Pyypl micro-investment platform aims to build a social ecosystem for entrepreneurs across Africa and improve access to digital financial services for informal employment sectors

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UAE-based fintech Pyypl has introduced a new micro-financing platform catering to the needs of African self-employed people, micro, small and middle-sized businesses.

Having raised $20m to expand financial inclusion in the Middle East and Africa in late 2022,?the firm starts to fulfil its strategic plans with the new product that can boost access to digital financial services for the massive economy segments practising informal employment.

Pyypl (pronounced “people”) is a non-bank financial services provider focusing on the Middle East, Africa and Central Asia. The firm uses blockchain in its main processes, currently enabling digital payments for the 800 million underserved smartphone users in the regions of operation.

The launch of the new platform begins with a collaboration with Kenya’s Tuk Tuk Operators Network (TTON) socio-economic platform. This pan-African mobility network connects Tuk Tuk operators in 47 countries.

Tuk-tuks are kind of auto rikshaws driving?a special form of three-wheeled motorcycle. The transfer by three-wheelers is cheaper than ordinary taxis, also showing a competitive advantage over other commercial means of transport e.g. motorcycles or minibuses.

The sector employs a great number of people. However, most of that business is informal and unregistered. Therefore, lack of access to credit remains the biggest challenge for the tuk-tuk operators, getting expensive loans from microfinance institutions, which take years to clear before they can fully own their vehicle.

Micro-investment platform by Pyypl will expedite these operators’ digitalisation using the company’s virtual debit cards. The integration is expected to have a direct and beneficial influence on TTON’s growth, as it facilitates TTON’s objective of integrating participants of Africa’s informal transport industry into a shared socio-economic, sustainable, and inclusive banking through structured transport Savings and Credit Co-Operative Societies (SACCOs).

Although currently cooperating only with trade associations, Pyypl anticipates that larger organisations such as the World Bank and the International Finance Corporation will become investors in the near future.

Another local fintech pursuing similar goals is Moni, which has recently launched its community-powered loans to help?market traders, spare part dealers, textile traders, and other small business owners in Africa to access the working capital needed to scale their businesses.