EBANX, a payments fintech unicorn based in Brazil, is set to debut in Africa, venturing beyond Latin America for the first time.
The fintech considers Africa to be a booming digital payments and digital market in the 2020s and seeks to tap this opportunity with the move.
EBANX’s payment solutions are now available in South Africa, Kenya, and Nigeria.
A June 2022 report, jointly presented by Endeavor and McKinsey & Company, stated that the size of Africa’s digital economy is $115bn.
The driving factors cited included the presence of a young and tech-savvy population, effect of the Covid-19 pandemic, along with growing digital penetration.
EBANX president of global payments Paula Bellizia said: “Africa is now bursting with growth potential. Digital adoption and consumption of online goods and services have accelerated rapidly within its countries, and investment capital has been pouring into the region.
“After studying the region and building a deep understanding of its local players, entities, and challenges, we are diving into Africa to provide local payments solutions that will help build the digital economy at a rapid pace, drive broader financial inclusion for its population, and provide greater access to a variety of goods and services from global merchants interested in building their market share there.”
By expanding its operations to Africa, EBANX plans to incorporate its solutions with local payment methods in the continent.
In South Africa, the firm seeks to integrate with Instant EFT by OZOW, which provides online consumers with access to internet banking to make an electronic funds transfer (EFT) that gets verified immediately.
Similarly, in Kenya, EBANX looks to leverage mobile banking service provider M-Pesa, which enables users to store and send money as well as perform online transactions through their mobile phones.
EBANX intends to integrate with USSD, a session-based protocol that helps consumers with their e-commerce payments, in Nigeria.
In April this year, EBANX announced a partnership with payments firm Gr4vy to help merchants avail local payment methods in new markets.