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How RemX Is Solving Payment Processes in Africa

Nehikhare Eghosa is the General Manager of the VigiPay (Payments and Remittances) section of Venture Garden Group (VGG). VGG is a leading provider of information technology, data automation, and payment technologies. VGG reacts to the problems of emerging economies by deploying tried-and-true technology to increase operational efficiency, reduce leakages, and offer outstanding returns. The company has incubated companies from many industries including education, logistics, financial services, energy, health, transportation, cleaning and laundering services, education and more. Furthermore, it has received support from the IFC, CDC, and FMO, as well as funding from Convergence Partners. The Group was co-founded by three FinTech tycoons, Demola Idowu, Olufemi Olukunmi Demuren, and Olubunmi Akinyemiju. These Nigerian FinTech tycoons are also major shareholders and investment partners of Nehikhare Eghosa’s RemX Capital Ltd, Multigate Ltd, OIT Africa and Avalon Offshore Logistics. VGG has subsidiaries in the aviation, education, energy, and power sectors. Eghosa can be categorized as one of the leading voices in the financial technology industry.

Evidence shows the payments industry has never been more diverse or exciting as it is now. The general market and its activities have experienced a drastic shift away from traditional conventions due to exponential growth in activity in this area. Due to technological advancements that have opened the market to everyone, banks are no longer the only key financial players of the payments processing industry.

Customer demand and financial institution requirements both contribute to the issues that arise as a result of this technology revolution. Is this next generation of technology absolutely necessary? Today’s developed market is saturated with innovation, offering more convenience, faster payments, and greater mobility than ever before, creating a highly competitive atmosphere full of start-ups vying for dominance over brick-and-mortar institutions, with varied degrees of success and failure.

How we pay for products and services has changed dramatically since the first human commercial transaction almost  221,000 years ago.

Over time, the world and governments have shifted from bartering to employing digital currency. This development in the payment sector was prompted by a need. The availability and divisibility of items constrained the availability and divisibility of the bartering system, necessitating the transition to much smaller and readily divisible alternatives.

Despite development, the question, “What is the future of payment?” remains unanswered.

More organizations will play a powerful role in the payment sector as the move from direct to embedded finance occurs. The use of financial instruments or services, such as lending or payment processing, by a non-financial provider, such as an FMCG firm giving credit to its wholesalers, is referred to as embedded finance.

It’s crucial to keep an eye on the emergence of neo-banks, which start off providing payment services before branching out into other financial services. Blockchain and cryptocurrency are important areas to keep an eye on.

There may be a surge in demand for seamless end-to-end payment solutions from African clients. The Nigerian e-commerce sector, for instance, is expected to be worth over $25.6bn by the end of 2022 as a result of growing e-commerce expenditure. This would motivate businesses and payment service providers to create payment solutions that address the pain points of African consumers.

In Africa, financial inclusion has gradually increased over the previous five years, more than doubling from roughly 30% in 2011 to 60% by 2020. This increase in financial inclusion will stimulate the growth of mobile wallets, which will in turn fuel online payments. Obviously, collaboration between banks, telecommunications companies, and startups will be essential for this to happen. RemX may just be the harbinger of good tidings in Africa.

 

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