Banking-as-a-service (BaaS) platforms are revolutionizing the way non-bank businesses access digital financial services. These platforms introduce fintech capabilities to businesses, allowing them to offer services like card payments and lending without the need to build their own tech infrastructure or navigate complex regulatory processes.
The global trend indicates that businesses will increasingly rely on BaaS platforms in the coming years to launch new financial services, boost revenues, and enhance customer experience. A recent report by Allied Market Research forecasts that the BaaS market value will reach $22.6 billion by 2032, driven by a 19.3% compound annual growth rate (CAGR).
In Egypt, fintech startup Connect Money is leveraging the growing popularity of BaaS to explore business opportunities in African markets. The company enables trade companies to issue white-label debit and credit cards to customers, providing access to a range of financial services such as payments and credit.
Founded by Ayman Essawy, Wadi Jalil, and Abdelaziz Sarhan, Connect Money has secured $8 million in seed funding to support its expansion plans. The funding round was led by Egyptian VCs DisrupTech Ventures, Algebra Ventures, and Lorax Capital Partners, with participation from One Stop Capital and MDP.
Essawy, the CEO of Connect Money, envisions the company as a one-stop shop for traditional and digital businesses looking to offer financial services to their customers. By subscribing to Connect Money’s services, businesses can avoid substantial capital investments and regulatory hurdles, paying a monthly fee per card instead.
The platform offers various use cases across different industries, including agriculture, where supply chain companies can act as banks for farmers by providing white-label cards. Essawy emphasizes that the core market for Connect Money is embedded finance, enabling businesses to connect with cash users seamlessly.
Connect Money’s services encompass card issuance, KYC (Know Your Customer) procedures, customer support, and mobile banking app development. Businesses with lengthy settlement cycles can leverage the platform to make instant payments and disbursements, while lenders can use the technology to streamline their operations and offer credit services.
In Africa, Connect Money joins a growing number of fintech companies in the BaaS space, such as Nigeria’s Anchor, Maplerad, and Bloc. These companies are democratizing access to financial services by empowering businesses to offer customized financial solutions to their customers.
As the demand for digital financial services continues to rise, BaaS platforms like Connect Money are poised to play a pivotal role in driving financial inclusion and innovation across various industries. By simplifying the process of offering financial services, these platforms enable businesses to focus on delivering value to their customers and growing their operations in a rapidly evolving digital landscape.
