In a bid to gain a foothold in the Nigerian fintech market, PayZeep, a year-old startup, has partnered with the Amalgamated Union of App-Based Transporters of Nigeria (AUATON) to provide drivers with carpooling a new payment solution.
Tired of being subjected to commission fees and fraudulent passenger transfers, Uber and Bolt drivers are increasingly seeking greater autonomy. The PayZeep solution offers them just that, allowing them to receive payments directly from passengers using portable point-of-sale (PoS) devices.
“By partnering with drivers, we aim to corner a segment of the payments market,” said Tobi Molagun, head of sales and business development at PayZeep. “While large mobility companies rejected our integration, we saw an opportunity in a partnership with the drivers’ union.” PayZeep offers services to merchants, bank branches and payment terminals in Nigeria
The move comes at a time when taxi drivers in Nigeria are facing growing challenges. Rising fuel prices, high maintenance costs and the need to pay commissions to ride-hailing platforms have reduced their revenue. Many drivers have resorted to offline rides to supplement their income.
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PayZeep’s solution offers drivers a way to bypass the payment systems built into ride-sharing platforms from Uber, Bolt, InDrive and LagRide, giving them more control over their earnings. The company, however, imposed certain conditions. Drivers must complete at least ten trips per day during a month-long pilot program, and they will also have to pay fees for PoS devices.
While some drivers have expressed concerns about the daily commute target, PayZeep maintains that it is necessary to ensure the viability of the program. The company also plans to offer drivers a commission on transactions processed through PoS devices.