Visa acquires stake in Nigeria’s Interswitch

Interswitch Visa investment

Nigerian digital payments firm Interswitch confirmed today it has reached unicorn status after Visa acquired a minority equity stake in the firm. Global payments giant Visa will invest $200 million for 20% stake in Interswitch, electronic payments company, UK’s Sky  News reports. The investment places a billion-dollar valuation on 17-year old Interswitch and is a major boon ahead of a proposed initial public offering slated for  the London Stock Exchange next year. “The investment makes Interswitch one of the most valuable African fintech businesses with a valuation of $1 billion,”…

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Tala Microloan Startup gains $110 Million In latest Funding

Mobile-based lenders pose money laundering risk, says CBK

Tala, a Los Angeles startup that makes microloans to consumers and small business owners in emerging markets, is announcing today that it has raised $110 million in funding. The new Silicon Valley venture capital firm RPS Ventures, cofounded by Kabir Misra, former managing partner at Softbank’s $100 billion Vision Fund, is leading the round. Tala’s backers include PayPal, billionaire Steve Case’s VC firm Revolution, Chris Sacca’s Lowercase Capital and Data Collective, among others. The new funding values Tala at nearly $800 million, according to an investor. Tala has raised more…

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Regulate? Mobile-based online lending firms may be money laundering channels says Central Bank of Kenya governor

Mobile-based lenders pose money laundering risk, says CBK

Mobile-based online lending firms should be regulated to avoid their usage as channels for introducing illegally-obtained cash into the financial system, Central Bank of Kenya governor Patrick Njoroge has said. In a presentation to parliamentarians Wednesday, Dr Njoroge singled out Tala, Branch and Okash — three highly-popular digital money lenders — as credit-only mobile lending institutions that could be easily used to launder illicit cash. Money laundering, which involves transferring and disguising illegally obtained cash to make it look legitimate, is mostly used by criminals and the corrupt to clean…

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Unregulated digital apps loans, consumer protection among emerging issues that require attention- CBK Kenya Study

Safaricom

The 2019 FinAccess Household Survey report presents results of data collected during October – December 2018 covering 11,000 households across the country. The survey targeted individuals aged 16 years and above, from scientifically selected households, designed to provide significant estimates at the national and regional level and by residence (rural and urban areas). The 2019 survey focussed more on the usage, quality and impact/welfare dimensions of measuring financial inclusion. In addition, the questionnaire incorporated a needs-based framework to the measure the relevance of financial services and products; financial health and…

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