Over the past decade, Dubai -based Network International has become one of the prevailing payment processors throughout the Middle East and Africa, thanks to a pair of purchases.
However, many large tasks can fall prey to slower innovation, opening the door for smaller, faster beginnings. The latest development is Enza, a Fintech founded in 2022 by Hany Fekry, a former Network Managing Director, along with a former executive of former Hamish Houston.
Fintech, who has raised $ 6 million in seed funds, is building infrastructure for banks and fintech, offering a series of local payments, from cards to wallets to real time.
Prior to the start of the ENA, the founders managed the global departments for consumer acceptance, processing and financing at Network International. As the network was building a powerful network of payments throughout the Middle East and Africa, focusing largely on the acceptance of things, they felt a mass gap in creating comprehensive solutions for banks and fintechs, especially in Africa.
When no party could find an approximation with the network, they resigned to start Enza, which officially began in January 2023.
“Our divergence pushed us to take a step back and rethink how to address these undeserved needs in the market,” CEO fekry told Techcrunch.
The founders of Enza say they have built the company using lessons from their time in Network International and its subsidiary, DPO Group. But unlike those firms, which focused mainly on the acceptance of the cards and the purchase of traders, Enza is taking a wider approach, serving both parties of the transaction.
The Enza platform is created for banks and fintech on the release side, and the SMEs and traders on the acceptance side. Starting is initially aiming for Egypt, Nigeria and South Africa, three of the continent’s largest financial markets.
Acceptance of wider Fintech payments
Payments are often the first point of entry into official finances for millions of unmarried or uncontrolled small businesses across Africa. Enza wants to help these businesses accept personal and online payments at least or at no cost-a strategy that he thinks will allow banks and fintechs to build long-term relationships.
Once they have been created, the enzyme infrastructure enables sale of lending, savings, insurance and other financial services.
“Payments are gates,” says Andrew Key, who joined Enza as Executive Director last year. “But the value is in the data and services you can lay on top.”
This strategy also plays in changing the dynamics between banks and Fintech in Africa. For years, banks have ceded infrastructure and especially the NVM market share for players such as Flutterwave, Fawry, Paymob and Moniepoint, now the largest buyer of Nigeria trader. But banks still maintain the main advantages, namely the wider service offers and regulatory support.
“Banks have realized that they gave up a lot of Fintechs,” Houston said. “We want to give them the technology to compete and win it again.”
Similarly, despite the growth of fintechs throughout Africa, banks remain the central players, arranged after most payment aggregants. But many still lack clear visibility in what their collectors or dealers are doing downstream.
This is one of the functionalities of the enza, the founders say: giving banks more transparency and control over their payment ecosystems so that they can stand in accordance with the scaling.
Dubai -based start also expands the payment options available to banks. Enza integrates with local card schemes such as Verse, Afrigo and Meeza, along with global networks such as Visa and MasterCard.
It also relates to real-time payment infrastructure, including NIBSS of Nigeria, South African Payshap, and Egypt’s Instapay, as well as removable money and telco, while supporting QR codes, purchasing-overpaya-tani-papay (BNPL) and features of non-contact payments.
Using the founders’ networks
Enza is using the experience of its founders’ decades and deep relationships across the continent to quickly secure contracts with some banks. For example, FEKRY previously served as the leading trade officer in developing markets (EMPs), which was won by Network International, where he later became a managing director.
Throughout their careers, the team has worked with nearly 200 banks. But this time, they are going for quality over the quantity. “We’re not trying to repeat that degree,” Houston said. “We are targeting 30 to 40 high quality banking relationships.”
While the company launched only operations last year, Dubai -based Fintech has already provided over 10 million monthly contracted transactions through Live Banking Partnerships in the six African markets, Rwanda, Nigeria, Ghap, Egypt, Uganda and South Africa.
Enza accuses banks on the basis of transaction (“per click”). These volumes are increasing 35 to 40% more than months and is expected to double in the next two years.
Bootstrapped company in its early years, with its own funded founders. When they decided to collect out of capital, the founders said they did not buy the agreement widely.
Instead, algebra Ventures and Quona Capital led the $ 6 million seed round. “Leadership team Enza has an impressive record for the start, growth and exit of Fintech businesses across the continent,” said Tarek Assaad, managing partner at Algebra Ventures, why his firm supported two-year Fintech.
The new capital will go towards expanding the team and bring new products to its bank clientele across Africa.
“We founded Enza to solve the true infrastructure problems throughout Africa,” Fekry said. “We have spent our careers trying to make sure that our families and communities can enter financial products as people in Europe or the low cost and at any time they want.”
