Kuda, recognized as Nigeria's pioneering neobank in the fintech sphere, has expanded its reach by entering the merchant-acquiring sector through the launch of Kuda POS terminals. This strategic move signals a notable development in Nigeria's digital payment landscape, intensifying competition within the merchant-acquiring domain.
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| Image Credit: Kuda |
Kuda, recognized as Nigeria's pioneering neobank in the fintech sphere, has expanded its reach by entering the merchant-acquiring sector through the launch of Kuda POS terminals. This strategic move signals a notable development in Nigeria's digital payment landscape, intensifying competition within the merchant-acquiring domain.
The ongoing evolution of digital payments in Nigeria positions merchant acquiring as a burgeoning industry, anticipated to become a billion-dollar opportunity in the coming years, according to McKinsey. This follows an estimated revenue of USD 200 million in 2021.
Merchant acquiring involves facilitating non-cash transactions between buyers and sellers. While online merchant acquiring experiences growth, offline transactions at physical storefronts still dominate, constituting 95% of Nigeria's digital transaction value.
The successful pilot and introduction of Kuda POS terminals, as disclosed in a New Year message by Co-Founder/CEO Babs Ogundeyi, align with the broader trend of heightened interest and competition in Nigeria's merchant-acquiring sector. The launch of tailored POS terminals for businesses reflects the evolving market demands and underscores the neobank's capability to explore new avenues of growth.
Kuda, backed by Target Global, has significantly impacted the digital personal banking landscape, amassing 7 million customers and processing NGN 55.8 trillion in transactions since its inception in 2019. With a focus extending to businesses in recent years, this move into the merchant-acquiring space further solidifies Kuda's position as a multifaceted player in Nigeria's financial technology sector.
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