With the fast pace at which fintech companies are growing in Nigeria, is there any way small businesses can benefit from this trend?
One of the fundamental problems startups and small businesses in Nigeria face is integrating an easy and swift payment portal on their business website, especially those with customers based outside Nigeria.
When I started my freelancing career some four years ago, I could remember I found it difficult to get payment from clients outside Nigeria. My surest bet then was Payoneer. Unfortunately, most of my clients don’t use it because, according to Payoneer terms, they also must have earned a particular amount of money from freelancing themselves. How frustrating?
Bitcoin also used to be another alternative; however, not all clients were comfortable with it, especially those who always form corporate. And Nigerian PayPal will not send money out.
So, what exactly is its use?
Suppose a freelancer who can easily communicate with his client can face this issue. How pathetic do you think it will be for a small business owner with an eCommerce platform where most of their transactions should be done on the website without any need for chitchatting?
Bless goodness with the emergence of several Fintech companies in Nigeria. Small business owners can now get paid for their goods and services without any stress. And the recent acquisition of PayStack by Stripe makes it even more exciting.
Ways Small Business Owners can profit from Fintech companies in Nigeria
Simple online payments integration
Easy online payment solutions are the keys to run a successful business anywhere in the world. My friend used to ask me then, “what is the essence of doing business when you can’t map out how you will get paid?” These financial tech companies have proven to be very reliable in creating an easy online payment portal for businesses at no cost. Flutterwave, Paystack, Remita, and several others make it easy for people to pay directly within your website within just a few clicks. And the good news is these payment portables are superfast.
Multiple payment options
Creating multiple payment options for your customers and clients is another way a small business can cash out clients’ money without giving them the excuse to walk out of them.
Remita offers over ten payment options, including Debit/Credit Cards, Internet Banking, Bank Branch, USSD, Remita App, and Mobile Wallets. Remember, we are already in an era where you can’t restrict your customers to a single payment option. They will probably leave you and go to someone else. Using these Fintech companies broaden their options and make it easy for shoppers to shop without bank discrimination.
International payment feature
No successful business owner will want to relegate his or her business to only the Nigerian market. Especially with the current state of the Nigeria Naira. There are dollars to cash out there, and these Fintech companies can help you achieve this at a low cost.
Paystack charges just 3.9% + NGN 100 for international transactions. That is amazingly cheap!
Adequate financial operations and support are the bedrock of every successful business. While many big companies can create enough budget to hire professional accountants to manage their financial transactions, small business, on the other hand, will likely put their account balance to check. With these fintech companies’ help, small business owners might not have to bother about their daily accounting transactions. These fintech companies help you with your company bookkeeping, daily records of the monetary transaction through them, send out invoices to your customers, and monthly update your income and expenses. What could be more interesting than that?
Easy money-saving and banking
Money management is a critical aspect of a business. I remember I used to tell my friend I can’t go into physical businesses because of the stress of managing money. And the sad news is “it does not matter how careful one is; one will still lose money”. But with the emergence of the Fintech companies, you don’t have to bother about your money’s security as your money is in the bank with them automatically.
Business insights & management engagement
Another worthy reason why a small business owner should take advantage of these financial technology companies is they provide business insights and management tips to boost your business performance. PayStack, Remitta, Paga, and several others give you comprehensive reporting and updates of your monthly income and expenses. Some of them also send you tips on how you boost your businesses. Flutterwave goes to the length of creating an option for you to help your workers manage their money too.
Quick access to loans
Most small business in Nigeria survives on loan. And getting loans from traditional banks are as cumbersome as they come. However, with these Fintech companies’ emergence, small businesses can quickly get quick loans to support their businesses. Financial technology companies like QuickCheck and Lidya offer a short-term loan with a very minimal interest rate and flexible terms. These loans can go a long way to support a startup company and help them boost their businesses.
Subscribe to our YouTube channel for more tips on business management and insights in Nigeria
Better shopping experience for customers
Creating a pleasant shopping experience should be one of every business’s ultimate goals, and using some of these Fintech companies helps you achieve this easily. They handle all the payments and transactions between you and the customers. They help you with an automated invoice and other essential documents customers need to complete their transactions.
The emergence of FinTech companies in Nigeria has opened a big door for small businesses and startups in Nigeria. It is only imperative that business owners take action and use these features to support themselves and expand their business.
Join insight’s whatsapp community to get updates on new content on similar topics and have conversations around them.