HabariPay’s Bold Play: GTCO’s Fintech Arm Bets on Innovation to Disrupt Digital Payments

As Nigeria’s digital payment ecosystem becomes increasingly competitive, GTCO’s fintech arm, HabariPay, is distinguishing itself by prioritizing innovation over traditional expansion tactics. While competitors flood the market with POS terminals, HabariPay is focusing on cutting-edge payment infrastructure to enhance financial inclusion.

Standing Out in a Crowded Market

Since its fintech pivot in 2022, HabariPay has been competing with industry giants like Paystack, Flutterwave, Moniepoint, and OPay. Despite the intense rivalry, it has delivered ₦4.926 billion ($3.2 million) in profits to GTCO from 2022 through the first half of 2024. Still, its ₦1.7 billion ($1.1 million) profit after tax in H1 2024—representing just 0.17% of GTCO’s total pre-tax earnings—has prompted CEO Eduofon Japhet to push for bolder growth.

Redefining Payment Solutions

HabariPay is taking a distinctive approach by developing infrastructure tailored to underserved markets, rather than mimicking conventional offerings. “Instead of contributing to the oversaturation of POS devices, we’ve created a switch for affordable micro-payments and introduced an NFC-based POS system that transforms smartphones into payment terminals,” Japhet says. This strategy tackles the high cost of digital transactions, making them more accessible to low-income users and filling gaps overlooked by banks and other fintechs.

Scaling Through Strategic Licences

To fuel its expansion, HabariPay has secured a suite of regulatory licences that position it to address key deficiencies in Nigeria’s financial ecosystem:

Switching and Processing Licence: Facilitates smooth transactions between banks and fintechs.
Value-Added Service Licence: Enables USSD and online payments for wider reach.
Super Agent Licence: Extends financial services to rural and underserved areas.
Payment Solution & Terminal Service Licences: Bolsters its merchant payment offerings.

With 12 to 13 banks and major fintechs already integrated into its system, HabariPay is well-equipped to onboard micro-merchants and everyday users. As it expands its POS services, the company is banking on this innovative approach to secure a lasting foothold in Nigeria’s evolving digital payments landscape.