Yabx is partnering with PayCliq to launch an innovative merchant cash advance service in Nigeria. There are some 100 million MSMEs in Africa with 42 million in Nigeria. Consumer payments on the continent are projected to exceed $2.1trn by 2025.

PayCliq offers a business tool specifically designed for businesses across Africa. It aims to facilitate seamless payments for merchants, promoting financial inclusion and supports Nigeria’s cashless policy and business accountability.

AI scoring partner, Yabx, aims to speed up the uptake of digital payments. It is building a lending infrastructure for small businesses. MSMEs often find it difficult to secure formal loans. For example, they encounter challenges with providing proper identity documents, collateral, or a credit history. However, with the understanding that adopting digital payments can help them build a credit score becomes a compelling reason for them to embrace this opportunity.

Yabx will leverage the business data from PayCliq. It will use AI/ML algorithms on its cloud powered digital lending platform to build credit scores and personalised credit limits. This will not only solve the problem of credit but also the problem of payments. This will mean that businesses can get an instant line of credit in their operating accounts and pay for it in 30-, 60- or 90-day instalments.

Nigeria ramps up cash displacement strategy

The collaboration comes at a crucial time for Nigeria. The country is actively promoting a cashless economy, focusing on streamlined transactions and simplified auditing processes. Currently, over $19trn is transacted annually in cash payments and so the opportunity to digitise these payments is substantial.

However, challenges persist, such as the late supply of goods as manufacturers and suppliers want money upfront. And there is an inability to meet growing demand as many businesses’ stock is impacted by the current exchange rate. Yabx and PayCliq say they are strategically positioned to address these issues, providing innovative and inclusive credit and business solutions.

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Puneet Chopra, Chief Growth Officer at Yabx, said: “We’re thrilled to partner with PayCliq. Combining our AI-driven credit scoring expertise with their robust payments infrastructure transforms the financial landscape in Nigeria. By streamlining repayments and unlocking transactional data, we’re committed to creating seamless, fully automated lending journeys that empower local businesses and consumers. Now is the ideal time to harness the potential of technology and collaboration to build stronger, more agile systems that support Nigeria’s growth in consumerism.”

New service set to go live in the second quarter

Susan Adewunmi (Head of Operations) at PayCliq, added: “PayCliq is excited to collaborate with Yabx in providing innovative solutions to address the challenges faced by businesses in Nigeria. By providing direct funds to the businesses and assisting in the settlement process, we are addressing the challenges faced by our target audience. [That is] the 42 million businesses in Nigeria, predominantly consisting of mom-and-pop shops and SMEs.”

The new service is anticipated to go live within Q2. It will enable businesses to make more sales as well as providing comprehensive and inclusive payment solutions to address the unique needs of the Nigerian market.