In January 2024, there was a news report that Woven Finance, a Nigerian fintech, would shutdown in Q1 2024. However, the fintech refuted this and said an email warning customers of the impending shutdown was sent in error.
On a call with Techpoint Africa, Frank Ugwulali, Head, Products and Partnerships, said the email communication was meant to be an internal email that was sent to customers.
The email contained information such as risk assessment and a strategy review, which customers misconstrued as a shutdown.
Ugwulali also pointed out that recent news of startups shutting down intensified customers’ fears. While the emails were retracted and a rejoinder was issued, the company still had to reach out to many customers to explain that it wasn’t shutting down.
The incident, which happened eight months ago, has not stopped Woven Finance from growing. Ugwulali revealed that the company has increased its customer base in the past few months, and is looking to be one of the top five payment companies in the country in the next three years.
This is why the company is embarking on a brand refresh, which Ugwulali says is a way of reintroducing customers to its solution.
As a licensed payment solution service provider (PSSP), Woven Finance provides payment gateway services to help merchants receive payments through card payments and bank transfers.
Interestingly, he shared that Woven Finance, which was founded in 2020 by Adedeji Olowe, was one of the first companies to start virtual accounts.
While virtual accounts are now commonplace, Ugwulali said one way the company stands out is through the actionable metrics it provides for businesses on its platform.
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Speed is another area where the company thrives, and according to him, whether single or bulk payouts, “we fit the boot in both circumstances.”
A brand refresh
Woven Finance is also planning a lifestyle expo. At the event, the fintech wants to re-introduce products like virtual accounts for easy transfers, QR codes and scan-to-pay for contactless payments, and payment Links for remote transactions.
However, Ugwulali also admitted that is also a way to stay in the face of users.
Nigeria’s payment space has grown significantly over the years, with competition intensifying among startups. Flutterwave and Paystack, the dominant startups in the space, have remained almost unchallenged since they launched.
These competitive markets have often revived debates about whether Africa needs more fintechs, but according to this article, there’s still room for growth in Africa’s fintech sector as more Africans continue to move online.
A 2022 report by McKinsey also reveals that 90% of transactions in Africa are still cash-based. To bring on this volume of cash transactions upon digital rails, we will need more financial institutions and a more robust payment infrastructure.
Woven Finance plans to tap into this cash-based volume by helping businesses integrate its payment infrastructure during the lifestyle expo. While there might be room for growth in Nigeria’s payment space, Woven Finance would still need to employ creative ways to earn the trust of the market, especially with many startups going under lately.