Let’s start with a simple scenario.
You’re using your go-to local delivery app, say, Olilifood in Delta State. You place an order, and instead of toggling between apps or dealing with network-failing USSD codes, you complete payment right there. Or maybe you’re a small trader in Aba using a platform to manage inventory, and you get a pop-up: “Need short-term financing to restock? Click here.”
That’s embedded finance in action. And if you’re a startup founder, entrepreneur, or digital creator in Nigeria’s South-East or South-South, you need to be paying attention.
So, What Is Embedded Finance?
Embedded finance is the seamless integration of financial services into non-financial platforms. Instead of opening a separate bank or fintech app to pay, lend, save, or insure, users can do all that within the app they’re already using to shop, travel, learn, or sell.
It’s not fintech in the traditional sense. It’s fintech inside everything else.
In real terms, embedded finance looks like:
- Ride-hailing apps with in-app driver wallets and earnings analytics
- E-commerce platforms offering buy-now-pay-later options
- Online education portals with tuition financing built in
- Logistics platforms enabling instant payments to dispatch riders
- Agritech apps offering embedded microloans for farmers
It’s not the future. It’s now.
Why Should Southern Startups and SMEs Care?
This region thrives on community commerce, informal economies, and increasingly mobile-first behaviour. Embedded finance naturally fits into that flow.
Here’s how:
1. We Operate in Trust-Based Economies
Markets in Onitsha, Calabar, or Uyo are built on relationships, not just transactions. Embedded finance enables you to integrate trust into digital platforms, allowing features such as instalment payments, peer-to-peer transfers, or even savings groups within your app.
2. Traditional Banking Is Still a Hurdle
For many people across the South-East and South-South, the nearest bank branch is a transport fare away. But almost everyone has a phone. Offering embedded wallets, savings, or loan options inside apps reduces dependency on outdated systems while reaching the underbanked.
3. Customers Are More Likely to Stay
When your app doesn’t just serve one need but meets several financial needs, users stick around. That means more loyalty, more data, and potentially more revenue.
The Local Angle: Who’s Already Doing This?
Some early signs of embedded finance are showing up in platforms across the region:
- OliliFood in Delta: Integrated payment and food logistics app simplifying local transactions.
- Delivery platforms in Anambra: Exploring digital wallets for quicker vendor payouts.
- Agritech pilots in Cross River and Akwa Ibom: Building in microloans for inputs and harvest season gaps.
- Marketplace platforms (still in stealth): Considering embedded insurance for sellers.
While most are still in the MVP phase, the shift is real, and regional builders are beginning to think beyond just “apps” and into ecosystems.
What Can Embedded Finance Do for You?
If you’re running a digital platform — whether it’s e-commerce, logistics, education, or even media — embedded finance offers some serious advantages:
Create Recurring Revenue
You don’t just earn from your core service. You can monetise through partnerships with fintechs, taking a small fee on transactions, loans, insurance sales, or payments.
Know Your Users Better
More embedded services = more behavioural data = better understanding of user habits, pain points, and potential upsells.
Offer a One-Stop Experience
Every time users switch apps to complete a task, you risk losing them. Embedded finance keeps them inside your environment, creating a smoother experience.
But Isn’t This Too Technical for a Small Startup?
It might sound like it, but it doesn’t have to be.
Thanks to API-based fintech providers like:
- Mono (for financial data)
- Okra (for account aggregation)
- Paystack/Flutterwave (for payments)
- Carbon/Alat/Aella (for credit services)
…you can now plug financial features into your product without building from scratch.
Here’s a simple roadmap:
Getting Started with Embedded Finance
- Audit the User Journey
What are your customers already doing that could be made easier with an embedded financial option? Is it payments? Instalments? Tips? Savings? - Identify the Friction
Are customers dropping off at checkout? Are vendors struggling with payout timelines? That’s where embedded finance helps. - Find a Fintech Partner
Talk to fintech providers with developer-friendly APIs. Many are actively looking to partner with local startups and will help you build. - Start Small
You don’t need to embed everything at once. Start with the highest-friction point and roll out gradually. - Communicate Clearly
Especially in markets where financial literacy is uneven, explain your features in plain language. Use videos, illustrations, and even market demos.
Risks to Watch Out For
While embedded finance is powerful, it’s not a silver bullet.
- User Trust: If customers lose money or don’t understand the process, it can backfire. Transparency is key.
- Over-embedding: Don’t overwhelm your app with too many features. Be strategic — serve real needs.
- Compliance: Always understand local regulations, especially when dealing with lending or data.
If in doubt, partner with licensed financial institutions.
The Bigger Picture: Why This Trend Won’t Fade
Embedded finance is part of a broader shift toward “everything apps.” In regions like Southeast Asia, Latin America, and now parts of Africa, people increasingly expect more from fewer apps. The same is starting to happen here.
“In the informal economies of Africa, trust and access matter more than sophistication. Embedded finance is how we bridge that gap — quietly, locally, powerfully.”
Embed What Matters
At the end of the day, embedded finance isn’t just about technology. It’s about serving people better, particularly those who’ve been left behind by traditional financial systems.
So, whether you’re a founder in Enugu, a product manager in Ebonyi, or a community builder in Warri, ask yourself:
“Where in my user’s journey do they need financial ease — and how can I meet them there?”
Because sometimes innovation isn’t about reinventing the wheel. It’s about putting the wheel inside the vehicle they’re already riding.
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