Brazilian fintech unicorn Ebanx is expanding to Africa’s most dynamic markets

Brazilian fintech company Ebanx has expanded to Africa. In doing so, Curitiba-based Ebanx hopes to replicate its rapid growth in Latin America by placing a greater emphasis on digital payments.

Ebanx began operations in Kenya, South Africa, and Nigeria at the end of August, as demand for mobile payments has surged in recent years.

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“These countries represent more than 50% of the continent’s GDP, a third of Africa’s population, and are experiencing an explosion in the adoption of digital services,” Paula Bellizia, a global payments expert at Ebanx, told Reuters.

According to the report, the company will initially focus on mobile money, a system that allows users to exchange and store money on their cell phones.

Ebanx has been offering digital wallets – payment applications on cell phones – to Brazilian consumers on a trial basis since 2020.

According to a report published in June by Endeavor and McKinsey, the continent’s digital economy has an estimated market volume of US$115 billion.

In Latin America, digital commerce has accelerated digital payments.

In Africa, digital payments will drive digital commerce. There is a trend toward e-commerce in Africa, just as there was in Latin America eight years ago,” Bellizia said.

The Brazilian startup, valued at more than US$1 billion, is also seeking agreements with major e-commerce merchants to offer payment services on the continent.

In Latin America, the company processes payments for companies such as Airbnb, Shopee, and Uber.