In January 2024, there was a press report that woven Finance, a Nigerian fintech, will close its doors in the first quarter of 2024. However, the fintech refuted the claim and said an email warning customers of the impending shutdown was sent in error.
During a call with Techpoint Africa, Frank Ugwulali, head of product and partnerships, said the email communication was meant to be an internal email sent to customers.
The email contained information such as a risk assessment and strategy review, which customers misinterpreted as a shutdown.
Ugwulali also pointed out that recent news of startup closures has intensified customer fears. Although the emails were retracted and a rebuttal issued, the company still had to contact many customers to explain that it was not closing.
The incident, which occurred eight months ago, did not prevent Tissé Finance from developing. Ugwulali revealed that the company has increased its customer base in recent months and hopes to become one of the top five payment companies in the country within the next three years.
This is why the company is embark on a brand refreshwhich Ugwulali says is a way to reintroduce its solution to customers.
As an Authorized Payment Solution Service Provider (PSSP), woven Finance provides payment gateway services to help merchants receive card and bank transfer payments.
Interestingly, he shared that Woven Finance, founded in 2020 by Adedeji Olowe, was one of the first companies to create virtual accounts.
While virtual accounts are now commonplace, Ugwulali said one way the company stands out is through the actionable metrics it provides to businesses on its platform.
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Speed is another area where the company thrives, and he says, whether it’s single or bulk payments, “we deliver on both counts.”
A brand refresh
Wired Finance is also planning a lifestyle exhibition. At the event, the fintech wants to reintroduce products such as virtual accounts for easy transfers, QR codes and scan-to-pay for contactless payments, as well as payment links for remote transactions.
However, Ugwulali also admitted that it was also a way to stay in front of users.
The payments space in Nigeria 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 their launch.
These competitive markets have often reignited debates about whether Africa needs more fintechs, but according to this article, there is still room for growth in the fintech sector in Africa as more and more Africans continue to connect to the Internet.
A 2022 McKinsey report also reveals that 90% of transactions in Africa are still done in cash. To bring this volume of cash transactions onto digital tracks, we will need more financial institutions and a more robust payments infrastructure.
Wired Finance plans to leverage this cash volume by helping businesses integrate its payments infrastructure at the lifestyle show. While there may be room for growth in Nigeria’s payments space, Woven Finance will still need to employ creative ways to gain market confidence, especially with the recent bankruptcy of many startups.