The “okada” (bike transportation business) ban on Chinese company OPay affected the company so greatly, but it has moved on to do other businesses. The payment business diversified into delivery and put its motorcycles up for sale. Its most recent partnership is with WorldRemit, a leading global digital payment platform to offer international money transfers directly into OPay mobile wallets in Nigeria.
OPay had launched into the Nigerian market In May 2019 with ORide, its ride-hailing service that significantly impacted the transportation sector of the country. However, this was short-lived as tables turned when the state government of Lagos crippled the activities of bikes in major parts of the state. On March 30, the entire country was in a lockdown before the business gradually dwindled. As at now, the company has put up all its bikes on sale and is now on a partnership cruise with WorldRemit.
The partnership between both payment firms will provide a platform for Nigerians to receive money swiftly from over 50 countries including the United States, Canada and the United Kingdom directly into their mobile phones.
The Director, Kunle Olamuyiwa noted that the companies have begun operations with over 300,000 agent locations spread across the country. “With our seamless technology, OPay provides Nigerians with a much more comfortable and faster option for customers to receive money in the comfort of their homes.”
Inclusive of this easy access to funds from overseas is another exciting opportunity for customers to save and invest their money in its FlexiFixed service which launches in September. The service is available to all OPay customers on KYC 2 level and above and offers up to 12% returns per annum.
“This partnership ensures that customers can continue to make affordable money transfers to their family and friends in the comfort of their homes. Together, WorldRemit and OPay are disrupting traditional money transfer methods by delivering services that customers can access 24/7 via smartphones at their convenience. I’m pleased to share that we’ve reduced prices in 48 corridors and passed the savings onto our customers. With communities across the world having to change their lifestyles due to the disruption caused by Covid-19, we’re proud to play our part in making sure our customers can continue to support their family and friends throughout this challenging time.”
The service is available for download on the Google Play store and iOS store for interested customers to download the app. They can immediately upgrade to KYC level 2 to instantly access the device to enable them enjoy the 12% return yearly. It’s almost certain that governmental policies will not have a say in the new found partnership like they did with the ride-hauling business that crippled the firm’s finances.
OPay in Nigeria is a subsidiary of the Opera Group of Companies, developers of the popular web browser, Opera. The Financial technology platform currently has a network of 300,000 agents, 5 million registered app users with other related financial services, all ready to serve Nigerians waiting for a swift transaction.
The remittance market is still very huge as it is estimated about 25 million overseas working Africans remitted over $46b in 2018 alone. But according to PWC, in 2018, migrant remittances to Nigeria equalled US$25 billion, representing 6.1% of GDP. This also represents 14% year-on-year growth from the $22 billion receipt in 2017. The 2018 figure translates to 83% of the Federal Government budget in 2018 and 11 times the FDI flows in the same period. This makes Nigeria a big remittance market considering the number of Nigerians living abroad. You can read the full PWC report on the strength of remittance to the Nigerian economy below;