E-commerce in Nigeria has experienced drastic changes over the last couple of years. These changes have stemmed from technological improvements, strategy implementations and fintech evolutions. Fintech has come to gain much ground in the e-commerce sector and even all forms of trading in general. This has led to an increase in the demand for financial technologies and software that help make trade and payments more bearable for people. The “big” names in the fintech space such as Paystack and Flutterwave have constantly improved on their models to provide the best possible services to their customers.
To a great length, these innovations tend to have lasting impacts on e-commerce. In this article, I will highlight the key impacts I think fintech has made one-commerce in Nigeria.
Optimized payments
Undoubtedly, fintech has encouraged digital/online payments. Presently people can purchase items without having to stand in long queues in the bank to withdraw or make payments. The buyer‘s journey is fully completed digitally, from the point of awareness to purchase. It is now so convenient to order and pay online. Even when you have to walk into a store to buy a product, you can easily make payments via digital payment platforms like the POS, which allows you to complete your purchase without cash. Now, more people are making purchases and businesses are making more sales. It is definitely a win-win for all parties involved.
Optimized reach
With innovations in fintech, more of the unbanked population in Nigeria is reached. Contrary to the traditional banking system that requires loads of paperwork, registrations and sheer bottlenecks, fintech has made banking easier.
People are now able to open bank accounts from the most remote places, apply for loans, transfer money and make payments. The technicalities of banking have largely reduced, with more people in the banking system. What does this mean for e-commerce? It translates to the fact that it is more convenient for businesses to sell their products and collect payments from customers, wherever they may be. With fewer limitations, e-commerce businesses and platforms are out to boom even more.
Increased foreign trade
Truth be told, if Nigeria were to continue with the traditional banking and payment system, it would have been almost impossible to get our e-commerce space recognised by foreign traders.
This is because the restrictions on payment and trade will hinder foreign collaborations. However, with the current innovations in fintech, more foreign collaboration is encouraged. Now there is a provision for global transfers and flexible digital solutions that can help run payments as smoothly as possible.
With the establishment of fintech companies and the constant innovation in the fintech space, serial technological advancements have been recorded. More fintech companies are springing up, not just for the banking sector, but in several other sectors like communications and logistics. Nigeria has become a home for fintech giants, with unicorns emerging. E-commerce has never seen better days than these, and statistics have shown that it can only get better with these constant innovations. So, do you run an e-commerce business or any business at all? Be sure to incorporate fintech solutions, as it is the next big thing!
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