TechCabal Daily: Bank-Backed Fintechs in Nigeria See Massive Growth
The Nigerian fintech landscape, specifically those backed by major banks, is experiencing a period of significant growth. Several bank-owned fintech subsidiaries are actively seeking to establish themselves as dominant players in the market, and recent financial results indicate promising progress. This surge in activity underscores the increasing importance of digital financial services in Africa’s largest economy.
Strong Performance Fuels Growth
Guaranty Trust Holding Company (GTCO)’s fintech arm, HabariPay, has seen remarkable success in the first half of 2025. The company reported a twelvefold increase in profits, reaching $2.70 million compared to $217,094 in the first half of 2022. Stanbic IBTC’s Zest also demonstrated substantial income growth, increasing fourteenfold to $587,128 in the same period. However, Zest is still operating at a loss, with a deficit of $261,525 in H1 2025. Access Bank’s Hydrogen also contributed, achieving a profit of $190,268 in the first quarter of 2025. HabariPay’s impressive profitability positions it as a leading force among bank-backed fintechs in Nigeria. The primary drivers behind this growth are increased merchant activity and substantial transaction volumes. HabariPay generates revenue through net commissions on merchant transactions and sales margins on bill payments, including airtime and bulk SMS services. Additionally, GTCO’s switching license allows for direct transaction processing, which contributes to the scalability of its business model.
The significant growth displayed by these companies highlights the ongoing evolution of the fintech sector in Nigeria and the broader African market.
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