Enza: Innovating Payment Solutions for Africa
In recent years, the fintech landscape in Africa has witnessed a significant evolution, particularly with the emergence of Enza, a startup founded in 2022 by former Network International executives Hany Fekry and Hamish Houston. With initial funding of $6 million raised, Enza aims to fill critical gaps in local payment solutions for banks and fintechs across the continent.
Background and Founders
Both Fekry and Houston previously held senior positions at Network International, a major payment processor in the Middle East and Africa. Their experiences led them to identify a substantial need for comprehensive payment solutions catering specifically to African markets. Their departure from Network International was driven by a shared vision of addressing these unmet needs, culminating in the official launch of Enza in January 2023.
Enza’s Unique Positioning
Unlike traditional payment processors that primarily focus on merchant acquiring, Enza adopts a holistic approach to serve both the issuing and acceptance sides of payment transactions. The company’s strategy centers on providing banks, small to medium-sized enterprises (SMEs), and merchants with varied payment solutions—ranging from card payments to real-time transactions.
Target Markets
Enza is strategically targeting three prominent financial markets in Africa: Egypt, Nigeria, and South Africa. By enhancing payment systems within these regions, Enza aims to improve access to formal financial services for millions of underserved and unbanked businesses.
Goals and Services
One of Enza’s primary objectives is to facilitate in-person and online payment acceptance at minimal costs. This approach aims to foster long-term relationships between fintechs, banks, and SMEs. According to Andrew Key, the executive director at Enza, “Payments are the gateway… But the value is in the data and the services you can layer on top.”
Building Long-Term Relationships
Enza’s infrastructure not only provides payment solutions but also opens avenues for additional services such as lending, savings, and insurance as payment relationships establish themselves.
Enhancing Transparency for Banks
The founders of Enza understand the evolving dynamics between banks and fintechs in Africa, noting that banks must regain lost ground by leveraging technology. Houston stated, “Banks have realized they gave up too much ground to fintechs. We want to give them the tech to compete and win it back.”
Integration and Technology
Enza enhances the payment capabilities of banks by integrating with local card schemes such as Verve, AfriGo, and Meeza, as well as international networks like Visa and Mastercard. Furthermore, it connects with real-time payment infrastructures in various countries, including Nigeria’s NIBSS and Egypt’s InstaPay, and supports features such as QR codes and buy-now-pay-later (BNPL) options.
Leverage of Industry Experience
Drawing on their extensive experience, the founders have established connections with banks across Africa, previously working with close to 200 institutions. However, their current strategy prioritizes cultivating 30 to 40 strong relationships, focusing on quality over quantity.
Growth and Future Plans
Since its inception, Enza has quickly secured over 10 million monthly transactions across several African markets, showing a remarkable growth rate of 35 to 40% month-over-month. Looking ahead, the company aims to double this growth within two years and plans to utilize its recent funding to expand its team and enrich its product offerings across Africa’s banking sector.
Conclusion
Fekry emphasized the founders’ mission stating, “We founded Enza to solve real infrastructure problems across Africa.” As Enza continues to build its operations, it looks to ensure that all communities can access vital financial services comparable to those available in Europe or the U.S., at a lower cost and with increased accessibility.