• Monday, December 04, 2023
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eTranzact on path to recovery as profit hits N455m in 2021

eTranzact on path to recovery as profit hit N455.7m in 2021

eTranzact International Plc, a payment technology provider has released its 2021 audited results reporting a profit of N455.7 million in 2021, from a loss of N1.9 billion in 2020.

According to the company, its core switching and enterprise payment solution services contributed to the overall financial performance.

Wole Abegunde, the chairman at eTranzact in his speech at the 18th Annual General Meeting (AGM) of the firm held last week said the core switching business is the fulcrum to its success.

“The impressive performance was underlined by the increased drive of the company’s core switching business,” he said.

Abegunde noted that the business of the company is consolidated on the gains achieved in 2021 to further improve the company’s performance, market share, and competitive advantage.

Similarly, Olaniyi Toluwalope, the managing director and chief executive officer at eTranzact noted that last year marked a turnaround from the weak financial performance in the previous year.

“The switching service witnessed promising growth during the year, which significantly improved the revenue and profitability of the year,” Toluwalope said.

He further added that the enterprise payment solution services also contributed significantly to the overall performance. “The performance of the enterprise payment revenue line was further aided by the increased scope of salary disbursements and non-statutory deductions and remittances under the IPPIS system.”

Read also: eTranzact sees resolving 70mn unbanked population increasing market participation

Apart from the profit recorded, the company’s revenue increased by 3.7 percent to N23.6 billion in 2021 from N22.7 billion in 2020, gross profit improved by 144.7 to N2.8 billion, and shareholders’ funds recorded a profit of N2.4 billion from a loss of N1.6 billion and share capital grew by 58 percent to N3.3 billion.

Last year also marked a major milestone for the company; it was one of the major payment processors for the National Cash Transfer programme.

“We provided payment services across some of the states of the federation for the disbursements of funds to different households and beneficiaries under the scheme,” Toluwalope said.

He added that they were also appointed by the Federal Ministry of Agriculture and Rural Development in 2021 as the payment provided to deploy a solution for the subsidy payment to farmers.

“The primary objective was the disbursement of fertilizer subsidies to over one million smallholder farmers for the 2021 wet season farming.”

“The company partnered with the Military Pension Board (MPB) on the development of a validation and verification application service for pensioners during the year,” He concluded.

The COVID-19 pandemic has changed the e-payments landscape and hastened the adoption of instant payments as people switch to electronic channels for funds exchange.

According to the National Bureau of Statistics (NBS), electronic transactions in Nigeria surged year-on-year by 66 percent to N330 trillion in December 2021 from N199 trillion at the end of 2020.

Abegunde said, “The Nigerian electronic payment industry is still poised for further growth as alternative payment channels evolve, even with more players keying into providing contactless payments.”