Technology adoption can tackle SMEs' funding challenges - Payaza CTO

The Chief Technology Officer of a financial technology company, Payaza, Mr Philips Akinyele, tells LAOLU AFOLABI the technological strategies to address challenges faced by Small and Medium Enterprises

What key technological strategies are you spearheading to address the challenges SMEs face in accessing funds?

At Payaza, our technological strategies are centred on enhancing financial inclusion for SMEs across Africa. We understand that access to financial services is critical for business growth and sustainability, particularly in emerging markets. Our approach is built on three key pillars: accessibility, security, and innovation.

We have developed a comprehensive suite of services that encompass both online and in-person payment capabilities, ensuring businesses can seamlessly send and receive payments across various channels. This includes support for mobile money, bank transfers, card payments, and QR code-based transactions, providing flexibility and convenience for businesses and their customers. Real-time transaction tracking and detailed reporting tools further empower SMEs to manage their cash flow efficiently.

Security is at the core of our payment solutions. We leverage advanced encryption technologies and adhere to global compliance standards to protect user data and transactions, giving businesses peace of mind. In addition to facilitating payments, we offer specialized services like Payaza Boost, designed to empower SMEs by providing access to short-term loans with low interest rates and flexible repayment terms. This initiative addresses the working capital challenges that many small businesses face, enabling them to overcome financial barriers, manage seasonal fluctuations, and seize growth opportunities. Payaza Boost also includes a streamlined application process, ensuring quick and hassle-free access to funds.

Our platform integrates with popular accounting software and business management tools, allowing SMEs to automate processes and gain insights into their financial health. We are also committed to financial literacy, offering resources and training to help entrepreneurs make informed financial decisions.

Ultimately, our mission is to create a financially inclusive ecosystem where SMEs can thrive, drive innovation, and contribute to the broader economic development of Africa. By continually evolving our services based on market needs, we aim to remain a trusted partner in the growth journey of African businesses.

You mentioned that technology still feels distant for many SMEs in Africa. What are the main barriers to effective tech adoption for SMEs?

The main barriers include several interrelated factors that hinder effective adoption. One is limited digital literacy. Many SMEs lack the technical skills needed to adopt, use, and maximise the benefits of advanced digital solutions. This gap is particularly evident in regions where formal training opportunities are scarce, making it challenging for business owners to navigate digital platforms, software, and tools effectively.

Two, high costs. The upfront expenses associated with acquiring, implementing, and maintaining technology can deter smaller businesses, especially those operating on tight budgets. These costs may include hardware purchases, software licenses, and ongoing maintenance fees, which can strain financial resources.

Three, infrastructure gaps. Inconsistent and unreliable internet connectivity, along with frequent power outages in some regions, significantly limit SMEs' ability to adopt and sustain digital solutions. These infrastructure challenges create barriers to accessing cloud-based services and conducting real-time digital transactions.

Also, there are trust issues. Concerns about data security, privacy, and the risk of fraud often cause SMEs to hesitate in adopting digital solutions. Many business owners worry about safeguarding sensitive information and navigating online transactions safely.

Payaza has the A1 short-term and BBB+ long-term ratings. What differentiates your firm's technology and approach to payments from others in the region?

Payaza stands out due to localised solutions. Our technology is built with a deep understanding of African markets, addressing their unique payment and operational challenges. Also, there is flexibility and scalability. Our tools grow alongside SMEs, ensuring they remain relevant as businesses expand. Another point is the seamless integration, as Payaza easily connects with other platforms, reducing friction for users. The firm also focuses on inclusivity. We prioritise underserved areas, extending financial services to previously excluded businesses. These factors, combined with our A1 short-term and BBB+ long-term ratings, reflect our reliability and commitment to excellence.

Only six per cent of Africa's SDG 2030 targets are on track. What's your opinion on how technology can address this?

Technology plays a pivotal role in accelerating progress toward the Sustainable Development Goals by fostering innovation, improving access to resources, and creating opportunities for inclusive growth. Technology makes an impact by enhancing financial inclusion. Digital tools break down barriers to financial services, especially for SMEs, by providing access to credit, savings, and investment opportunities. Mobile banking, digital wallets, and peer-to-peer lending platforms empower small businesses to manage their finances, invest in growth, and participate in the broader economy. This directly supports SDG 8 (Decent Work and Economic Growth) and SDG 1 (No Poverty).

