Moniepoint is the latest Nigerian fintech to head east, following in the footsteps of Flutterwave, Paystack, and Chipper Cash—all seeking a foothold in the region where M-Pesa continues to set the standard for mobile finance.
Second Eye Africa
More Nigerian fintechs are now eyeing East Africa, drawn by the region’s investor appetite and a regulatory climate that encourages digital finance.
With venture capital flowing in and policies geared toward innovation, the East has become a logical target—especially as Nigeria’s own market growth slows under tighter regulations and a maturing fintech space.
“East Africa is a natural progression,” said Nairobi-based analyst Martin Macharia. “Mobile money here is embedded in everyday life, the trust is deep, and the infrastructure’s already in place. Startups aren’t building from zero—they’re plugging in.”
In 2024, Kenya pulled in $638 million in venture funding, accounting for nearly 90% of the region’s total. Nairobi, Kigali, and Kampala have become magnets for fintech capital. By October last year, Egypt and Kenya had together absorbed more than half of all African VC funding, even as the broader continent saw an overall dip.
Now Moniepoint is making its move east, joining a pack of Nigerian peers already reshaping the continent’s financial map. Last year, Rise acquired Kenya’s Hisa to enter the market, offering investors access to both local and global assets—a play that built on Kenya’s strong payments backbone and rising retail investment interest.
With increased competition at home, more Nigerian startups are turning to Kenya, Rwanda, Uganda, and Tanzania for room to grow.
Flutterwave, one of the earliest movers, launched its Barter product in Kenya in 2018 and followed with expansion into Rwanda two years later. But it wasn’t all smooth sailing. In 2020, Kenyan authorities accused the company of facilitating money laundering and froze its accounts—a case the High Court later threw out, calling the suit “inappropriate, negligent, reckless, and absurd.”
Paystack has since followed a more formal path, securing a license from the Central Bank of Kenya to operate as a Payment Service Provider. After its acquisition by Stripe in 2020, Paystack has worked closely with regional processors and merchants to enable seamless digital transactions.
Chipper Cash, founded by a Ghanaian and a Ugandan in San Francisco, used Nigeria as its launchpad and quickly spread across East Africa. With services now live in Kenya, Uganda, Rwanda, and Tanzania, the company focuses on cross-border payments and remittances powered by mobile money rails. In March, it teamed up with Ripple to upgrade its infrastructure, using blockchain to drive faster and cheaper transfers.
What draws fintechs to East Africa is no secret. Mobile money dominates the region’s financial landscape, and Kenya’s M-Pesa remains a gold standard. The foundations are solid—and for companies that have mastered digital finance elsewhere, it’s a ready-made launchpad.
Their timing also aligns with rising intra-African trade and remittance flows under AfCFTA, which is fueling demand for faster and more reliable financial services. Nigerian fintechs aren’t replacing mobile money—they’re layering on services like credit, payments, and digital banking for small businesses.
Macharia says that regulation also plays a big role. “Kenya and Rwanda have made it easier to enter the market,” he noted. “Meanwhile, in Nigeria, shifting policies and crypto crackdowns have made things a bit trickier.”
The funding trends back that up. Venture investment into East African fintechs is on the rise, and more international investors are taking positions in cities like Nairobi and Kigali. This creates natural bridgeways for Nigerian firms looking to partner rather than build from scratch. Paystack’s recent work with local processors hints at this integration-focused strategy.
Still, these firms are entering a competitive market. Mobile money players have deep roots and strong brand loyalty. To stand out, Nigerian entrants are looking at merchants and SMEs—spaces where they can offer more specialized tools.
Moniepoint, for example, is leaning into its banking infrastructure to support enterprise payments, positioning itself as more than just another wallet.
Of course, nothing’s guaranteed. Success will depend on local adoption, effective compliance, and strong fraud controls. Even in mobile-first regions, earning user trust takes time.
But the momentum is real. As the push eastward continues, Nigerian fintechs will need to stay nimble, adapting to new terrain while finding ways to add value in ecosystems that are already thriving.
