Moniepoint: Nigeria's Largest Non-Bank Mobile Money Platform

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Nigeria’s mobile money ecosystem has grown rapidly in the past few years. From just six operators offering mobile money services in 2014, the industry now has more than 40 players operating almost 50 different mobile money services under various brand names and sub-brands. Whether you are talking about bank-led mobile money services such as MCash, or non-bank providers like InVite and Dada Money – the Nigerian market is now home to a wide range of mobile money solutions. While this diversity is positive for encouraging competition, it also makes it challenging for businesses to stand out from the pack. That said, there are some companies that have managed to do so by carving out niche areas within the industry. One such company that stands out from its competitors is Moniepoint - Nigeria’s largest non-bank mobile money platform.

 

What is Moniepoint?

Moniepoint is a mobile money platform that allows businesses to accept mobile money as a method of payment. It provides merchants with a point-of-sale device that is used to process customer transactions. The device is linked to the business’s account on the Moniepoint platform, allowing customers to pay using their mobile money wallet. The platform also offers merchants a mobile app for accepting and managing payment transactions. Merchants are charged a fee for every transaction made. To use the service, customers can transfer funds from their mobile money account to the merchant’s account on the Moniepoint platform. They can then use the funds to make purchases at the merchant’s store. The platform can process one-time payments, or be set up to receive recurring payments.

 

How Does Moniepoint Work?

When customers want to pay using Moniepoint, they transfer funds from their mobile money account to the merchant’s account on the platform. They can either do this manually or by selecting the “pay” option when making a transaction. They then present the merchant with a unique QR code that includes information about the transaction. The merchant scans the QR code with a device connected to their POS (point-of-sale) terminal to finalize the payment.

 

Why has Moniepoint been successful?

In order to understand why Moniepoint has been successful, it is important to understand its target market. The mobile money industry is dominated by large banks and non-banks, who have attracted most of the low-to-middle income segment (LMIS) users. There is a clear need, then, for a platform that targets businesses that are looking to accept mobile money as a payment method. Such businesses are typically small and medium-sized, and are thus not likely to attract the attention of large banks. Moniepoint is thus likely to have found success because it is appealing to a specific segment of the market.

 

Challenges for Non-Bank Providers in Nigeria

Non-bank providers currently face three main challenges in Nigeria. The first is that they are required to pay a security deposit of N100 million ($400,000) to the Central Bank of Nigeria (CBN) as a safety net against potential losses. This puts non-bank providers at a significant disadvantage to banks, which are not required to pay a security deposit. However, it is worth noting that this requirement is currently being reviewed. The second challenge for non-bank providers is that they have to secure the required regulatory licenses for each of the states where they operate. This means that non-bank providers must first prove their worth to the CBN before being awarded a license. The third challenge is that non-bank providers typically charge higher transaction fees than banks.

 

Final Words

As Nigeria’s mobile money ecosystem continues to mature, it is likely that more non-bank providers will emerge to compete with banks. This will be an exciting development, as it will create more competition within the industry and therefore offer consumers more options. It will also be interesting to see if any of the current non-bank providers are able to displace banks as the top provider in the country.