Edwin Okoro is the Managing Director and CEO of NetApps Technology Limited. In this interview with Cynthia Egboboh, Business Correspondent at BusinessDay, he discussed how Netapps impacts the fintech industry through innovative products, strategic collaborations, and robust security measures.
He also shared his perspective on how NetApps is working to enhance the financial experience for Nigerians, and his optimism for the industry’s growth. The conversation also highlighted the company’s positive outlook on regulatory efforts and their impact on the sector. Here are some key excerpts from their discussion.
Can you talk to us about Netapps and the journey so far?
“Our journey really took off in April 2022 when we received our license from the Central Bank of Nigeria to operate as a payment solution service provider. Before that, we saw a significant gap in how payment solutions were being handled, especially during the implementation of the cashless policy. Many existing solutions were failing to provide reliable and efficient payment facilitation.
We noticed that the current infrastructure was often clumsy and inefficient, so we decided to step in and offer a better solution. Our primary goal was to create a robust payment gateway, which we call NetappsPay. This gateway is designed to support multiple channels and ensure 99.9% availability for services, especially in revenue collection and payments.
In the Nigerian market, very few fintech companies offer a payment gateway, and many of the global players use white-labeled solutions. We wanted to stand out by building our own gateway from scratch, to do so we had to integrate with major players like MasterCard, Visa, American Express, and UnionPay. Additionally, we’ve collaborated with local firms like InterSwitch and e-Transact to strengthen our infrastructure.
One innovative aspect of our approach is the integration of NFC technology directly into our payment gateway. Instead of requiring a separate app for NFC functionality, we’ve built this feature into our gateway, allowing developers and merchants to use NFC capabilities seamlessly through our API. This forward-thinking model helps us scale effectively within the developer community and the broader payment space, positioning us ahead of the curve as POS systems become outdated.
How can Nigerians harness this product to ease their daily transactions?
Nigerians can simplify their daily transactions with Netapps’ flagship product, the Netapps Marketplace app. Available for download on both the Apple and Google Play Stores, this super app integrates all nine of our financial products into one convenient platform.
For everyday users, the Netapps Marketplace offers a range of features designed to streamline financial tasks. For example, you can schedule payments to automatically transfer funds at set intervals, ensuring you never miss a payment or spend money impulsively. The app also includes cashback rewards, where you earn money back on your purchases and even on transactions made by people you refer to the platform.
Additionally, the app features a virtual kiosk that benefits both individual users and businesses. Supermarkets, SMEs, and POS agents can manage their sales and inventory from their smartphones, eliminating the need for multiple POS devices and manual paperwork. This virtual kiosk enables smooth operations and efficient financial management.
Netapps Marketplace is designed to be user-friendly and secure, with added gamification features, the fast finger that makes managing your finances engaging. For more information and to explore all available products, visit https://netapps.ng
Like other fintechs Apps, are customers going to get an account number to be able to use this App?
Yes, customers will receive an account number when they sign up for any of our products. We have partnered with Wema Bank and Providus Bank, so users can be assigned an account number from one of these banks based on availability at the time. This allows you to easily fund your account through your preferred banking app and perform transactions seamlessly.
We are also planning to expand our partnerships. In the near future, we aim to collaborate with more banks, including Sterling Bank, to give users even more options.
However, we offer users other methods of funding their account using the payment gateway via the card or via PushPay.
With the rise of open banking, we’re excited to integrate with various banks, letting users choose their preferred institution for managing their money.
Our fees are designed to be competitive and affordable, thanks to our extensive partnerships. We’re committed to providing not only convenience and security but also great value for your money. As we grow, expect more collaborations with banks and payment service providers to enhance financial inclusion and bring even more benefits to our users.
What are the measures put in place to ensure safety of customers’ funds, data?
Security measures have been factored into the app; there are a whole lot of security models that are built into it.
We talked about two factor authentication, we talked about the PIN, we talked about the 3D secure, the NDIC coverage covered by the banks we are in partnership with, our payment gateway is PCI-DSS compliant to ensure extra security, and so on and so forth. All of those are to ensure that the consumer funds are well protected.
What are the gaps you have noticed as an operator in Nigeria’s Fintech space?
In Nigeria’s fast-paced fintech ecosystem, we have observed several areas that still need improvement. While the industry is brimming with innovation, there are ongoing challenges, particularly concerning the efficiency of end-to-end transaction processes.
One notable gap is in how transactions are completed. Currently, systems like the Nigerian Interbank Settlement System (NIBSS) and Universal Payment (UP), both licensed by the Central Bank of Nigeria (CBN), play crucial roles in facilitating fund transfers. Although we’ve integrated with UP to move funds between points, we’re not yet utilizing them as a payment service aggregator. We believe that strengthening our partnership with UP and NIBSS will address existing issues in finalizing transfers and enhance service quality for consumers.
Moreover, NIBSS’s expansion into other African countries with initiatives like AfriGo is promising. This development could significantly ease cross-border payments within the African continent, and we’re eager to leverage this technology to benefit our users.
On the regulatory front, the fintech sector has faced its share of challenges. Initially, stringent regulations seemed to hinder innovation. However, as regulators gained a deeper understanding of startup dynamics, they adapted, which has been beneficial. The current policies under the Cardoso-led government are favorable, and we’re optimistic about the future.
We’re also seeing positive changes with increased involvement from the Securities and Exchange Commission (SEC) in the blockchain and cryptocurrency sectors. Their evolving stance, coupled with greater focus on consumer protection and regulation of loan companies, reflects a growing commitment to supporting and regulating the fintech space effectively.
Overall, while there is still progress to be made, the evolving landscape of regulation and technology is paving the way for more robust solutions and greater financial inclusion. We look forward to continued collaboration and enhancements that will better serve the underserved and underbanked populations.
What is the sustainability plan for Netapps?
Netapps is dedicated to long-term sustainability through innovative features and deep engagement with both employees and users, particularly the youth and Gen Z. A unique aspect of our approach is that our employees are also stakeholders in the company, which helps ensure that both seasoned team members and fresh perspectives contribute to our ongoing success.
To keep our platform dynamic and appealing, we’ve integrated a range of features designed to captivate and retain users. These include daily bonuses, vouchers, cashbacks, and an exciting referral program. We’ve also added gamification elements, letting users engage in fun games and win money, which is especially appealing to the younger generation.
Our sustainability plan involves forming strategic partnerships with a variety of companies to enhance our offerings and deliver even more value to our users. By continually evolving and introducing new tools, we ensure our platform remains fresh and relevant.
One standout feature is our Payment Link, designed with youth and Gen Z in mind. This tool simplifies transactions for individuals and small businesses, allowing them to collect payments effortlessly without disclosing their account details. For instance, a young entrepreneur running a clothing line can generate a payment link for a product, share it on social media, and enable customers to pay directly, all without needing to share their bank account number.
We are excited about the future and the continuous enhancements we plan to roll out. Starting October 1st, users can look forward to even more rewarding experiences, including the fast finger features. Our goal is to provide an engaging, user-friendly platform that people will enjoy and rely on for their daily transactions.
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