KudaPay, a digital payments extension of the Nigerian neobank Kuda Technologies, is redefining how small businesses and merchants manage transactions in Nigeria. The startup’s journey from concept to minimum viable product (MVP) demonstrates how African fintechs can address real market problems while scaling rapidly in a challenging environment.
Kuda Technologies began in 2019 as a mobile-first banking platform offering free transfers, savings accounts, and other digital banking services. By early 2024, Kuda had grown to over 7 million users and processed more than ₦55.8 trillion (~$36 billion) in transactions since launch. In the first quarter of 2025 alone, it processed over 300 million transactions worth ₦14.3 trillion (~$9.3 billion), showing strong traction and validating the market need for reliable, digital-first banking solutions.
The idea behind KudaPay came from identifying persistent pain points among SMEs. Many small businesses struggled to collect payments digitally, reconcile accounts, and track cash flow efficiently. KudaPay’s MVP focused on core features: payment collection via QR codes, merchant dashboards, automated receipts, and basic analytics. The platform was tested with over 50 merchants in Lagos during early pilot runs, allowing the team to iterate quickly and address real-world operational challenges.
Building the MVP was not without obstacles. Regulatory approvals from the Central Bank of Nigeria, intense competition from rivals such as OPay and PalmPay, and the technical complexity of scaling infrastructure for high-volume transactions all required careful planning and iterative development. The KudaPay team prioritised user feedback, using insights from early merchants to refine features and ensure reliability before a wider rollout.
The effects of the MVP have been measurable. Merchants report faster transaction processing, simplified accounting, and improved customer satisfaction. By early 2025, the MVP had processed over ₦50 million (~$320,000) in transactions, demonstrating both product-market fit and readiness for expansion. KudaPay now plans to extend its services across Nigeria and eventually into other West African markets, leveraging its parent company’s infrastructure and growing user base.
KudaPay’s journey highlights how African startups can successfully move from idea to MVP by focusing on real problems, validating solutions with users, and iterating rapidly. In Nigeria’s rapidly evolving fintech landscape, KudaPay stands as an example of how careful planning, strong execution, and a customer-first approach can transform an idea into a product that drives real economic impact.
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