The problem of interoperability arises as more and more businesses are launched in Africa with the goal of resolving the countless issues that plague the continent. Users of fintech platforms, for instance, want to be able to finish transactions in a seamless manner without having to cycle through a large number of options; Thepeer believes it can solve this problem.
The Raba Partnership, an early investor in Flutterwave and Stitch, is leading the startup company in announcing its seed round of funding, which will total $2.1 million. In addition to Raba Partnership, investors such as Rallycap, Timon Capital, BYLD Ventures, Sunu, Musha Ventures, and Uncovered Fund contributed to this round of funding. Chipper Cash and Stitch, two African fintech companies, also took part in the activity.
The opportunity that Thepeer is addressing reminded us of the fragmented card and mobile money payments landscape Flutterwave identified six years ago, which is one of the reasons why Raba Partnership decided to invest in the one-year-old startup, as the founder of Raba Partnership, George Rzepecki, explained why they did so.
" At the present time, with the proliferation of consumer and B2B fintechs across Africa, Thepeer is building a foundational API-based payments layer. This will allow fintechs to enable money movement natively from within their own wallets and apps. We are beyond ecstatic to lend our support to this forward-thinking group as they construct a network of the next generation.
Kosisochukwu After discovering that they were unable to send money from one fintech wallet to another, the founders of Thepeer, Chike Ononye (Co-Founder and CEO) and Michael "Trojan" Okoh (Co-Founder and CTO), decided to create a platform that would make it possible for businesses to exchange information by means of an application programming interface (API).
AdvertisementMichael Okoh and Chike Ononye, Co-founder of Thepeer. Image source: Supplied
Direct Charge, Send, and Checkout are the three primary offerings that the startup provides to business customers. Users are able to add funds to their wallets at a variety of different businesses using Direct Charge. For instance, a user can transfer money from their fintech wallet to their eCommerce wallet without having to use a bank.
Customers can send money to one another using Send, provided that both parties use businesses that are integrated with Thepeer. Checkout gives users the option to pay using Thepeer as a payment method.
Following the successful completion of its seed round, the startup intends to broaden its product offering while simultaneously expanding the number of businesses it works with across Africa.
Across the continent, there are currently close to 600 different fintech companies, the majority of which run siloed wallets. Our objective is to facilitate connection to any wallet and the processing of payments using that wallet. We are developing an operating system in order to enable businesses to provide an expanded range of services to their clientele. According to Ononye, "our focus is still on product innovation and serving our customers who operate across a variety of geographic locations."
At the moment, the company provides its services to approximately 17 companies located throughout Africa, some of which are Nguvu Health, Buyfoods, Chipper Cash, Bitsika, and Eversend. Since it first opened its doors, the company has seen an increase in the number of transactions of more than 12 million dollars, which is equivalent to a growth rate of 161% month over month.
Wallets, in our opinion at Eversend, are the way of the future when it comes to making payments. Every product that we develop revolves around the multi-currency wallets that we offer. The power of our users' wallets as well as the range of uses for them is being expanded by the Thepeer team.
We've seen customers use their Eversend balances to pay for things like groceries, medical care, and investments made through Thepeer. According to Ronald Kasendwa, Co-Founder and Chief Technology Officer of Eversend, "This is exactly the kind of value-chain we envisioned from our wallets system."
Joshua Koya, CEO and Co-Founder of Nguvu Health, also discussed the benefits that customers of Nguvu Health receive from Thepeer's solution.
The fact that Thepeer has made it simpler for individuals to make payments for therapy through Nguvu Health is one of the most remarkable aspects of this platform. Due to Thepeer's integration with a number of other fintech wallets, our users now have a wider variety of options from which they can make payments for therapy.
Transaction fees for using Thepeer's solution are levied on both the businesses and the customers who use it. Ononye disclosed that the organization formerly utilized a subscription model for commercial clients, but it has since transitioned to a pay-as-you-go model.
Individuals who use the Direct Charge and Checkout features of Thepeer are subject to a charge equal to 0.5 percent of the transaction value plus 25. This fee is subject to a maximum of 2,000. On the other hand, a fee of $0.01 is assessed against commercial enterprises for every Send and Direct Charge transaction.