The Chief Know-how Officer of a monetary expertise firm, Payaza, Mr Philips Akinyele, tells LAOLU AFOLABI the technological methods to deal with challenges confronted by Small and Medium Enterprises
What key technological methods are you spearheading to deal with the challenges SMEs face in accessing funds?
At Payaza, our technological methods are centred on enhancing monetary inclusion for SMEs throughout Africa. We perceive that entry to monetary providers is essential for enterprise development and sustainability, notably in rising markets. Our strategy is constructed on three key pillars: accessibility, safety, and innovation.
We now have developed a complete suite of providers that embody each on-line and in-person fee capabilities, guaranteeing companies can seamlessly ship and obtain funds throughout numerous channels. This consists of assist for cell cash, financial institution transfers, card funds, and QR code-based transactions, offering flexibility and comfort for companies and their clients. Actual-time transaction monitoring and detailed reporting instruments additional empower SMEs to handle their money movement effectively.
Safety is on the core of our fee options. We leverage superior encryption applied sciences and cling to world compliance requirements to guard person information and transactions, giving companies peace of thoughts. Along with facilitating funds, we provide specialised providers like Payaza Increase, designed to empower SMEs by offering entry to short-term loans with low rates of interest and versatile reimbursement phrases. This initiative addresses the working capital challenges that many small companies face, enabling them to beat monetary obstacles, handle seasonal fluctuations, and seize development alternatives. Payaza Increase additionally features a streamlined software course of, guaranteeing fast and hassle-free entry to funds.
Our platform integrates with fashionable accounting software program and enterprise administration instruments, permitting SMEs to automate processes and achieve insights into their monetary well being. We’re additionally dedicated to monetary literacy, providing sources and coaching to assist entrepreneurs make knowledgeable monetary selections.
Finally, our mission is to create a financially inclusive ecosystem the place SMEs can thrive, drive innovation, and contribute to the broader financial improvement of Africa. By frequently evolving our providers primarily based on market wants, we intention to stay a trusted associate within the development journey of African companies.
You talked about that expertise nonetheless feels distant for a lot of SMEs in Africa. What are the principle obstacles to efficient tech adoption for SMEs?
The primary obstacles embrace a number of interrelated components that hinder efficient adoption. One is restricted digital literacy. Many SMEs lack the technical abilities wanted to undertake, use, and maximise the advantages of superior digital options. This hole is especially evident in areas the place formal coaching alternatives are scarce, making it difficult for enterprise homeowners to navigate digital platforms, software program, and instruments successfully.
Two, excessive prices. The upfront bills related to buying, implementing, and sustaining expertise can deter smaller companies, particularly these working on tight budgets. These prices could embrace {hardware} purchases, software program licenses, and ongoing upkeep charges, which might pressure monetary sources.
Three, infrastructure gaps. Inconsistent and unreliable web connectivity, together with frequent energy outages in some areas, considerably restrict SMEs’ means to undertake and maintain digital options. These infrastructure challenges create obstacles to accessing cloud-based providers and conducting real-time digital transactions.
Additionally, there are belief points. Considerations about information safety, privateness, and the chance of fraud usually trigger SMEs to hesitate in adopting digital options. Many enterprise homeowners fear about safeguarding delicate info and navigating on-line transactions safely.
Payaza has the A1 short-term and BBB+ long-term scores. What differentiates your agency’s expertise and strategy to funds from others within the area?
Payaza stands out because of localised options. Our expertise is constructed with a deep understanding of African markets, addressing their distinctive fee and operational challenges. Additionally, there may be flexibility and scalability. Our instruments develop alongside SMEs, guaranteeing they continue to be related as companies increase. One other level is the seamless integration, as Payaza simply connects with different platforms, lowering friction for customers. The agency additionally focuses on inclusivity. We prioritise underserved areas, extending monetary providers to beforehand excluded companies. These components, mixed with our A1 short-term and BBB+ long-term scores, replicate our reliability and dedication to excellence.
Solely six per cent of Africa’s SDG 2030 targets are on observe. What’s your opinion on how expertise can handle this?
Know-how performs a pivotal function in accelerating progress towards the Sustainable Improvement Targets by fostering innovation, bettering entry to sources, and creating alternatives for inclusive development. Know-how makes an influence by enhancing monetary inclusion. Digital instruments break down obstacles to monetary providers, particularly for SMEs, by offering entry to credit score, financial savings, and funding alternatives. Cell banking, digital wallets, and peer-to-peer lending platforms empower small companies to handle their funds, put money into development, and take part within the broader economic system. This straight helps SDG 8 (Respectable Work and Financial Development) and SDG 1 (No Poverty).
