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As Nigeria’s fintech sector continues to reshape the financial landscape, GTCO’s fintech subsidiary, HabariPay, is positioning itself as a key player by expanding its digital payment solutions and securing new licences to enhance its service offerings.
Since its pivot to fintech in 2022, HabariPay has been competing against well-established firms like Paystack, Flutterwave, Moniepoint, and OPay. Despite the intense competition, the subsidiary contributed ₦4.926 billion ($3.2 million) in profits to GTCO between 2022 and H1 2024, reflecting its growing presence in the market.
However, with a profit after tax of ₦1.7 billion ($1.1 million) in H1 2024, accounting for just 0.17% of GTCO’s total profit before tax, CEO Eduofon Japhet acknowledges the need for further expansion. The company has acquired multiple payments and switching licences to scale its operations, particularly focusing on improving mobile transfers and merchant POS services.
A New Approach to Payments Infrastructure
In an exclusive interview, Eduofon Japhet shared insights into HabariPay’s strategic direction, emphasizing its commitment to building local payment infrastructure rather than following the traditional POS-terminal-heavy approach taken by competitors.
“We wanted to focus on building local infrastructure that could support micro-payments. Many existing solutions were designed for large enterprises, leaving gaps in financial inclusion. We launched an NFC-based POS solution that allows users to turn their phones into payment terminals and built a switch that enables cost-effective processing of low-ticket transactions.”
Unlike competitors who heavily rely on agency banking and widespread POS terminal distribution, HabariPay has prioritized innovation by developing payment rails that cater to underserved markets.
“We saw that Moniepoint and OPay had already saturated the market with low-cost POS terminals. Rather than add millions more, we sought a niche where we could dominate and provide real value.”
Driving Financial Inclusion with New Regulatory Licences
To bridge the financial inclusion gap, HabariPay acquired two critical licences from the Central Bank of Nigeria (CBN):
- Switching and Processing Licence – enabling seamless transaction processing across banks and fintechs.
- Value Added Service Licence (from the Nigerian Communications Commission) – allowing for integration of alternative connectivity options like USSD and internet-based payments.
With 12 to 13 banks and major fintech players already connected to its infrastructure, HabariPay aims to tackle challenges in the low-income segment, where expensive card transactions often hinder digital adoption.
Japhet emphasizes that financial inclusion cannot exist without economic inclusion, stating:
“People don’t avoid digital payments because they don’t want to use them; often, they simply don’t have the money. Sustainable financial inclusion must create economic value. Agency banking helped by creating new revenue streams. We are now looking at models that digitize key sectors—such as agriculture—so that more people can be connected to the financial grid.”
Expanding Payment Solutions: The Future is Transfers
Looking ahead, HabariPay is set to expand its payment services with its new umbrella licence from CBN, which includes:
- Payment Solution Service Provider (PSSP) licence
- Payment Terminal Service Provider (PTSP) licence
- Super Agent licence
- Switching and Processing capabilities
While the company has so far focused on switching and processing, it recently launched POS terminal services under the PTSP licence, marking a new business line aimed at merchant payments.
Japhet sees bank transfers as the future of digital payments in Africa, stating:
“Transfers will always be the future of the continent. We want to make them feel as seamless as card payments—instant, traceable, and with the ability to process refunds. If we achieve that, we may even reduce the need for agents.”
With its expanding licences, innovative payment solutions, and focus on infrastructure, HabariPay is poised to redefine Nigeria’s digital payments landscape, making financial transactions more accessible, cost-effective, and scalable.
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