The Nigerian FMCG market is one of the largest in Africa, opening up huge opportunities for thousands of brands, distributors, and retailers who move millions of essential goods to over 200 million consumers daily. However, there are considerable challenges across the supply and distribution chain due to the offline, fragmented nature of trade across the market. One of the significant challenges facing retailers and distributors is the heavy reliance on cash transactions, which poses both operational and security risks for sellers. Available data shows that cash handling can cost merchants up to 15% of revenue while excluding them from crucial financial services.
Digital payments solve these inefficiencies and can unlock over $4 trillion worth of value across emerging markets. However, many of the currently available digital payment solutions often fall short, lacking compelling value propositions to encourage merchants to switch from cash . To drive the adoption of digital payments and unlock value for the thousands of retailers and distributors across Nigeria, RedCloud launched RedPay™, our proprietary digital payments platform that allows any seller to make and receive digital payments right from their mobile phones, even without a bank account.
We have also partnered with Paystack, one of Nigeria’s largest digital payment providers, to redefine digital payments and unlock new potentials for millions of retailers and distributors. This partnership is a big step in transforming how consumer goods are bought and paid for and will make trading smoother and better for all stakeholders across the supply chain.
Paystack, a licensed Payment Solution Services Provider (PSSP) with the Central Bank of Nigeria (CBN), offers robust payment solutions to businesses across Africa in both B2B and B2C sectors. This partnership will revolutionize the digital payment landscape for the thousands of retailers, wholesalers, and distributors on our Open Commerce Platform by providing access to a range of convenient and secure digital payment options. These include instant bank transfers, debit and credit card transactions, USSD, and QR Codes, all integrated within the Red101 app. This integration streamlines the payment process and significantly enhances transaction safety, ensuring compliance with the Central Bank of Nigeria’s regulatory standards.
Ebere Ogwumoyi, the General Manager for RedCloud Nigeria, expressed enthusiasm about this partnership. “Collaborating with Paystack marks a significant milestone in our mission to modernize trade in Nigeria. It aligns with our commitment to providing secure, transparent, and efficient digital solutions to our customers. This partnership is more than a business integration; it’s a step forward in ensuring that every transaction on our platform is safe, swift, and compliant with regulatory standards,”
RedCloud is shaping the future of trade in Nigeria with our Intelligent Open Commerce Platform, with the goal of helping businesses of all sizes better understand the market and uncover new opportunities. In just a year, RedCloud’s Intelligent Open Commerce Platform has made remarkable headway in Nigeria, now boasting over 200,000 merchants trading on the platform. This rapid adoption is a testament to our platform’s effectiveness and appeal, further evidenced by achieving a remarkable trading volume milestone of over $1.2 billion. These figures reflect our growing presence across the market and underline the tangible impact of Open Commerce in revolutionizing the Nigerian FMCG sector.