Know-how additionally drives sustainability. Know-how permits the adoption of renewable vitality options and helps companies in lowering their carbon footprints. Good grids, energy-efficient applied sciences, and digital platforms that monitor and optimize useful resource use contribute to local weather motion and environmental sustainability (SDG 13). Improvements like IoT units assist companies observe and cut back waste, selling accountable consumption (SDG 12).
It additionally improves training and abilities improvement. On-line studying platforms and digital coaching instruments make training accessible to entrepreneurs, enabling them to upskill and change into extra aggressive in world markets. These platforms present programs on enterprise administration, advertising, monetary literacy, and rising applied sciences, contributing to SDG 4 (High quality Training). Additionally they foster lifelong studying, empowering people to adapt to altering market calls for.
Know-how fuels innovation in essential industries akin to agriculture, healthcare, and logistics. For instance in agriculture, precision farming and digital marketplaces enhance productiveness and market entry, supporting SDG 2 (Zero Starvation). In healthcare, telemedicine and digital well being data improve entry to high quality care, advancing SDG 3 (Good Well being and Properly-being).In logistics, AI and blockchain streamline provide chains, lowering inefficiencies and selling financial development.
At Payaza, we combine these transformative components into our strategy, guaranteeing that our options not solely handle rapid enterprise wants but additionally contribute to long-term developmental objectives. By way of our efforts to reinforce monetary inclusion, assist sustainable practices, and foster innovation, we align with world SDG targets, serving to SMEs thrive whereas driving optimistic social and environmental change.
Please share examples of how expertise can rework a enterprise or sector in a major means
Know-how has the ability to revolutionise the retail sector, agriculture, healthcare, and much more. For the retail sector, digital fee methods cut back reliance on money, streamline stock administration, and supply data-driven insights for decision-making. For agriculture, precision farming instruments and digital marketplaces assist farmers optimise yields, join with patrons, and cut back post-harvest losses. In healthcare, via telemedicine platforms, entry to care could be expanded in underserved areas, creating alternatives for SMEs within the well being sector to thrive. These examples spotlight how expertise not solely improves operational effectivity but additionally drives innovation and creates new development alternatives.
Payaza is operational in 19 African international locations, North America, the UK, and the Center East. How does the corporate’s expertise allow SMEs to entry these world markets seamlessly, and what traits are you noticing in cross-border funds for African SMEs?
Payaza’s expertise helps SMEs in cross-border funds, by offering cost-effective and clear fee options that simplify transactions throughout areas. It helps a digital presence. Our instruments assist SMEs set up an internet presence, making them extra seen and accessible to worldwide shoppers. Additionally, our built-in instruments ease the complexities of working throughout a number of jurisdictions. We’re noticing an growing demand for sooner settlements, decrease transaction charges, and real-time information insights, signalling a shift in direction of a extra built-in monetary ecosystem for African SMEs.
What improvements or shifts in fee expertise do you imagine can have the largest influence on SMEs in Africa over the following three to 5 years?
Within the subsequent three to 5 years, probably the most impactful improvements will embrace AI-driven monetary insights: like blockchain expertise, which ensures transparency and reduces prices in cross-border transactions; digital wallets and cell cash will proceed to dominate as SMEs prioritise ease and accessibility. Additionally, providing SMEs entry to financing straight inside fee platforms will streamline operations and empower companies to develop sustainably.
Are you able to share extra about Payaza’s grant programme for SMEs? What standards do you employ to pick SMEs, and what influence do you hope these grants can have on their development and entry to markets?
Our grant programme focuses on choice standards as we prioritise SMEs with progressive concepts, scalable enterprise fashions, and a demonstrated want for monetary assist. Additionally, the grants intention to foster development, enhance market entry, and allow these companies to undertake new applied sciences. Finally, we wish to create a ripple impact the place profitable SMEs uplift their communities and contribute to broader financial improvement.
What’s your agency’s long-term imaginative and prescient when it comes to fostering an inclusive monetary ecosystem for SMEs?
Payaza’s long-term imaginative and prescient is to create an inclusive monetary ecosystem the place each SME, no matter dimension or location, can entry instruments and sources to thrive. This consists of increasing monetary inclusion via accessible digital platforms, selling cross-border commerce by simplifying funds and lowering prices, and investing in SME training and abilities improvement to reinforce their competitiveness. As CTO, my function will evolve to anticipate rising traits, foster innovation, and lead the event of adaptable, cutting-edge applied sciences that handle the dynamic wants of SMEs. This includes collaborating with companions, leveraging information to tell methods, and guaranteeing Payaza stays a trusted ally for African companies of their development journeys.
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Cell banking, digital wallets, and peer-to-peer lending platforms empower small companies to handle their funds, put money into development, and take part within the broader economic system.