Frontier Fintech GPS #26 - April 2nd 2025
Zone CEO releases Regulated Blockchain Whitepaper, Fintech's dominate African Unicorn and Soonicorn list, HabariPay records growth but still lags Fintech peers and other stories that matter
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Hi All, Welcome to the 26th edition of Frontier Fintech GPS where I provide key insights on the top global Fintech news items that matter to you. This newsletter will be arriving in your inboxes every Wednesday morning. The idea behind Frontier Fintech GPS is to help you navigate the endless stream of Fintech news and get smart about global Fintech as it applies to Africa. To those who are yet to subscribe, hit the subscribe button below and share with your colleagues and friends. 🚀
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🌍 Zone CEO Obi Emetarom releases Whitepaper on Regulated Blockchain in Africa
This whitepaper envisions a future where traditional finance and blockchain-based decentralized finance (DeFi) converge under robust regulatory oversight. Authored by Obi Emetarom CEO of Zone, it proposes dividing the system into layers—Infrastructure (the technical backbone), Regulatory (where automated compliance rules live), Product (where services like lending and savings are offered), and External Interface (how end-users connect). By embedding rules for identity checks, fraud monitoring, and transaction screening directly into the blockchain’s underlying code, Emetarom believes banks, startups, and governments can foster innovation without sacrificing customer protections or the trust needed for widespread adoption.
Meanwhile, regulators maintain real-time access to all on-chain activities, with the power to approve or reject new features or participants. This combination of transparency, automation, and layered oversight is said to reduce administrative overhead, lower costs, and enhance security, all while respecting regulatory requirements. Emetarom’s central argument is that such an approach could transform African financial services by allowing faster, cheaper, and safer products—ranging from payments to loans—while still protecting consumers, businesses, and national interests.
Obi’s whitepaper is one of the more comprehensive policy descriptions on how DeFi should work in Africa. It acknowledges the complexity in today’s crypto environment, specifically that regulation is yet to be embedded in the broader Blockchain ecosystem, without offering short-cuts that simply tide things over without truly thinking of DeFi regulation from first principles. Kudos to him on that. That being said, inertia is difficult at a policy level even when things are going badly, let alone in one of Africa’s most profitable sectors. The whitepaper is extremely bold in its vision. So much so that it seems like it would take decades for such policy prescriptions to come to light. This is expecially the case where Central Banks in Africa are actively adopting technology that enables them to have the visibility that the proposed smart-contracts that Obi envisions are intended to bring. The rationale for such a paradigm shift in financial services delivery may not be apparent to the regulators.The team at Zone are smart enough to build a business around Crypto whilst not necessarily relying on the prescriptions from the Whitepaper. That being said, what the whitepaper is in my view is a piece of impressive thought leadership rather than a product road map. It’s well worth a read.
🌍 Fintechs Dominate Africa’s Most Valuable Startups List
The Techcrunch article ranks Africa’s top startups by valuation, spotlighting fintechs as the dominant force among unicorns in a cautious 2025 funding landscape, with $2 billion raised continent-wide in 2024. Nigeria’s Flutterwave leads at $3 billion, having secured over $475 million for its payment solutions, followed by Senegal’s Wave at $1.7 billion with a $200 million Series A in 2021 for mobile money services. South Africa’s TymeBank, a digital bank, reaches $1.5 billion after a recent $250 million Series D led by Nubank, while Chipper Cash, active in Uganda and Ghana, holds a $1.25 billion valuation with over $300 million raised. Nigeria’s Interswitch, a payments infrastructure provider, stands at $1 billion with $300 million in funding, and Egypt’s MNT-Halan, a financial super app, also hits $1 billion, having issued $4 billion in loans. Moniepoint, another Nigerian digital banking startup, recently hit $1 billion, transitioning to unicorn status. Non-fintech unicorns include Andela ($1.5 billion, talent marketplace) and an unnamed eighth startup, but fintechs claim six of the eight slots, underscoring their resilience and investor appeal. For sure, some of the valuations may have been revised downwards over time.
