In today’s fast-paced world of technology, financial institutions are not left out. Financial technologies are springing up at a rapid pace, and one of them is Opay.
Opay is a leading fintech company that offers a wide range of financial services through its innovative super app. The pertinent question – what is a super app?
A super app is an app that performs lot of other functions usually unrelated. These applications are an ecosystem on their own and usually include a platform where third-party developers can create apps for their ecosystem.
A good example of this is the Chinese WeChat. Its basic function is sending messages, but it can also be used to order food, order taxis and book plane tickets. This is because the app allows third-party companies to create apps within WeChat.
This also applies to Opay. With plans to build a super app in the Nigerian ecosystem; the original iteration of the app had features such as ride-hailing, food delivery, payments, etc.
So what is its mission as a fintech company in Nigeria?
Opay’s mission is to promote financial inclusion and make opportunities accessible to everyone. It is also committed to leveraging technology to enable shared prosperity and provide essential financial services to individuals, particularly those who are unbanked or underbanked in Africa.
The company seeks to bring the underserved and excluded Nigerian population into the spectrum of the formal financial system, thereby connecting them to bigger life opportunities through its financial rails.
Here are some interesting facts about Opay that some don’t know;
- Opay is an African setup: Opay is an African company that has its headquarters in Ikeja Lagos, Nigeria. The company was founded on August 1st, 2018, and the legal name of the company is Opay Digital service limited. It also goes by the name Operapay.
- Opay is Chinese-backed and Africa-focused: Opay is a fintech platform focused on meeting the needs of the people of Africa with fintech payment solutions. The Chinese, however, back it in terms of venture capital and other funding. It has also made a big impression on the international scene. Big businesses from all around the world are interested in Opay; it is viewed as an investment option. It has created a buzz in international business circles, from Chinese investors to Norwegian-based owners.
- Opay continues to add to its diverse line of services: Opera is moving Opay in many different directions to bring in more consumers for the company because, the app has been the most successful venture so far. This is because Nigeria and other African countries required a better and diverse way to use technology for moving money around and making payments which Opay provided. It has then become a staple for users who enjoy the convenience of sending and receiving, making payments, buying groceries, etc.
So, having known what Opay is, its mission, and some interesting facts about the fintech company, one would ask, how does this start-up make its money for the day-to-day running of the company?
Glad you asked…
Opay is a multi-faceted business that, like other financial technology (Fintech) companies, generates money from various services it offers. Here is a comprehensive analysis of how Opay makes its money:
- Payment
- Transactional fees
- Loan
- Savings and Investment
- Merchant Services
Payment:
This is Opay’s core revenue generator because payment is a big business in Nigeria. Several fintech companies are springing up in the race to financial inclusion. Also, commercial banks have joined in as well to get the unbanked a bank account. Opay today now bring in $1 billion in monthly transactions and has over 20 million active users. It also gives access to over 2000 billers such as:
- Betting platforms
- Government Bills
- Utilities.
- Payment for products and services
- Hotel booking.
Transactional fees:
Opay charges transactional fees on various financial transactions processed through its platform. This includes payments, fund transfers and other financial services.
Loans:
Opay offers loans through OKash on its mobile app. These loans are mainly short-term payday loans that are available to salary earners as a support for their finances. The interest on these loans is high-12% a month or 0.4% per day.
Also, the CreditMe product offers you the ability to make purchases in the app when you don’t have the funds at the moment. You then get a seven-day interest-free loan from CreditMe within minutes and make purchases or transfers to any account.
Savings and Investment:
The fintech platform also provides savings and investment options which provide the company with operating cash. Also, it earns revenue from the management fees and interest on these savings and investments.
Merchant Services:
As a multi-faceted business, Opay has a network of agents who facilitate financial transactions such as deposits, withdrawals and bill payments.
In the space of five years, the fintech company has come a long way. It has numerous successes and big achievements, but it has had its fair share of challenges and competition. Some of them include:
- Ride-hailing and food delivery services suspension.
- Initial inefficient cost structures.
- Competitions.
- Regulatory challenges.
Conclusion
Despite these setbacks, Opay has managed to grow and adjust its business model to remain competitive in the market. By focusing on its strengths such as payment services, loans, and transactional services, the company has continued to expand and serve its millions of users in Nigeria and beyond.
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