Hydrogen, the fintech arm of Access Corporation, has reported a remarkable turnaround in its financial performance for the first half (H1) of 2024, recording an after-tax profit of N238 million.
This increase marks a significant improvement from the after-tax loss of N619 million reported during the same period in 2023. An analysis by BusinessDay of Hydrogen’s financial report revealed substantial growth in operating income, soaring by 1,875 percent to N3.18 billion in H1 2024, up from N161 million in H1 2023. This growth reflects the increasing adoption of digital payments in Nigeria and underscores Access Corporation’s commitment to bolstering its presence in the fintech industry.
A closer look at the financial statement shows that Hydrogen’s operating expenses rose sharply to N2.9 billion in the first half of 2024, compared to N780 million in the same period the previous year. The fintech’s cash and cash equivalents also grew to N20.1 billion, while other assets increased to N1.8 billion. Hydrogen’s total equity for H1 2024 stood at N2.9 billion.
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In 2022, Access Holdings received the Central Bank of Nigeria (CBN) approval for its payment subsidiary Hydrogen, after scaling regulators hurdle. According to the company, it noted that the development is part of its strategy to build a globally connected community and ecosystem. This will see the fintech subsidiary, handle the group’s switching business and process payments among the broader plan to build a sustainable financial inclusion powerhouse.
In December 2023, the company closed with an operating income of N2.08 billion. This reflected the culmination of its strategic investments and diligent efforts in building a sustainable and resilient business model. Hydrogen offers products and services that include InstantPay, Payment Gateway, POS, Card, and Switch services. The fintech hopes to serve a clientele that cuts across the private and public sectors. The company claims to have processed approximately N15 trillion in transactions across its different channels in 2023. It also launched eight payment products in the same year.
Hydrogen is being positioned as a platform to drive virtually all of the digital transactions accruing to the group from across subsidiaries from banking to pensions as well as insurance, facilitating cash flow and aiding settlement. The fintech has big ambitions; it wants to build Africa’s most powerful payment business network. It competes with other fintech players such as GTCO’s Squad, Flutterwave, Moniepoint, Stanic IBTC’s Zest, and Paystack.
While it acknowledges the saturated payments market, Hydrogen believes that its approach is different, relying on a combination of strategic partnerships, technological prowess, and a deep understanding of the market dynamics.