Emerging “soonicorns”—startups nearing $1 billion—further highlight fintech’s momentum alongside diverse innovation. Nigeria’s PalmPay, a payments platform, is valued between $800-$900 million, while Moove, a mobility fintech, sits at $750 million. Kuda, a Nigerian neobank, and M-Kopa, a Kenyan pay-as-you-go solar and finance provider, are also on the soonicorn list with valuations approaching the billion-dollar mark. South Africa’s Yoco, a payments solution for small businesses, and Onafriq, a pan-African payments network, round out this group, reflecting a pipeline where fintechs dominate but sectors like renewable energy and business services also show promise in Africa’s evolving startup ecosystem.
Financial services globally are a massive industry with some of the highest profit margins across all industry. On top of that, Financial Services offer a wide surface area for tech innovation given that they’re a service industry, have a wide range of products and encapsulate GDP. In Africa, the tailwinds include low levels of financial inclusion and an opportunity to leapfrog from a distribution and customer service perspective some of the developed country frameworks. Fintech will continue to be the largest VC vertical in Africa even with AI as I suspect a lot of AI efforts in Africa will be in financial services.
🇳🇬 HabariPay Records Significant Profit Growth as GTCo Expands Fintech Footprint
HabariPay, the fintech arm of Guaranty Trust Holding Company (GTCO), reported a profit before tax of $2.75 million (N4.2 billion) in 2024, up 78% from $1.53 million (N2.35 billion) in 2023, per its audited financial statement released March 31, 2025. Gross revenue increased 34% to $4.33 million (N6.6 billion) from $3.22 million (N4.9 billion), driven by growth across all income streams. Merchant acquiring TPV grew by 36% to US$ 1.12 billion from US$ 0.82 billion a year earlier. Subsequently merchant acquiring revenues soared by 507% from just over US$ 100,000 to US$ 580,000. Operating income rose from US$ 1.67 million to US$ 2.83 million reflecting a growth of 69%. This was propelled by higher transaction volumes on its Squad platform, which integrates payment gateways and POS services.
GTCO has made an aggressive push into Fintech particularly payments and merchant acquiring. That being said, HabariPay is not generating nearly as high revenues as some of those associated with some of its peers in the Fintech space such as Moniepoint, Palmpay and O-Pay. Moreover, the growth whilst strong is not reflective of a product that will catch-up to the aforementioned peers within a short period of time. This is particularly the case if you include inflation in your evaluation of growth. If payment volumes grow at 30% in Nigeria, then they likely reflect the same volume of goods and services sold given they’ve simply grown at the rate of inflation. GT Bank is full of smart guys and they’ll figure it out but I suspect they are either falling short on Go To Market or tech which are both downstream for company culture.
🌍 EAC Advances Digital Integration with Cross-Border Payment System Masterplan
The East African Community (EAC) validated its Draft Cross-Border Payment System Masterplan on March 25, 2025, during a steering committee meeting in Mombasa, Kenya, from March 17-21, 2025, as announced from its Arusha, Tanzania headquarters. The plan, developed with input from Partner States’ Central Banks, aims to enhance the speed, security, affordability, and integration of payment systems across the eight-member region, including Burundi, DR Congo, Kenya, Rwanda, Somalia, South Sudan, Uganda, and Tanzania. It addresses challenges like high transaction costs, slow settlements, and limited interoperability through 20 initiatives, built on four pillars: governance, legal and regulatory frameworks, infrastructure upgrades (including the East African Payment System), and inclusivity. The Masterplan adopts global standards like ISO 20022, explores AI and cloud computing, and proposes a regional instant payment switch, with a phased implementation roadmap to boost trade, investment, and financial inclusion.
Whilst I haven’t read the Masterplan, I’m keen that it’s being driven by Michael Eganza who’s played and continues to play a key role in driving payments innovation in Kenya. What most excites me and is part of the 1-2 year quick-win bucket is regulatory passporting which should be a no-brainer in the East African Community. The EAC is both a customs union and a common market, both descriptions have a focus on making trade easier and part of that should encompass making payments easier. We recently saw Rwanda announcing a passporting policy with Ghana and it’s a shame that an EAC member state had passporting rules with a West African country ahead of its EAC partners. From a payments perspective, Somalia recently launched an instant payments system and Tanzania has had one in place for a while now. Different member states are at various stages of implementation and this should all lead to integration of payment systems which would be a boon for trade.
