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    HomePartner ContentAza Finance Targets Nigerian Payment Giants Flutterwave, Paystack with New PSSP License

    Aza Finance Targets Nigerian Payment Giants Flutterwave, Paystack with New PSSP License

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    In a significant move to enhance its footprint in Nigeria’s competitive fintech sector, BT Payment Services Nigeria Limited (BT Payment), a subsidiary of Aza Finance, announced today that it has secured a Payment Solution Service Provider (PSSP) license from the Central Bank of Nigeria (CBN). This license enables BT Payment to directly facilitate naira collections and payments, positioning Aza Finance to compete head-on with industry giants Flutterwave and Paystack in the Nigerian market.

    Founded in 2013 as BitPesa, Aza Finance has steadily expanded its reach across Africa and beyond, providing foreign exchange, payments, and treasury services to companies operating in emerging markets. Previously reliant on local partnerships to offer services in Nigeria, the new PSSP license allows BT Payment to conduct these transactions independently, potentially improving speed and cost-efficiency for its clients in Nigeria.

    “We are excited to deepen our role in Nigeria as a licensed payment service provider,” said Elizabeth Rossiello, CEO and founder of Aza Finance. “Our long-standing partnerships with local fintechs and banks have shown us the unique needs of Nigerian businesses. We are committed to fostering growth in this market as demand for naira-denominated transactions increases.”

    The PSSP license broadens the range of services BT Payment can offer. In addition to serving as a payment gateway for processing transactions, it can now develop payment application software, offer merchant services, and aggregate payments for Nigerian businesses. This suite of services brings Aza Finance into direct competition with established Nigerian payment providers like Flutterwave and Paystack, which have set the standard for payment processing and merchant services across Nigeria and West Africa.

    Since its founding, Aza Finance has made strides in diversifying its geographic and currency support, now offering services in over 115 countries and handling major African and G20 currencies. Recent expansions have seen the company enter markets in Egypt, Cameroon, Zambia, Brazil, and India, adding to an already extensive network that spans countries such as Kenya, South Africa, Ghana, and Morocco.

    These expansions are part of a broader strategy to tap into the burgeoning demand for cross-border payments and foreign exchange services in Africa. With the recent acquisition of South African cross-border payment firm Exchange4Free, Aza Finance has also reinforced its capacity to manage foreign exchange flows in emerging markets. This acquisition has bolstered its FX and treasury service offerings and broadened its API and compliance capabilities, positioning it as a dominant player in African fintech.

    A Competitive Advantage in Nigerian Fintech

    Nigeria remains one of the continent’s largest markets for fintech innovation, with demand for digital payments continuing to grow rapidly. Flutterwave and Paystack have long dominated this space, offering extensive merchant payment services that have made them synonymous with online commerce in Nigeria. By obtaining the PSSP license, Aza Finance hopes to gain a foothold in this lucrative market by offering an alternative platform for payment processing that emphasizes cost-efficiency and operational flexibility.

    However, Aza Finance faces steep competition from established players with robust merchant networks and customer trust. Flutterwave, for instance, has expanded its offerings to include consumer-facing products, while Paystack, now part of the global payments company Stripe, brings international reach and technical expertise. To compete, Aza Finance may leverage its experience in foreign exchange and international remittances, areas where it holds a distinct advantage given its multi-currency expertise and cross-border transaction capabilities.

    In 2023, Aza Finance’s achievements have not gone unnoticed. The company was named a semi-finalist for the Milken-Motsepe prize and listed among the top five inspiring workplaces in the Middle East and Africa. It was also awarded the Best Use of Technology in Business Payments by the Paytech Awards, with Rossiello recognized as Fintech Leader of the Year by Fintech Awards London.

    Looking ahead, Aza Finance plans to unveil additional strategic initiatives by the end of 2024, including potential new licenses in other African and global markets. Company representatives are expected to attend high-profile industry events in December, such as the Milken Middle East and Africa Summit and the Africa Financial Industry Summit (AFIS), where they will explore opportunities for new partnerships and expansions.

    With its newly acquired PSSP license, Aza Finance is poised to deepen its influence in the Nigerian fintech sector, bringing additional options for naira payments and collections to its customers. As the company vies for market share alongside established competitors, it seeks to distinguish itself with a strong commitment to efficient, secure cross-border solutions tailored to the needs of African businesses.

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