Different Paths to Unicorn Status Highlight Key Fintech Growth Debate in Africa

Two African fintech companies, TymeBank and Moniepoint Group, have both achieved “unicorn” status — valuations of over US$1 billion — but through sharply different operating models. Their success has sparked discussion about the most sustainable way to scale financial services across the continent.

Tyme Group operates as a fully licensed digital bank in South Africa and the Philippines. With around 15 million customers, it focuses on traditional banking services such as deposits, lending, and regulatory compliance. The company has reported group-level profitability and is valued at approximately US$1.5 billion.

In contrast, Nigeria-based Moniepoint Group has grown through a payments- and merchant-led model. It serves more than 10 million users and processes over US$250 billion in annual transaction value. Rather than starting with full banking services, Moniepoint prioritised merchant payments, transaction volume, and real-time cash-flow visibility before expanding into broader financial products.

The difference in strategy reflects a wider issue in Africa’s fintech sector: whether companies should focus first on regulatory banking infrastructure or on high-volume transaction services that meet immediate business needs.

TymeBank’s approach emphasises long-term stability through strong compliance, deposit mobilisation, and lending systems. This model is often seen as safer but slower to scale due to regulatory requirements.

Moniepoint’s model, however, shows how merchant-focused payment systems can drive rapid growth by embedding financial services directly into daily business operations. By serving small and medium-sized enterprises first, the company built a large transaction network before expanding its financial offerings.

Despite their differences, both companies share one key similarity: their growth was driven by building core financial infrastructure rather than flashy consumer-facing features. This highlights the importance of strong backend systems in achieving sustainable fintech success.

As African fintech continues to expand, the debate over the best path to scale — banking-first or payments-first — is likely to shape the future of digital finance across the continent.