The mytalu team is incredibly bullish when it comes to the outlook for fintech in Africa and we believe our product offerings are best placed to contribute to the growing appetite for innovative solutions. From our multi-currency account and virtual cards to our best-in-class fintech-as-a-service APIs, we are excited to be part of the levelling up of fintech in Africa but don’t just take our word for it. Below, we have collated some of the exciting data that show just how much of an impact fintech has made and is going to make going forward. It is truly an exciting time to be in the fintech space in Africa.
Payments
Electronic payments in Africa are on a meteoric rise. Data collected by the internationally renowned consultant McKinsey1 suggests that the market is expected to grow 152% from 2020 to 2025. There are currently $14 billion of intra-African remittances, and this is expected to grow exponentially as modern payment rails enable faster and cheaper cross-border payments.
Mytalu aims to be right at the forefront by offering multicurrency accounts that support cross-border payments, we want to tap into the need for international payments as a new emerging “Global African” takes centre stage.
Increased cross-border trade, migration and macroeconomic collaboration between African governments will further contribute to the increased desire for a consumer experience that helps connect individuals to global payments or as we like to call it at mytalu – “an all-access pass to the globe”
FinTech as a Service
Embedded finance and Fintech-as-a-service are the next big thing – currently, it is growing at 43% per year. Analysis from Lightyear Capital2 predicts that revenue from embedded finance will grow to nearly $230 billion by 2025, up from $22.5 billion in 2020.
Embedded finance refers to the ability for businesses to embed powerful financial services into their applications to provide new and innovative use cases by leveraging third-party infrastructure. It is an exciting new SaaS model that is picking up spend in Africa. Mytalu is tapping into this space by providing a fully complaint fintech-as-a-service solution allowing businesses to programmatically build and scale wallet-based fintech solutions for their own unique needs and end-user use cases.
Business
Businesses are going from strength to strength. Last year, Bloomberg3 reported that funding for African start-ups more than doubled in the first half of the year. The CEO of Investec4 added, “If Africa can effectively grow at around 6% for the next 40 years, this growth will create roughly $23 trillion in opportunities, which computes to about $600 billion a year”.
Mytalu has an ambitious outlook for the business payments space. We have a very exciting roadmap going forward about what can be achieved. Watch this space!
And last but not least, please do get in touch with us if you are keen to learn more about any of our products or are keen to just have a chat about the future of fintech in Africa.
Sources
- https://www.mckinsey.com/industries/financial-services/our-insights/the-future-of-payments-in-africa
- https://www.forbes.com/sites/ronshevlin/2020/08/03/ubers-departure-from-financial-services-a-speed-bump-on-the-path-to-embedded-finance/?sh=3979938b7673
- https://www.bloomberg.com/news/articles/2022-08-03/africa-defies-global-trend-with-funding-for-startups-surging?leadSource=uverify%20wall
- https://www.investec.com/en_za/focus/innovation/supporting-africas-startup-ecosystem-goes-beyond-funding.html
