Aladdin Digital’s CEO, Mr. Darlington Onyeagoro, has expressed that the Nigerian fintech industry is approaching saturation, with numerous players offering similar services.
During an interview on the Nairametrics radio show, Business Half Hour, he emphasized that the battleground for Nigerian fintech companies has expanded to encompass the entire African continent.
In response to this evolving landscape, Onyeagoro revealed that Aladdin, which initially introduced social commerce banking in Nigeria, is now shifting its focus to become a global payment infrastructure provider for Africa.
He highlighted the challenges of starting a similar business today, indicating that it would require a substantial investment in the millions of dollars to gain recognition in a market saturated with competitors.
Describing the current fintech space in Nigeria as a “red ocean,” Onyeagoro stressed that newcomers must either bring a unique and disruptive offering or possess substantial funds to establish their presence in the market.
He cited the example of Aladdin’s beginnings in 2020, which relied on support from friends and family due to the absence of substantial funding.
Furthermore, Onyeagoro discussed the company’s new mission to facilitate seamless and cost-effective payments across Africa.
He emphasized the importance of wallet-to-wallet transactions as a means to reduce the high average cost of sending money within the continent, which currently stands at 15%.
By envisioning a scenario where individuals across Africa use the Aladdin app with integrated wallets, he anticipates the possibility of zero-cost intra-Africa transfers, akin to inter-bank transfers.
Aladdin’s system is designed to onboard users from 180 countries worldwide, offering the capability to validate government-issued IDs, directors, and shareholders for individuals and businesses in various African nations.
This approach is expected to simplify and reduce the cost of cross-border payments within Africa, as the system can seamlessly convert between different currencies within the same ecosystem.
In summary, Aladdin Digital’s strategic shift towards becoming a pan-African payment infrastructure provider is a response to the highly competitive and saturated nature of the Nigerian fintech market, and their focus on wallet-to-wallet payments aims to make cross-border transactions within Africa more efficient and affordable.
