Hello,
This week we are talking about payments. A payment is basically an action that entails the transfer of money or any medium of value, in satisfaction for goods or services.
For payments to work, there has to be infrastructure that enables the money to move from one bank account or wallet to the other. In Nigeria this infrastructure is called the Central Switch-- this is what enables the payments you make daily. The Central Switch is controlled by the Nigeria Inter-Bank Settlement System (NIBSS)-- their job is to ensure the transfers you make are as seamless as possible.
Besides the Central Switch, there are the banks and FinTech’s that help you get your money through the Central Switch to facilitate your payment. Essentially, helping you get your money from point A to Point B.
This has proved to be a valuable business in the FinTech space. The best examples on the continent are Paystack and Flutterwave . Paystack was acquired by Stripe for $200 Million. Flutterwave, on the other hand, completed its $170 Million Series C funding round to become a Unicorn.
In English, Stripe bought Paystack and Flutterwave is now worth $1 Billion.
These payment businesses make money through transaction fees they charge for helping you collect and make payments.
In this ecosystem, you (the customer) are the person who pays the piper, the question is how do you choose a good payments option?
I recommend using this checklist.
1. Minimal or no transaction costs.
2. Excellent design (you like how the app looks)
3. Great user experience (you don’t have to stress yourself to make a payment).
If no app comes to your mind, let me introduce you to Barter by Flutterwave, this is an excellent example of what payments should feel and look like-- with virtual account numbers provided by Wema Bank, and zero transfer charges, you can:
- Make unlimited transfer without charges.
- Enable recurring payments monthly.
- Create a virtual dollar card and shop online.
This was designed by @jiggyboyjre on
Twitter
.
In other news, abeg you should sign up on Abeg. Abeg is a social payments application that’s really hot right now. The startup is the headline sponsor of Big Brother Nigeria: Shine your eye, and Word on the Street is that it costs $2 Million to be a headline sponsor. There are also a number of giveaways happening daily on the app, so I recommend not sleeping on it.
In our last newsletter we talked about savings and why you should not save in Naira. Not too long after that the Central Bank stopped selling dollars to Bureau De Change Operators. This regulatory action is increasing the demand for dollars, and in distant time this demand would rapidly increase the exchange rate.
This is the best time to sign up and fund a RiseVest plan.
It is important that you only keep the money you need in Naira. The money left in Naira should also be put through a convenient and easy-to-use payment app. Free yourself from the bondage of glitchy bank apps that leave you stranded on a Sunday afternoon with no food.
Choose ease!
In our next letter we will be talking about investments, in the meantime please share our newsletter to your friends by clicking the share button.
Would you please follow us on Twitter?
Feel free to email ezekenechukwu.mike@gmail.com if you think the newsletter should be shorter or longer.
In every letter I will share either what I am reading or what I am listening to.
This week I have been listening to:
1. Business Wars:
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2. Not Boring:
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3. Invest In The Future:
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Kind Regards,
Kenechukwu Eze (Co-Founder, Ivory Finance)
Not gonna lie, if you continue like this. Ima start paying my school fees to you.
I love it.. so educating