Nigerian Fintech Kippa hands over KippaPay operations to Bloc

Nigerian fintech firm, Kippa, supported by investors including Saison Capital and Horizone, has executed a significant operational transfer of its agency banking product, KippaPay, to Bloc, a fellow Nigerian fintech poised to introduce banking services.

Although described as a handshake deal by Kippa’s co-founder, this move comes after Kippa ceased the operations of its agency banking product in October.

Bloc, having received approval-in-principle from the Central Bank of Nigeria (CBN) in November 2023, seamlessly integrates KippaPay into GPay, its payment subsidiary. This strategic alignment positions Bloc to leverage KippaPay’s capabilities within its own expanding portfolio.

The decision to shut down KippaPay in October was influenced by the heightened costs of acquiring POS terminals following the Naira devaluation in June. In a fiercely competitive market, Kippa faced challenges in recouping these costs without adjusting the commissions charged to its agents.

According to a recent communication sent to existing users, Bloc has successfully restored full service on KippaPay’s mobile app and Android terminal. The email also provided instructions for users to resume transactions on the agency banking platform.

However, it noted that service restoration is pending for Linux terminals, prompting merchants to return their POS devices to Kippa. Unreturned devices will be onboarded as GPay users, according to a source close to Kippa.

A spokesperson for Bloc confirmed the official resumption of operations and the seamless migration of all agents previously signed up on KippaPay to the new GPay application. They expressed commitment to engaging with over 19,000 agents over the next few weeks to ensure a smooth transition and settlement.

This strategic move underscores the evolving dynamics within the Nigerian fintech landscape and the collaborative efforts of industry players to optimise services and adapt to market conditions.