Nigeria’s fintech and BaaS infrastructure Bloc acquires Orchestrate, a payment orchestration company, to improve its payment system.
The acquisition still positions Orchestrate as a lone entity as it was before and it boosts Bloc’s capacity to offer fintech services such as online payments, subscription management, BNPL payment infrastructure, virtual wallets, and bill payments, etc.
About Bloc
Bloc which was founded in 2021 is a fintech startup that aids other organizations to provide fintech services to its users by using an exclusive set of building blocks which are: Infrastructure, Compliance, and Capital which enables it to increase its value to stakeholders such as employees, investors, and customers.
About Orchestrate
Orchestrate which was formerly known as Getwallets was also founded in 2021 and it prides itself on being the fastest way to include new payment methods into fintech products and provide multiple payment options to African customers.
In a statement concerning the acquisition of Orchestrate, Bloc’s CEO, Edmund Olotu said:
“We are proud of our input in helping shape the African fintech space and excited to welcome the Orchestrate team into the Bloc family.
Part of our vision has always been to empower businesses of all sizes to offer seamless payment solutions to their customers, which is essential not just to the experience of the end user but also to the sector’s growth.
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Jerry and his team have built an incredible platform that is a great fit with what we were looking to add to our suite of services so it made sense to acquire their proven expertise rather than building our platform from scratch.
This is an exciting evolution for both businesses as we look to grow and build even more solutions that ultimately support the growth of African tech businesses in the coming years”.
Orchestrate CEO’s Statement
“It is clear that our business growth goals aligned and that we could mutually benefit from combining talents, resources and expertise to create a unique infrastructure that can power African fintech.
We’re looking forward to working together to close the fragmented gaps in cross-platform payments and powering many more businesses to scale their markets, whether in Africa or globally”.
Both companies intend to simplify the fintech infrastructure hence making it simple for businesses to enable fast and seamless service for their customer and users which will enhance growth in the ecosystem.
Reasons Why Fintech is Very Important for Businesses
Fintech inclusion in businesses is becoming vital since the Covid-19 pandemic, we have all used fintech services in one way or another other like PayPal, Trading apps, etc. Here are some reasons why fintech is very important to businesses:
1) Access to More Resources:
As we all know, Fintech companies create algorithms and ecosystems for other companies to use for transactions in the most seamless way possible. The introduction of fintech services in various businesses has proven to be the driving force to their success.
2) It Creates Financial Inclusion:
Fintech is very easy to understand that’s why it can be used anywhere, by anyone and even those who are illiterate in financial services find it acceptable. Previously, Continents like Africa have most of their populace unbanked but now we have more people using financial services due to the invention of Fintech.
Fintech companies through the use of mobile money and e-wallets have lifted people from the poverty zone and have created a more financially inclusive world. Companies like M-Pesa and Tala have already led the way in revolutionizing how individuals manage their money, M-Pesa has lifted over 194,000 Kenyan households, or 2% out of poverty.
3) It Is a More Cost-Effective Option:
There are various services that traditional banks are known to engage in which fintech companies don’t. For instance, Banks employ tons of staff at their physical branches which makes them deduct a lot of charges to foot the bills associated with having employees but since Fintech is done online there is no need for any physical branch and tons of employees which makes them save more and then eventually pass theses savings unto you.
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Today, there are tons of Fintech companies that don’t charge commission for transactions which entails that you have more money in your pocket, unlike traditional banks.
4) Safety and Security:
People usually believe that “seeing is believing” because since these fintech companies have no physical branches they can be trusted with sensitive data but due to their strong presence online they implore the latest cybersecurity tools to safeguard the data of their members unlike traditional banks who deal physically making them prone to robbery and natural disasters.
5) They Cut Out The Differences Between Big And Small Companies:
Normally, Large businesses are expected to have the upper hand when it comes to the latest technological tools because they possess the capital to afford to leave the smaller businesses inferior but now with the introduction of innovative fintech products, smaller businesses and even solopreneurs have access to some of the tools which were considered to be only big businesses who could afford it, such tools include:
i) Square and Stripe- For processing payments;
ii) Xero or QuickBooks- To efficiently manage your records.
6) It Enhances Our Financial Capability:
Fintech companies help us greatly in how we manage our finances and startups like Robinhood and Chime are key stakeholders in empowering the populace with financial education and literacy. Empowering the masses with financial literacy and education will help to emphasize the need of investing and budget for the future.