🇰🇪 Lipa Later Enters Administration Amid Financial Struggles
Lipa Later, a Kenyan buy-now-pay-later (BNPL) fintech, was placed under administration on March 24, 2025, following months of financial difficulties and unsuccessful attempts to secure new funding. Joy Vipinchandra Bhatt of Moore JVB Consulting LLP was appointed administrator, taking control of the company’s assets and operations, as confirmed by a gazette notice. The firm, which last raised $3.4 million in debt in September 2023, struggled to pay employees and suppliers, with at least five staff reporting unpaid salaries for months by December 2024. A legal dispute with Africa Foresight Group over a $13,516 unpaid consultancy fee, ruled against Lipa Later in December 2024, further highlighted its woes. Creditors have until April 23, 2025, to submit claims as the administrator engages stakeholders to determine the company’s future.
Lipa Later’s struggles have been known for quite sometime especially amongst the VC and start-up community in the continent. It was clear that those problems would ultimately end in liquidation. BNPL is an interesting product but in a market like Kenya where access to credit is improving, it’s not necessarily clear how BNPL fits in. Ultimately, credit is a commodity and people get it where they can. Whether I borrow from a Branch or Tala to get a loan or use BNPL, it’s the end goal that matters. Moreover, I wrote some years back that with GDP per capita’s across the continent at a sub US$ 2,000 level, consumer focused BNPL will always be limited. Where it could make an impact is in trade, education, health or other services where there’s demand. On top of that, one of the challenges with BNPL is getting access to scalable and affordable funding. I wrote about this in the private credit article. The hard part of BNPL is when you have creditor payments to make at very high rates whilst struggling with defaults for a non-scalable market. It’s easy to write in retrospect, I’m sure the founders gave it their best shot, but it was just a very difficult problem to solve.
🇬🇧 Standard Chartered Unveils 'SC GPT' to Enhance Operational Efficiency
Standard Chartered launched SC GPT, a generative AI tool, across 41 markets worldwide on March 29, 2025, to enhance operational efficiency and client engagement. The tool, set to empower over 70,000 employees, aims to improve productivity, tailor sales and marketing efforts, advance software engineering through automation, and enhance risk management processes. Developed with strong governance and ethical AI principles, SC GPT reflects the bank’s commitment to responsible innovation. A customized version using group-specific data is in progress to address unique challenges, while local teams can adapt it for market-specific needs, such as digital marketing content and customer advisory services. CEO Bill Winters emphasized that effective adoption of generative AI is a strategic imperative, driving efficiencies and reinforcing Standard Chartered’s leadership in digital banking.
Over the last 10 years, Standard Chartered has executed a strategy that at its core has a focus on strengthening its trade business, rationalising its global business and being tech first. To this end, they have executed very well. Their Kenyan business recently announced record profits and dividends on the back of a very strong digital strategy. Company facing AI would always be the first use case for AI in a bank given that it would have less regulatory scrutiny. They’re smart for starting with internal AI. From this, they can then build the competencies and confidence needed to build customer facing products. What’s for sure is that speed will matter particularly if you’re of the opinion that this is the worst AI will ever be. An insight shared with me by Ngozi Dozie in an upcoming podcast episode.
🇳🇬 cNGN Stablecoin Seeks Listings on Yellow Card and Roqqu to Drive Adoption
The Africa Stablecoin Consortium (ASC), developers of Nigeria’s first regulatory-approved stablecoin, cNGN, have initiated talks with African crypto exchanges Yellow Card and Roqqu to list the Naira-backed token, as reported on April 1, 2025. Already listed on Nigerian exchanges Busha and Quidax, cNGN aims to expand its reach across platforms with a pan-African presence to enhance its remittance use case. While both Yellow Card and Roqqu confirmed discussions, neither has committed to listing the stablecoin, citing uncertainty about market demand. As of March 31, 2025, cNGN had 121.3 million tokens in circulation with 127 holders. The ASC sees cNGN as a tool for low-cost remittances, but its adoption faces a challenge: exchanges need proven demand to list it, yet listings are key to driving that demand.
This is a very interesting article. Essentially, local currency stablecoins in a move to get adoption are requesting for listing in crypto exchanges. The crypto exchanges on the other hand are saying that we think that proving out your volumes and demand are essential prior to us listing you. It’s an existential chicken and egg game for the cNGN. Ultimately, what is the fundamental difference between a local currency stablecoin and the digital money in your Palmpay wallet or GT Bank account? With USD stablecoin, their value lies in their ability to bypass the correspondent banking system. The use case for local currency stablecoins is still up in the air.
