Enza Secures $6.75M to Strengthen Bank-Led Digital Payments Across Africa

African fintech startup Enza has raised $6.75 million in seed funding to provide traditional banks with greater control over digital payments, reshaping the competitive landscape between banks and fintech disruptors.

The funding round, co-led by Algebra Ventures and Quona Capital, with participation from Network International, will accelerate Enza’s expansion across Africa, enhance its payment infrastructure, and bolster its partnerships with financial institutions.

Reclaiming the Digital Payments Market

For over a decade, African fintechs like Flutterwave, Paystack, Paymob, and Moniepoint have dominated digital payments, offering fast, user-friendly solutions that banks struggled to match. While this has driven financial inclusion, it has also diverted transaction revenue from traditional financial institutions.

Enza aims to reverse this trend by providing banks with cutting-edge infrastructure to:

• Process transactions in-house, reducing reliance on third-party fintechs.
• Improve regulatory compliance with greater visibility into payment flows.
• Offer diverse payment methods, integrating:
  • Local card networks (Verve, AfriGo, Meeza).
  • Global platforms (Visa, Mastercard).
  • Real-time payment networks (NIBSS in Nigeria, PayShap in South Africa, InstaPay in Egypt).
  • Alternative payment options (mobile money, QR codes, BNPL, contactless payments).

A Strategic Shift in Africa’s Financial Ecosystem

Enza’s approach aligns with a broader shift in African banking strategy. While fintechs have excelled in customer acquisition and merchant services, banks remain central players in the financial ecosystem, controlling deposits, lending, and regulatory oversight.

Enza’s co-founder Hamish Houston emphasized that banks are now reclaiming lost ground, stating:

“Banks have realized they gave up too much ground to fintechs. We want to give them the tech to compete and win it back.”

This shift is especially significant as regulators in key African markets tighten fintech oversight, requiring banks to play a more active role in digital transactions.

Enza’s Expansion Strategy

Enza is targeting Africa’s three largest financial hubs:

• Nigeria – A booming fintech market with high digital transaction volumes.
• South Africa – A highly regulated banking sector transitioning to digital-first solutions.
• Egypt – A market experiencing rapid fintech growth and increasing mobile payment adoption.

Beyond these markets, Enza has secured over 10 million monthly transactions across six African countries (Rwanda, Nigeria, Ghana, Egypt, Uganda, and South Africa) and aims to increase bank partnerships in 2025.

Unlike many fintech startups prioritizing rapid expansion, Enza is focused on high-value partnerships rather than mass adoption. The company is targeting:

• 30–40 strategic bank relationships, instead of hundreds of smaller partnerships.
• A per-transaction revenue model, ensuring banks only pay for active usage.
• Sustained month-over-month growth, currently at 35–40%.

The Future of Bank-Led Fintech Innovation

Enza’s emergence signals a new phase in Africa’s digital payments sector, where banks regain competitive footing while maintaining the benefits fintechs introduced—convenience, speed, and accessibility.