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Nigerian credit-led digital banking platform FairMoney has acquired PayForce (sub-brand of YC-backed CrowdForce), a merchant payment services that serves small businesses, as the digital lender looks to broaden its financial services proposition to merchants. As part of the deal, CrowdForce CEO Oluwatomi Ayorinde joins FairMoney, where he will head the company’s payments business unit: PayForce by FairMoney.
The acquisition will provide incentives for PayForce-acquired merchants who use FairMoney as their primary bank, such as an 18% annual return on deposits. FairMoney will also design specific credit products for different sets of businesses, tackling one of the biggest problems facing small businesses in Nigeria, access to loans and working capital.
CrowdForce, through PayForce, provides agency banking services, a branchless banking model that extends financial services to the last mile via a network of human ATMs. FairMoney is an online payday loan app that offers users payday loans for personal or commercial use. The company provides debit accounts and cards, P2P transfers, and payments to over a million retail customers and small businesses.