While m-payment remains dominated by English-speaking players, PayDunya, the Senegalese fintech company intends to impose itself on the West African market, before conquering the rest of the continent. Inclusiveness and security are the key words of the startup, which is multiplying digital solutions adapted to a local ecosystem that is singularly under-banked.
“Our PayDunya platform is designed to strengthen Africa’s digital ecosystem by supporting the digital transformation of businesses, whether formal or informal, and financial institutions,” said Aziz Yerima, CEO and co-founder of PayDunya.
Launched in 2015 by Youma Fall (Senegal), Christian Palouki (Togo), Honoré Hounwanou (Ivory Coast) and Aziz Yerima (Benin), the idea of creating this fintech company was born on the benches of the university.
“In 2013, I participated in helping a women’s economic interest group in Pikine, as part of a student association. We designed a website for them, but we were not able to pay for the hosting of the site, because we did not have a bank card (…) We then tried to integrate Paypal on the site for customers from the diaspora, but there again, we were faced with a wall, because we did not have a bank account in a Western country. At that point, I realized how excluded we were from online payment financial services” explained Aziz Yerima. “However, even my grandmother has a cell phone, so today any African can access e-payment,” he continued.
Find out more about the new Paypal for Africa, PayDunya, and read the latest business news with our companion app, Born2Invest.
The company’s efforts have eventually paid off
The “PayDunya” adventure has not been a sinecure, both in terms of partnerships with banks, mobile money and money transfer operators, as well as companies that had to be convinced of the merits of this digital migration. In addition, the startup also had to deal with human resources that are still too scarce in the fintech sector on the continent.
Nevertheless, 5 years later, the results are there. “We have 600 active client companies. For the year 2020, we are reaching an average of 50,000 transactions per day with peaks at 65,000 transactions,” said the young entrepreneur. The fintech company employs 54 employees of about ten different nationalities and recorded a turnover of $2.96 million (€2.5 million) in 2019.
The fintech company offers multiple security guarantees
According to a study conducted by PayDunya on the eve of the COVID-19 crisis in Côte d’Ivoire and Senegal, despite the alternative solutions to the low rates of bankization at the regional level, nearly 47% of respondents remain reluctant to digital means of payment. “In Africa, when we talk about the Internet, we instantly think of the phenomenon of mobile money scams. This raises some concerns,” explained Aziz Yerima.
A study published earlier this year by DataProtect in Morocco revealed that sub-Saharan banks were particularly vulnerable to cyber-attacks, estimating the cost of cybercrime at $4.14 billion (€3.5 billion) in Africa and $625 billion (€528 billion) worldwide. Of the 148 banks surveyed in the West African Economic and Monetary Union (WAEMU) as well as in Central Africa (Gabon, Congo, and DRC), more than 85% said they had already been victims of cyber-attacks including bank card fraud and phishing (in about 30% of cases).
In order to convince as many users as possible, the startup has emphasized security, via its PayDunyaSecure program for all operations. Among the security protocols put forward by the company, Tokenization, Time Out, OTP (One Time Password), All Or Nothing, API keys, Checksum, PayDunya PAL, are all measures taken by the company to reassure worried customers and convince prospects. “We should obtain the highest standard in terms of financial transaction security, the PCI DSS (Payment Card Industry Data Security Standard) by next November,” emphasized Aziz Yerima.
PayDunya: a Paypal for Africa?
“Paypal may have been created by an African, but not for the African market” (Elon Musk, born in South Africa), explained Aziz Yerima who sees a niche to be taken. “Our ambition is pan-African and we have to create our own model,” he explained.
“Originally, we were inspired by Paypal (…) We started with mobile money before launching bank card payment services. We then developed physical means of payment through a network of partner stores. We are gradually enriching our range of solutions. To date, we offer Webpay (receiving payments on the website), Mobpay (receiving payments on mobile application), DmP (sending invoices by email or SMS), Collect (collecting payments on a recurring basis and automated by email and SMS) and Push which allows thousands of people to pay in 1 click on their mobile money, bank or cash accounts. Recently, with Social Shop, corporate customers can create their e-shop on social networks in 5 minutes.”
“There are no large international groups such as Paypal in Africa, because on a continent where the rate of bankization is around 10%, the African market remains very limited,” said Aziz Yerima. However, the situation has been evolving for 5 years, without having “reached this economy of scale that would make Africa attractive to these major players,” he added. With an e-commerce penetration rate of 2% to 3% on average on the continent (15% to 18% in Asia), the sector offers good prospects.
“We must create our own model, like what happened in China. Social Shop – our click and pay solution – is one of the African solutions we offer. We are also developing the “offline to online” through our network of partner shops,” adds Aziz Yerima, adding that “everything is free with us. We only get paid if there is a successful transaction to which we apply a percentage, a bit like Paypal. We charge between 1.5% and 3%. For each customer, PayDunya proposes an adapted accompaniment as well as a precise development plan.”
Among its successes, the fintech company counts the support of Fabellashop, one of the leading sites of cosmetics in Senegal. Present in Ivory Coast, Benin and Senegal, the startup will enter the market in Mali and Burkina Faso by the end of the year.
Finally, in spite of the health context which has disrupted PayDunya’s development prospects, the startup aims to be present in about twenty countries in the medium term, including in the English-speaking regions of Africa.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in LA TRIBUNE AFRIQUE, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Mozambique/Debt: Credit Suisse Pleads Guilty and Pays $475 million
Credit Suisse bank has pleaded guilty to conspiracy to commit fraudulent financial transfer by paying $475 million in a settlement...
Virtual and Augmented Reality Are Shaking Up the Education Experience
While virtual and augmented reality are making a big impact in all manner of fields, education is one sector that...
MicroStrategy Stock Could Fall 12% after Bitcoin ETF Launch
MicroStrategy's revenue has dropped from more than $513 million in 2017 to more than $480 million in 2020. Profits have...
Atrys Health Increases Sales Fivefold in the First Half of 2021
Atrys Health presents its financial results for the first six months of 2021 while announcing that it has reached an...
Medical Cannabis To Be Sold Freely in Drugstores across Colombia
The Colombian Association of Cannabis Industries, Asocolcanna, indicated that the potential of this market is great since the country went...
Cannabis2 weeks ago
Malta Might Soon Legalize Private Cannabis Consumption
Featured2 weeks ago
Why an Energy Crunch is Most Likely Coming
Featured2 weeks ago
Small Businesses in Colombia Benefit From the Development of the Fintech Sector
Cannabis2 weeks ago
ArgenCann Will Be Part of Expo Cannabis 2021