• Monday, May 27, 2024
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GTCO’s HabariPay profit rose to N2.17bn in 2023

GTCO’s HabariPay profit rose to N2.17bn in 2023

HabariPay, the fintech subsidiary of Guaranty Trust Holding Company (GTCO) reported N2.17 billion profit after tax in 2023.

A BusinessDay analysis of the financial report of the tier-one bank showed that HabariPay grew its profit by 159 percent from N836 million reported in 2022.

The statement revealed that HabariPay’s rise in profit was derived from the fintech streams of revenue ranging from its net commission recognised on merchant service charged to transaction value processed, and sales margin recognised on bills payments i.e., airtime vending, and bulk SMS.

A further breakdown of the report revealed that last year, the fintech company’s operating income increased by 213 percent to N4.7 billion from N1.5 billion in 2022. Its operating expenses increased to N2.4 billion from N597 million.

The core business operation of the fintech cashflow rose by 778 percent to N641 million last year from N73 million the previous year
HabariPay said in its financials that the business core operations include a payment gateway – payments processed via virtual accounts, USSD, card, and bank transfer channels.

It also includes switching verticals, value-added verticals – bill payments for airtime vending, and distribution of bulk SMS processed through Value Added Service Aggregators licensed by Nigeria Communications Commission.

GTCO launched the fintech firm in 2018 as a super-app. In June 2021, HabariPay was officially launched as the first mobile platform in Nigeria to be floated by a financial institution.

When Guaranty Trust Bank transitioned from its standalone commercial banking structure into a holding company, it made HabariPay a standalone business offering payments, a marketplace, and small business services.

GTCO said, “HabariPay Limited (Habari), is fast proving to be a dynamic force in the financial technology landscape, embodying innovation, and empowerment in the digital economy.

“Habari specialises in secure payment gateways for seamless local and international online transactions. Committed to empowering Africans in the digital era, Habari fosters economic growth and inclusivity across diverse sectors.”