Decode Fintech Logo
Issue 153
Oct 24 - Oct 30, 2022

Hi there,

You’re invited to the African Fintech Summit happening from November 3 - 4 in Cape Town, South Africa. It’s a space to connect and exchange ideas with fintech leaders and operators. You can register with code "SPONSOR25" to save 25%. See you there!

The Paystack Developer Roadshow is still happening right now in Ghana! Join us at one of our meetup-style events, where you can get a peek at the product roadmap, learn how to get new client leads from Paystack, and score some cool merch from Paystack and Stripe!

Spaces are limited so you should reserve your seat ASAP!

Tochukwu Ironsi
Market Intelligence Specialist, Paystack
AfricaCellulant partners with Mastercard to launch a virtual card solution. Cellulant, a leading payments provider in multiple African countries, has partnered with Mastercard to issue virtual cards to their customers. The virtual cards will be available to Cellulant’s Tingg Wallet customers and can be used for e-commerce and general spending. PYMNTS
AfricaInstant Payment Systems in Africa. In this report, AfricaNenda takes a look at the state of instant payment systems in Africa. AfricaNenda

For a deeper look into instant payments in Nigeria, check out our deep dive into NIBSS Instant Payments (NIP) and its impact on digital payments in Nigeria. 
NigeriaMTN’s MoMo PSB slow start. Ifunanya Chiegboka outlines key reasons for the muted growth of MoMo PSB and suggests recommendations to ramp up adoption. KoreFusion

The Decode Fintech team wrote an exhaustive piece on the potential for MoMo PSB to change the financial landscape in Nigeria. Check it out for more context on Ifunanya Chiegboka’s piece.
AfricaFunding African futures. Mastercard published a new report on the state of funding in Africa, and the emergent solutions that could propel future growth. Mastercard
NigeriaYellow Card obtains Virtual Asset Service Provider (VASP) license in Botswana. Yellow Card, an African cryptocurrency exchange platform, has obtained regulatory approval to operate as a VASP in Botswana. As a VASP, Yellow Card can facilitate the trading of virtual assets including cryptocurrencies and stablecoins. Coin Telegraph

As we’ve written previously, the approach to regulating cryptocurrency activities will vary across different African countries. An excerpt from the issue: “One way to manage the perceived risk associated with a financial product is to totally prevent customers and financial institutions from interacting with the product. Another way to manage that risk is to allow the financial product to interact carefully with existing risk frameworks and iterate those frameworks to minimise the risk over time.”

In countries like South Africa and Botswana, regulators have chosen the second approach by carefully matching crypto activity with the regulatory guidance, rather than banning it. One way to look at these crypto-friendly countries is that they’re regulatory sandboxes on a continental level. With time, the rest of the continent will get a better sense of the benefits (and challenges) of cryptocurrency usage in these countries. 
NigeriaThe Central Bank of Nigeria (CBN) issues guidelines for contactless payments. Nigeria’s apex financial regulator has issued draft guidelines to regulate the use of contactless payments in Nigeria. The guidelines identify the relevant stakeholders and outline permissible activities required to provide contactless payments to end customers. Benjamin Dada

Here’s a link to the full draft of the guidelines. Stakeholders can send feedback to the CBN before November 5, 2022.

We’ve extensively covered the rising trend of contactless solutions in African countries. A combination of increased issuance of contactless cards, NFC-enabled POS devices and recent innovations in Tap-to-Phone payments is likely to shift the card payment experience for many customers. Therefore, regulations being drafted to cover contactless payments are welcome, as long as they enable and encourage this new payment solution. From the first draft of the guidelines, that looks to be the case. 
Share a tip
Do you have an announcement, event, or job posting you'd like to share, or have you come across an interesting bit of African fintech news recently? Hit reply and let me know! I might be able to include it in next week's newsletter.
Know someone who'd enjoy Decode Fintech?
African Fintech Summit
Nov 03, 2022 - Nov 04, 2022, Cape Town, South Africa
The Fintech Summit 2022
Nov 26, 2022, Lagos
Chipper Cash
Senior Risk Data AnalystNew
Nigeria, Uganda, South Africa
Director of revenue Strategy
(Remote) UK, South Africa, Nigeria, Rwanda
Decode Fintech is powered by Paystack
Want to control the emails you receive from us? Update your preferences.
Want out of the loop? Unsubscribe.

We’re at 126 Joel Ogunnaike, Ikeja GRA, Lagos,