Moniepoint’s Eniolorunda unpacks latest digital payment trends in Africa

The world of finance and technology have converged in a powerful way, giving rise to the fintech industry that is revolutionizing the traditional banking sector. In Africa, the potential for fintech companies has become more than just a reality, especially amidst global and political uncertainties. Tosin Eniolorunda, the Founder and CEO of Moniepoint, sat down with CNBC Africa to share insights on the development and trends in the digital payment landscape across the continent. Eniolorunda emphasized that fintech has been driving innovation, disrupting markets, and reshaping the way businesses and consumers interact with financial solutions. Fintech companies are leveraging technology to provide financial services, leading to optimizations and improvements in operations. One of the most significant transformations brought by fintech is the shift from cash payments to digital transactions. This shift has opened up new avenues for businesses to accept payments and conduct trade more efficiently. Eniolorunda pointed out that fintech companies have been at the forefront of this digital revolution, with markets rewarding their innovative solutions with traction and growth. One key factor that sets fintechs apart from traditional banks is their focus on product innovation and technology. Fintech entrepreneurs prioritize creating customer-centric products that enhance the digital trading experience for businesses and consumers. Additionally, the funding model for fintech companies, primarily backed by venture capital, allows them the flexibility to delay short-term profits and focus on long-term growth. Unlike traditional banks, fintechs are not pressured by shareholders to declare immediate dividends, enabling them to experiment with various commercial models and pricing strategies to drive adoption. Regulatory frameworks in many countries have also played a crucial role in fostering the growth of fintech companies. Special licenses and regulatory support have empowered agile and innovative fintech startups to thrive in the competitive financial landscape. Despite the recent drop in global investment trends over the last 24 months, Eniolorunda remains optimistic about the future of fintechs. While fintechs have experienced a decline in valuations, there is a renewed investor appetite for sustainable growth and positive unit economics. Eniolorunda acknowledged that fintechs have faced challenges in securing funding and maintaining valuations in the face of market volatility. However, he believes that the industry's focus on building sustainable business models and achieving profitability in the long run will drive future success. Investors are showing a willingness to back fintech companies that demonstrate sustainable growth potential and positive unit economics. The landscape of fintech in Africa is evolving, with opportunities for agile and innovative companies to continue driving financial inclusion and digital transformation across the continent.