BlocPal International Inc., a leading digital transaction platform whose mission is to improve the affordability and accessibility of financial products and services, has signed a Memorandum of Understanding with its majority-owned Nigerian subsidiary, PayPassage. The intent is to leverage BlocPal’s powerful platform to drive financial inclusion in Nigeria.
Currently, Nigeria is one of the top three unbanked countries globally, with almost half (45 percent) of Nigerian adults having no access to a bank account.1 Out of the 59 million unbanked adults, 73 percent do not have the required documents to open a tier 3 bank account.2 This current financial landscape is expected to be a significant opportunity for BlocPal and PayPassage to uplift and integrate financial services in Nigeria. With BlocPal anticipating to drive financial inclusion to unbanked and underserved populations in India, Mexico, and Indigenous communities in Canada, PayPassage marks BlocPal’s first launch in Africa which positions BlocPal to become a leading provider of accessible financial solutions in Nigeria and globally in underserved markets.
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“There has been a strong need for offering affordable and accessible financial solutions in Nigeria through a retailer-enabled digital platform,” says Folarin Tomori, CEO of PayPassage. “Partnering with BlocPal to bring these financial solutions into Nigeria is not only expected to drive financial inclusion but also provide the opportunity for the Nigerian population to participate in the global digital economy.”
BlocPal is leveraging the advanced technology and proven business model it has used in India with mBnk. This same marketplace is expected to offer mobile financial services through physical on-the-ground retailers in Nigeria to help drive financial inclusion in Nigeria’s communities. This solution is intended to provide a range of mobile financial solutions, including the ability to deposit and withdraw funds, execute domestic money transfers, purchase prepaid credit cards, micro-loans, savings plans, and mobile and wallet recharges. This marketplace is expected to enable a one-stop solution for the broader community in Nigeria, allowing them to access a range of financial solutions, with the opportunity to expand product offerings in the future.
“What makes BlocPal so unique is the ability to scale our platform to different geographies while adhering to customer needs and regulatory requirements,” says Nick Mellios, CEO of BlocPal. “We are excited to leverage our insights and experience from our India operations and bring our advanced technology to Nigeria. We are committed to partnering with retailers in Nigeria and providing a wide variety of affordable financial solutions to communities all across the country.”
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With 89 percent of the Nigerian population already having access to borrow or own a phone,3 Nigeria is ripe for the financial integration that BlocPal and PayPassage can bring. BlocPal offers unique accessibility and scalable infrastructure to integrate into the Nigerian economy easily. Leveraging this technology, BlocPal and PayPassage believes that it can bring these solutions into other countries in Africa by delivering digital payment processing and fintech services to help enterprise partners reduce transaction costs, create new revenue streams, and build more loyal relationships with its customers. PayPassage is in the process of reviewing the regulatory requirements applicable to its proposed activities in Nigeria and intends to obtain the necessary regulatory approvals or licenses before commencing such activities.
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