OPay has become a major player in Nigeria’s fintech scene. The company’s value has grown rapidly since its early days.
OPay is now valued at nearly $3 billion, ($2.7billion) up from $2 billion in 2021. This jump shows how fast digital payments are growing in the country, and across Africa.
Company profile
Founding and mission
OPay was founded in 2018 by Opera, the web browser company via acquisition of Paycom.
Yahui Zhou, Opera’s CEO, played a key role in OPay’s creation. The company’s mission is to make financial services accessible to everyone in Nigeria.
OPay aims to solve the problem of limited banking access in Nigeria. Many Nigerians lack traditional bank accounts. OPay offers an easy-to-use mobile platform for payments and transfers.
The company quickly gained traction. It raised significant funding from major investors. This allowed OPay to expand its services and reach more users across Nigeria.
Products and services
OPay offers a wide range of financial services through its mobile app:
- Mobile money: Send and receive payments easily
- Bill payments: Pay for utilities, TV, and more
- Airtime purchases: Top up phone credit
- Merchant services: Accept digital payments for businesses
The company has also branched out into other areas:
- OFood: Food delivery service
- OTrade: E-commerce platform
- OBus: Ride-hailing service (discontinued)
OPay’s core strength is its mobile wallet though. You can use it for everyday transactions without a traditional bank account. The app is user-friendly, making digital finance accessible to many Nigerians.
OPay continues to expand its offerings. They aim to create a comprehensive “super app” for financial and lifestyle services in Nigeria.
Valuation and financial growth
Recent funding rounds
OPay’s most significant funding round came in 2021. The company raised $400 million in a Series C round led by SoftBank Vision Fund 2.
This massive investment catapulted OPay to unicorn status.
The funding round valued OPay at $2 billion. This made it one of Africa’s most valuable startups at the time.
Since then, OPay’s value has continued to grow. Recent estimates put the company’s valuation between $2 billion and $2.5 billion as of 2024.
Some reports even suggest it may be approaching $3 billion.
Investor highlights
OPay has attracted top-tier investors. This speaks volumes about the company’s potential.
SoftBank Vision Fund 2 led OPay’s Series C round. SoftBank is known for backing high-growth tech companies worldwide.
Sequoia Capital China also participated in the funding round. Sequoia is one of the most respected venture capital firms globally.
Other notable investors include:
- DragonBall Capital
- 3W Capital
- Source Code Capital
- Softbank Ventures Asia
This mix of international and Asian investors shows strong confidence in OPay’s business model and growth potential.
Transaction volumes and revenue
OPay’s valuation is backed by impressive operational metrics.
The company processes millions of transactions daily, with a userbase of over 40 million users. While exact figures aren’t public, OPay’s monthly transaction volumes are believed to be in the billions of dollars.
OPay’s revenue has grown alongside its transaction volumes. The company makes money through transaction fees and other financial services.
Key factors driving OPay’s transaction growth include:
- Wide adoption of its mobile payment platform
- Expansion of its merchant network
- Introduction of new financial products
As OPay continues to capture more of Nigeria’s digital payments market, its revenue and valuation are likely to keep climbing.
Strategic partnerships and market expansion
OPay’s growth strategy focuses on building strong alliances and entering new markets.
The company has formed key partnerships domestically and globally while expanding its reach across Africa and beyond.
Domestic alliances
OPay has teamed up with major Nigerian banks and businesses to grow its user base.
The company partnered with Lagos -based retailers to offer in-store payments. It also works with local transport companies to provide ride-hailing services.
These partnerships help OPay reach more customers. They also make its app more useful for daily transactions.
OPay gives small businesses tools to accept digital payments easily. This helps both the companies and OPay grow together.
Global partnerships
OPay joined forces with WorldRemit to offer international money transfers. This deal lets OPay users send and receive money from abroad quickly.
The company also works with global payment networks. These alliances help OPay process transactions across borders.
OPay’s partnerships extend its reach beyond Nigeria. They position the company as a key player in African fintech.