Technology also drives sustainability. Technology enables the adoption of renewable energy solutions and supports businesses in reducing their carbon footprints. Smart grids, energy-efficient technologies, and digital platforms that monitor and optimize resource use contribute to climate action and environmental sustainability (SDG 13). Innovations like IoT devices help businesses track and reduce waste, promoting responsible consumption (SDG 12).

It also improves education and skills development. Online learning platforms and digital training tools make education accessible to entrepreneurs, enabling them to upskill and become more competitive in global markets. These platforms provide courses on business management, marketing, financial literacy, and emerging technologies, contributing to SDG 4 (Quality Education). They also foster lifelong learning, empowering individuals to adapt to changing market demands.

Technology fuels innovation in critical industries such as agriculture, healthcare, and logistics. For example in agriculture, precision farming and digital marketplaces improve productivity and market access, supporting SDG 2 (Zero Hunger). In healthcare, telemedicine and digital health records enhance access to quality care, advancing SDG 3 (Good Health and Well-being).In logistics, AI and blockchain streamline supply chains, reducing inefficiencies and promoting economic growth.

At Payaza, we integrate these transformative elements into our approach, ensuring that our solutions not only address immediate business needs but also contribute to long-term developmental goals. Through our efforts to enhance financial inclusion, support sustainable practices, and foster innovation, we align with global SDG targets, helping SMEs thrive while driving positive social and environmental change.

Please share examples of how technology can transform a business or sector in a significant way

Technology has the power to revolutionise the retail sector, agriculture, healthcare, and a lot more. For the retail sector, digital payment systems reduce reliance on cash, streamline inventory management, and provide data-driven insights for decision-making. For agriculture, precision farming tools and digital marketplaces help farmers optimise yields, connect with buyers, and reduce post-harvest losses. In healthcare, through telemedicine platforms, access to care can be expanded in underserved areas, creating opportunities for SMEs in the health sector to thrive. These examples highlight how technology not only improves operational efficiency but also drives innovation and creates new growth opportunities.

Payaza is operational in 19 African countries, North America, the UK, and the Middle East. How does the company's technology enable SMEs to access these global markets seamlessly, and what trends are you noticing in cross-border payments for African SMEs?

Payaza's technology supports SMEs in cross-border payments, by providing cost-effective and transparent payment solutions that simplify transactions across regions. It supports a digital presence. Our tools help SMEs establish an online presence, making them more visible and accessible to international clients. Also, our built-in tools ease the complexities of operating across multiple jurisdictions. We're noticing an increasing demand for faster settlements, lower transaction fees, and real-time data insights, signalling a shift towards a more integrated financial ecosystem for African SMEs.

What innovations or shifts in payment technology do you believe will have the biggest impact on SMEs in Africa over the next three to five years?

In the next three to five years, the most impactful innovations will include AI-driven financial insights: like blockchain technology, which ensures transparency and reduces costs in cross-border transactions; digital wallets and mobile money will continue to dominate as SMEs prioritise ease and accessibility. Also, offering SMEs access to financing directly within payment platforms will streamline operations and empower businesses to grow sustainably.

Can you share more about Payaza's grant programme for SMEs? What criteria do you use to select SMEs, and what impact do you hope these grants will have on their growth and access to markets?

Our grant programme focuses on selection criteria as we prioritise SMEs with innovative ideas, scalable business models, and a demonstrated need for financial support. Also, the grants aim to foster growth, improve market access, and enable these businesses to adopt new technologies. Ultimately, we want to create a ripple effect where successful SMEs uplift their communities and contribute to broader economic development.

What is your firm's long-term vision in terms of fostering an inclusive financial ecosystem for SMEs?

Payaza's long-term vision is to create an inclusive financial ecosystem where every SME, regardless of size or location, can access tools and resources to thrive. This includes expanding financial inclusion through accessible digital platforms, promoting cross-border trade by simplifying payments and reducing costs, and investing in SME education and skills development to enhance their competitiveness. As CTO, my role will evolve to anticipate emerging trends, foster innovation, and lead the development of adaptable, cutting-edge technologies that address the dynamic needs of SMEs. This involves collaborating with partners, leveraging data to inform strategies, and ensuring Payaza remains a trusted ally for African businesses in their growth journeys.

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Mobile banking, digital wallets, and peer-to-peer lending platforms empower small businesses to manage their finances, invest in growth, and participate in the broader economy.