EBANX, a payments provider that began operations in Brazil a decade ago, has grown into a billion-dollar company with approximately one billion transactions completed in 15 countries.
The Brazilian fintech is launching in Africa for its next move and first voyage outside Latin America, beginning with Kenya, Nigeria, and South Africa. The move aims to tap into Africa’s growing digital economy, fueled by the rise of fintech companies such as Flutterwave, Paystack, OPay and others.
EBANX is starting with markets where digital transactions are taking off the fastest. In Nigeria, Kenya, and South Africa, cash is becoming less popular as a payment method for online transactions. These three countries account for half of Africa’s GDP and are the continent’s largest markets for fintech, with varying degrees of digital payment method penetration.
The company is assessing local payment giants such as M-Pesa’s popularity in Kenya and OZOW’s electronic fund transfer capabilities in South Africa. In Nigeria, where only 44% have access to smartphones, it’s gunning for those without smartphones via USSD.
While EBANX has recorded impressive growth in Latin America, it is far from an Amazon-sized giant. First, it has had to fight for recognition in South America against dLocal, a Nasdaq-listed Uruguayan payments company.
EBANX’s edge is its experience, seeing that it predates big names like Paystack, Flutterwave, and MFS Africa. That means it’s less likely to have difficulties raising funds than many local startups. However, experience is not all it takes to win a new market. We see that in how M-Pesa struggled to gain traction in South Africa, despite the latter being the least cash-dependent country.