Optasia Expands Merchant Lending As Fintechs Pivot To Productive Credit

The African fintech industry is increasingly shifting from short-term consumer lending to financing small businesses, as operators respond to growing regulatory scrutiny and efforts by governments to channel more credit into productive sectors of the economy.

Industry analysts say the emerging trend is expected to strengthen access to finance for Micro, Small and Medium Enterprises (MSMEs), which continue to face significant funding constraints despite accounting for the bulk of businesses and employment across Africa.

The renewed focus comes as global AI-driven fintech firm Optasia unveiled its first merchant lending platform as part of a broader expansion strategy across emerging markets.

In its interim trading update for the six months ended June 30, the company said its Mobile Financial Services (MFS) business now contributes about 72 per cent of group revenue, supported by strong growth in Ghana, Pakistan, Indonesia and Congo-Brazzaville, which helped offset temporary disruption to airtime credit services in Nigeria.

The company also announced that it had “successfully launched its first merchant lending proposition, which will be rolled out across its existing footprint,” marking a strategic expansion beyond consumer-focused digital credit.

Optasia said preliminary figures indicate revenue growth of between 50 and 60 per cent, adjusted EBITDA growth of 40 to 50 per cent, and normalised net income growth of 30 to 40 per cent during the first half of the year.

It added that following the resumption of airtime credit services in Nigeria after their temporary suspension earlier this year, it now expects full-year normalised net income growth of between 25 and 35 per cent, reflecting what it described as “a prudent assumption regarding the pace of recovery of transaction volumes in Nigeria.”

The company’s latest strategy mirrors a broader shift within Africa’s fintech ecosystem, where lenders are increasingly using digital data and artificial intelligence to assess merchants’ cash flows and extend working capital to small businesses instead of concentrating mainly on short-term consumer loans.

The development also aligns with Nigeria’s drive to expand credit to productive sectors of the economy.

The Central Bank of Nigeria has repeatedly emphasised that reforms in the financial sector are aimed at promoting responsible fintech innovation while strengthening consumer protection and supporting sustainable economic growth.

The apex bank has also identified improved access to finance for businesses as a key priority under its reform agenda.

Similarly, the Federal Ministry of Industry, Trade and Investment has identified strengthening domestic productive capacity and improving support for MSMEs as central pillars of its 2026 industrial strategy.

Development finance institutions are also intensifying support for the sector.

The Development Bank of Nigeria recently disclosed that it has disbursed more than ₦1 trillion to over one million MSME beneficiaries and plans to expand financing to two million businesses over the next five years.

Industry experts believe merchant lending could help narrow Nigeria’s financing gap.

Director of Merchant Lending at FairMoney Microfinance Bank, Seun Oyediran, recently said SMEs account for about 96 per cent of businesses, contribute nearly half of Nigeria’s Gross Domestic Product and employ more than 80 per cent of the workforce, yet many remain underserved by conventional lenders because of limited access to structured finance.

Analysts say the growing adoption of AI-powered credit assessment could enable fintech firms to provide working capital based on actual business cash flows rather than traditional collateral requirements, potentially widening access to finance for thousands of merchants across emerging markets.

For operators such as Optasia, the strategy also provides greater diversification beyond consumer digital lending while positioning fintech platforms to support enterprise growth in markets where access to formal business credit remains limited.

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