Kippa, a fintech company known for its financial management and payments platform for Nigerian small businesses, has announced the discontinuation of its offline payment product, KippaPay. KippaPay was designed to allow users to send and receive payments and conduct extended payment transactions.
The decision to discontinue KippaPay will also lead to staff layoffs, although the exact number of employees affected was not disclosed. The core team responsible for KippaPay will leave the company by December.
Kippa’s founder and CEO, Kennedy Ekezie, described this decision as a challenging one, considering the significant effort put into the product. Profitability concerns played a key role in the decision to shut down the product.
Ekezie made the announcement in a statement, explaining that Kippa had developed and expanded the offline payments product over the past 18 months to support merchants with offline payments and agency banking through POS terminals. However, this decision aligns with their strategy to consolidate their profitable product portfolio.
Starting November 15, 2023, KippaPay will no longer be available for merchants to use. The company plans to offer support to merchants and partners during the transition period, helping them resolve any pending settlements.
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Background on Kippa
Kippa is a financial management and payments platform that caters to Nigerian small businesses. It was founded in June 2021 and secured $3.2 million in pre-seed funding in November of the same year. In September 2022, the company raised an additional $8.4 million in a new financing round, bringing its total funding to $11.6 million.
Kippa launched KippaPay in April 2022, an offering designed to enable small and medium-sized enterprises (SMEs) in Africa to send and receive payments within the Kippa app. Five months after the launch of KippaPay, the Central Bank of Nigeria granted Kippa a Payment Solutions Services Licence to operate as a Super-Agent. This allowed the company to issue POS terminals to its network of over 500,000 merchants across Nigeria’s 774 local governments. These merchants could then offer various financial services, including cash withdrawals and deposits, bank account opening, and bill and utility payments to their customers.
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