Nigerian Digital Payment Solution LibertyPay Digitizes Ajo Savings System With Issuance of Smart Cards

LibertyPay, a Nigerian digital and payment solution that leverages multiple digital channels to provide payment solutions, has partnered with industry players as it plans to digitize the Ajo savings system.

The Fintech startup plans to digitize the age-long Ajo thrift collection and micro-savings system in Nigeria, by issuing over 150,000 digital cards to customers participating in Ajo groups across the country by the last quarter of 2023.

With the introduction of a digital infrastructure in the Ajo system, the company envisions an enhanced seamless savings process with a significant increase in financial inclusion across the country.

The Chief Executive Officer of LibertyPay, Igbene Otimeyin said that with the innovation of the traditional thrift savings system, the company expects over 150 percent increase in savings collections by thrift collectors from Ajo participants.

In his words,

“Traditional Ajo system has long been a cornerstone of informal micro-savings and thrift collection fostering trust and community cohesion. However, these age-old practices have been in need of a digital makeover to keep pace with the modern world. 

“LibertyPay seizes this opportunity in partnership with industry players to usher in a new era of financial inclusion and empowerment that will not only streamline the savings process but also ensure financial transparency and accountability by all parties. 

“Specifically, we are empowering Ajo collectors with over 1,000 Point of Sale machines simply accessible by dialing *347*180*4#. These devices empower collectors to seamlessly manage contributions and withdrawals, eliminating the need for cumbersome bookkeeping. 

“With these collectors facilitating the transition to digital Ajo, we anticipate a digital thrift collection of N5 billion monthly or an impressive $5.5 million. This colossal shift is set to supercharge the financial inclusion of Nigeria’s informal sector.”

For decades, the Ajo savings system, also known as Esusu, has served an important purpose for daily targeted savings, majorly for small business owners in Nigeria. 

While the system has been beneficial for participants, it is also plagued with challenges such as lack of regulation, lack of proper documentation, and limited financial services, amongst others.

By digitizing the traditional Ajo system, LibertyPay aims to foster significant financial inclusion, extending the reach of the savings system to individuals who may not have access to traditional banjunc services.

Also, digitizing the system can lead to improved transparency, access to additional financial services, automated reminders, and several others.

As LibertyPay continues to innovate, to cater to the financial infrastructure of small and medium businesses across the country, it is worth noting that the Central Bank of Nigeria, on January 2023, granted the company an Approval In Principle (AIP) as a Payment Solution Service Provider Super-Agent.

The AIP issued to LibertyPay is at a step of being a full commercial license CBN Payment Solution Super-Agent to carry out payment services around wallet creation and management, USSD, agent recruitment and management, and any other activities as permitted by the CBN.

LibertyPay, a Nigerian digital and payment solution that leverages multiple digital channels to provide payment solutions, has partnered with industry players as it plans to digitize the Ajo savings system.

The Fintech startup plans to digitize the age-long Ajo thrift collection and micro-savings system in Nigeria, by issuing over 150,000 digital cards to customers participating in Ajo groups across the country by the last quarter of 2023.

With the introduction of a digital infrastructure in the Ajo system, the company envisions an enhanced seamless savings process with a significant increase in financial inclusion across the country.

The Chief Executive Officer of LibertyPay, Igbene Otimeyin said that with the innovation of the traditional thrift savings system, the company expects over 150 percent increase in savings collections by thrift collectors from Ajo participants.

In his words,

“Traditional Ajo system has long been a cornerstone of informal micro-savings and thrift collection fostering trust and community cohesion. However, these age-old practices have been in need of a digital makeover to keep pace with the modern world. 

“LibertyPay seizes this opportunity in partnership with industry players to usher in a new era of financial inclusion and empowerment that will not only streamline the savings process but also ensure financial transparency and accountability by all parties. 

“Specifically, we are empowering Ajo collectors with over 1,000 Point of Sale machines simply accessible by dialing *347*180*4#. These devices empower collectors to seamlessly manage contributions and withdrawals, eliminating the need for cumbersome bookkeeping. 

“With these collectors facilitating the transition to digital Ajo, we anticipate a digital thrift collection of N5 billion monthly or an impressive $5.5 million. This colossal shift is set to supercharge the financial inclusion of Nigeria’s informal sector.”

For decades, the Ajo savings system, also known as Esusu, has served an important purpose for daily targeted savings, majorly for small business owners in Nigeria. 

While the system has been beneficial for participants, it is also plagued with challenges such as lack of regulation, lack of proper documentation, and limited financial services, amongst others.

By digitizing the traditional Ajo system, LibertyPay aims to foster significant financial inclusion, extending the reach of the savings system to individuals who may not have access to traditional banjunc services.

Also, digitizing the system can lead to improved transparency, access to additional financial services, automated reminders, and several others.

As LibertyPay continues to innovate, to cater to the financial infrastructure of small and medium businesses across the country, it is worth noting that the Central Bank of Nigeria, on January 2023, granted the company an Approval In Principle (AIP) as a Payment Solution Service Provider Super-Agent.

The AIP issued to LibertyPay is at a step of being a full commercial license CBN Payment Solution Super-Agent to carry out payment services around wallet creation and management, USSD, agent recruitment and management, and any other activities as permitted by the CBN.y