Payhippo

Payhippo is a Nigerian fintech company founded in 2019 by Chioma Okotcha, Uche Nnadi, and Zach Bijesse, headquartered in Lagos. It aims to make it easier for small and medium-sized enterprises (SMEs) to access financial services.

Payhippo specializes in providing fast, collateral-free loans using data analytics to assess creditworthiness, disbursing funds within three hours.

They also facilitate clean energy access by offering loans to end-users, installers, dealers, and operators, enhancing the availability of clean energy equipment in Africa. This initiative supports the growth of sustainable energy solutions across the continent.

Additionally, Payhippo’s services include banking products like business accounts and debit cards, as well as insurance offerings. They have raised significant funding, supported by investors such as Y Combinator, Ventures Platform, and Future Africa, to expand their reach and impact​

Mission

Payhippo’s mission is to provide seamless financial services for merchants throughout Africa. They focus on making financial services accessible and efficient for small and medium-sized enterprises (SMEs) across the continent.

Vision

Payhippo aims to be the leading provider of financial services to SMEs in Africa, leveraging technology to enable businesses to thrive and contribute to the economic development of the region​.

Core Values of Payhippo

Payhippo has established a set of core values that underpin their operations and company culture. These values include:

1. Customer-Centricity: Payhippo focuses on understanding and meeting the needs of their customers, primarily small and medium-sized enterprises (SMEs). They aim to provide seamless financial services tailored to the unique challenges faced by SMEs.
2. Innovation: The company leverages technology to create innovative solutions for financial inclusion. They use data analytics to assess creditworthiness and deliver loans quickly and efficiently.
3. Integrity: Maintaining high ethical standards in all interactions and transactions is crucial for Payhippo. They prioritize transparency and honesty in their dealings with customers and stakeholders.
4. Efficiency: Speed and efficiency are central to Payhippo’s service delivery. They strive to provide financial services rapidly, ensuring that businesses receive the support they need without unnecessary delays.
5. Empowerment: Payhippo is dedicated to empowering SMEs by providing them with the financial tools they need to grow and succeed. They focus on enabling businesses to thrive and contribute to the broader economy.

Services

Payhippo offers several financial products and services, including:

• Loans: Fast disbursement of loans (within three hours) without collateral, using various data points to assess creditworthiness.
• Banking Services: Business accounts, debit cards, and international money transfers.
• Solar Financing: Loans to vendors and end-users for solar equipment, aimed at increasing access to clean energy.
• Insurance: Products such as asset protection and business interruption insurance​.

Payhippo’s Business Model

Payhippo operates a fintech platform designed to provide quick and accessible financial services to small and medium-sized enterprises (SMEs). The company raises revenue and makes money through the following key mechanisms:

1. Interest on Loans:
   • Short-term Loans: Payhippo offers 30-day loans with an interest rate of 6%.
   • Multi-month Loans: They also provide 60-90 day loans with an interest rate of 6.5%, reserved for their best-performing customers​​.
2. Loan Origination Fees:
   • Payhippo charges origination fees on the loans they disburse, which contributes to their revenue. These fees are typically a percentage of the loan amount and are charged at the beginning of the loan term.
3. Financial Services:
   • Banking Services: The company offers business accounts, debit cards, and international money transfers. These services can generate revenue through transaction fees, maintenance fees, and currency exchange fees​​.
   • Insurance Products: Payhippo provides various insurance products such as asset protection and business interruption insurance. They earn commissions or premiums from selling these insurance products​.
4. Data Analytics:
   • Payhippo uses advanced data analytics to assess the creditworthiness of loan applicants. This not only reduces the risk of defaults but also allows them to price their loans more accurately based on the risk profile of each borrower.
5. Partnerships and Collaborations:
   • The company collaborates with other financial institutions and fintech companies to expand their service offerings and reach more customers. These partnerships often involve revenue-sharing agreements and commissions for referred customers.