Entry into new markets
OPay is expanding across Africa and the Middle East. The company launched in Egypt, aiming to tap into North Africa’s large population.
OPay got an International Money Transfer License to operate in more countries. This lets OPay offer its services to millions of new users.
The company also eyes opportunities in e-commerce. It’s building tools to help online sellers accept payments easily.
Innovation and impact
OPay’s rise in Nigeria has brought new financial solutions to millions. The company’s focus on tech and social impact has changed how people handle money and access services.
Addressing the unbanked
OPay has made big strides in helping unbankedThe term unbanked refers to individuals who don't have access to traditional banking services at formal financial institutions like checking accounts,... Nigerians.
The company’s mobile app lets people open accounts easily, without having to visit a bank branch.
OPay’s wide network of agents brings banking to remote areas. These agents help people deposit cash, withdraw money, and pay bills.
This makes banking possible for those far from traditional banks.
The app’s simple design works well on basic phones. This helps more people use digital money, even without smartphones.
Technological advances
OPay uses cutting-edge tech to make payments faster and safer.
The app uses blockchain and big data to keep transactions secure.
The company’s tech team keeps improving the app. They add new features like QR code payments and instant transfers. These make it easier for people to pay for goods and services.
OPay also works with other tech firms. This helps them stay ahead in the fast-changing fintech world.
Economic empowerment
OPay does more than just handle money. It helps people start and grow small businesses.
The app offers small merchant loans to traders and shop owners.
During the pandemic, OPay helped keep money flowing. People could send cash to family members stuck at home. This was crucial when many lost their jobs.
The company’s services have led to new jobs. Many Nigerians now work as OPay agents, earning money by helping others use the app.
Challenges and opportunities
OPay faces several hurdles but also has room to grow.
The company must navigate complex regulations, fierce competition, and changing market conditions.
Regulatory environment
The Central Bank of Nigeria plays a big role in shaping OPay’s future. They set rules for fintech companies. These rules can help or hurt OPay’s growth.
OPay needs to follow strict rules about money transfers and user data. This can be tough, but it also shows they’re trustworthy.
The ban on motorcycles in some parts of Nigeria hit OPay hard. They had to stop their bike-hailing service. But this pushed them to focus more on financial services.
Competitive landscape
OPay faces stiff competition in the Nigerian fintech market. Companies like Paga and Flutterwave are also trying to win customers.
To stand out, OPay is becoming a “super app”. This means they offer many services in one app. You can pay bills, shop, and send money all in one place.
OPay’s big advantage is its huge user base. Millions of Nigerians already use the app. This makes it easier for OPay to introduce new services.
Future outlook
The African fintech market is growing fast. This gives OPay lots of chances to expand.
OPay’s current high valuation shows that investors believe in its future. But to keep growing, OPay needs to keep innovating.
One big opportunity is reaching people who don’t have bank accounts.
OPay can help more Nigerians access financial services.
OPay also plans to expand to other African countries. This could help them grow even bigger.
OPay FAQs
Is OPay legit?
Yes, OPay is a legitimate app. It’s a registered fintech company that provides payment solutions, money transfers, and other financial services. (tos)
Is OPay good for saving money?
OPay offers savings features that can be beneficial for users.
The app claims to make savings more rewarding and offers cashback on certain transactions.
However, as with any financial app, it’s important to consider the security aspects and be aware of potential risks.
Can I get money from OPay?
Yes, you can receive and withdraw money using OPay.
The app allows for money transfers and withdrawals.
However, users should be cautious and avoid sharing sensitive information like OTPs, PINs, or passwords to prevent unauthorized access to their accounts.
Is OPay a loan app?
OPay is not a loan app, but it does provide Merchant Loans.
This service allows registered merchants to access loans ranging from N2,500 to N5 million.
These loans can be short-term (due the next day) or long-term (28–42 days).
The process is streamlined within the OPay app, where merchants can apply for loans without needing collateral or guarantors