🇧🇷 Nubank Broadens Cryptocurrency Offerings with New Additions
Nubank, a leading Latin American digital bank, announced on March 25, 2025, the addition of four new cryptocurrencies—Cardano (ADA), NEAR Near Protocol (NEAR), Cosmos (ATOM), and Algorand (ALGO)—to its Nubank Crypto platform, bringing the total offerings to 20 tokens. This expansion, effective immediately, complements existing options like Bitcoin, Ether, Solana, USDC, and Ripple, catering to its 100 million customers across Brazil, Mexico, and Colombia. The move follows Nubank’s introduction of 11 new cryptocurrency pairs exchangeable for USDC earlier in 2025, including Aave, Avalanche, and Chainlink. Thomaz Fortes, Nubank’s crypto and virtual assets executive director, stated that the new coins enhance portfolio diversification, with plans for further token additions throughout the year based on careful analysis. This builds on Nubank’s crypto initiatives, including a 4% annual return on USDC balances above 10 units, launched earlier in 2025.
I recently wrote about Nubank and its high rate of product velocity that is a function of being a tech company rather than purely a bank. Why this matters is that I think product velocity especially if the product team has a well functioning prioritisation frameworks will be closely linked to customer experience. The ability to constantly improve the product will be a key plank of customer experience in an increasingly digital world. In financial services like any other services business, customer experience is key.
🇺🇸 Fidelity Investments Explores Launch of Dollar-Pegged Stablecoin
Fidelity Investments, a major U.S. asset manager, is exploring the launch of a dollar-pegged stablecoin, as reported on March 26, 2025. The firm’s digital asset arm is currently testing the cryptocurrency, which aims to maintain a 1:1 value with the U.S. dollar, though no immediate launch is planned. This follows a report from the Financial Times indicating advanced testing stages. The move aligns with growing mainstream interest in stablecoins, with $239 billion in circulation globally per CoinGecko, led by Tether’s $140 billion token. Fidelity’s initiative comes after its March 21, 2025, filing to launch a tokenized money market fund recorded on blockchain. The effort coincides with other developments, such as Trump’s World Liberty Financial announcing a similar stablecoin on March 25, 2025, backed by U.S. Treasuries and cash equivalents, reflecting a broader crypto push by traditional finance players.
I’ve been spending a lot of time in Crypto of late and one emerging view I’m having is that traditional finance players have a strong chance to win in the Stablecoins space. The insight is fundamentally based on the fact that even in a purely crypto financial world, the core idea of finance as risk management won’t change. To this end, Stablecoins are digital dollars and what will matter is building trust with clients whether that’s from a payments or custody perspective. Trust is downstream from good risk management which incumbents have perfected. I wrote about Paypal thriving because it figured out fraud management. This explains why Stripe acquired Bridge, not that it will make billions from Stablecoins but because it has built trust with clients to be able to effectively deploy stablecoins. This article rhymes a lot with some of my recent thining around this area.
🇬🇧 Lloyds Bank and Taulia Collaborate to Introduce Virtual Payment Cards
Supply chain finance fintech Taulia partnered with Lloyds to launch Visa-enabled Virtual Cards on March 27, 2025, integrating them into SAP Business Suite solutions, as reported by Finovate on March 29, 2025. Lloyds will extend credit to Taulia customers, enabling businesses to issue virtual cards globally for supplier payments. The initiative, building on Taulia’s prior Visa collaboration, processed over $500 billion in transactions annually for clients like Airbus and Nissan. Taulia, part of SAP since 2022, aims to streamline B2B payments, enhance automation, and improve cash flow visibility, with Lloyds facilitating seamless adoption within the SAP ecosystem for UK businesses.
Recently I wrote about how Citi in Kenya had partnered with Cellulant and Visa to offer a payables solution for its corporate clients that in turn is an SCF solution for corporate suppliers. We’re seeing an increasing theme where virtual cards are being injected into supply chain finance to solve payables problems. The value therein is that you can get real time visibility, provision limits to different people in a payables org and even inject credit. I should expect more such announcements.