Habaripay, a fintech subsidiary of Guaranty Trust Holding Co Plc, that offers payment gateways, marketplace, and small business services, has announced a profit after tax of N1.7 billion in the first half (H1) of 2024.
This surge in profit represents a 30.7% increase compared to the N1.3 billion recorded during the same period in 2023. In its half-year 2024 financial presentation to investors, Habaripay reported a 21% rise in gross revenue, reaching N2.8 billion, up from N2.3 billion in the first half of 2023.
A key highlight of the report was the significant growth in Total Payment Value (TPV) of Naira transactions processed by the fintech. TPV surged by over 170% rising to N9.8 trillion in H1 2024 from N3.6 trillion in full-year 2023. The Fintech also saw an increase in the TPV of Dollar transactions, which grew to $1.2 million compared to $1.1 million in the same period last year.
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GTCO noted that HabariPay’s revenue growth was also fueled by increased fee income from value-added service (VAS) and transaction processing for counterparties. GTCO initially launched Habari Pay in 2018, as a super-app that provides everything from streaming content to an e-commerce marketplace. The bank, with its ecosystem of Small business customers, wanted to create a marketplace hub to support vendors across different industries.
Fast forward to 2021, it transitioned into a holding company from its standalone commercial banking structure. The bank then made Habari Pay a standalone business offering payments, a marketplace, and small business services. Since the launch of Habaripay in 2022, the Fintech subsidiary has so far gained market acceptance, and has become a preferred payment solution for several individuals and businesses. In 2022, GTCO reported that HabariPay generated revenue of N1.52 billion and a pre-tax profit of N926 million, having operated for only 6 months.
Also, in the first quarter (Q1) of 2023, the fintech company reported a 300 percent rise in profit. Reports revealed that HabariPay recorded a profit after tax of N1.3 billion in H1, compared to N322.9 million in the same period of 2022. With a focus on providing innovative payment solutions, HabariPay leverages the strength of its parent company while offering diverse services such as bill payments, online shopping, and entertainment through its “Squad” platforms.
The fintech’s impressive financial performance, marked by strong revenue growth and increasing transaction volumes, underscores its ability to compete effectively with other major players in the Nigerian fintech industry. Notably, the platform’s significant growth shows promising adoption of the bank’s digital payments business as it looks to bolster its hold on the fintech sector.
Guaranty Trust Holding Co PIc has disclosed that through the launch of its Fintech subsidiary, it wants to be at the forefront of delivering cutting-edge innovative solutions with its banking franchise, and would leverage its capacity to transform the evolving payment space.