offline.

“So the product was built around that big problem; That being said, we can recognize that we provide a 95% success rate compared to less than 50% you can find on the market.”

The next big issue for POS terminals is functionality, which means they can provide other functionality besides payment processing. Any interaction between retailers and agents with customers represents data mining for payment processors and merchants. But since payment terminals practically do not have the ability to account, then what? It often happens that traders management Tune into your books daily or rely on platforms like Khatabook like Kippa to digitize your processes.

But ZeroPay is telling merchants using its platform not to look elsewhere. Olawale said the mobile app will enable small businesses in retail, banking, hospitality and service industries to perform similar tasks such as tracking sales and managing business activities.

“Think of all the cash registers in big supermarkets can do; With an Android app and mobile point-of-sale card reader, we are bringing similar functionality to small businesses,” he said.

“We’ve seen over 70% of our users move from paper-based to in-app sales within three months of onboarding.”

Growth funding will help ZeroPay expand its product portfolio to include: as good as Payment channels and options to create a ubiquitous system for merchants. and if POS terminal providers in Nigeria, especially fintech companies, are increasingly targeting banking agencies – a huge fintech segment that is actively driving access to financial services – ZeroPay sees the potential to dominate the open retail space.I

“No major company has come up with cutting-edge technology trying to tap into this space, and it’s an area where we see an opportunity as we explore it.” First of all Retail payment platform. While we also offer agency services, our focus is on retail, which sets us apart from other players,” the CEO said.

Samson Azemud, director and chief investment officer of Zosk, said of the investment: “The growth of the online economy on the African continent is impressive; ThoughThere is an order from the offline economy volume More than an online economy.

“Zeropay has a patented technological advantage (works without an Internet connection) and distribution model, significant The ability to digitize the offline economy down to a unit price makes this story especially compelling. The payments space has become well-equipped and competitive, but the gaps we see in cash digitization are optimistic about the prospects for this investment.

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