Nigerian digital lender Payhippo has acquired Maritime Microfinance Bank, a financial institution that offers loans, supports investments and accepts deposits and savings.
Although the Central Bank of Nigeria (CBN) is yet to approve this acquisition, Payhippo says this acquisition will enable them to directly access Nigeria’s Inter-bank Settlement System (NIBSS).
Maritime, founded in 2014, is a traditional financial institution that offers lending to micro businesses (which include freelancers, solo entrepreneurs, and side hustlers) and SMEs (which include businesses with up to 500 employees) in the maritime industry. But PayHippo’s acquisition of Maritime will help the MFB expand into new sectors.
Following this acquisition, Payhippo merchants will be able to accept deposits and send and receive money across various commercial banks in Nigeria.
First-time entrepreneurs in Africa often have a hard time raising capital, by way of credit, from traditional lenders. These cash-strapped founders are discouraged by financial bureaucracy, high interest rates and hard-to-meet collateral requirements.