One year after its launch into the financial tech space, OyaPay, a Nigerian mobile-based point-of-sale startup has shut down operations at a time Fintech companies are rebranding for growth and seeking investment for expansion.
OyaPay announced the closure of the business products on its company blog in February 2019, assuring customers and business partners of wallet refunds and disbursing merchants balance.
The company is among several Nigerian tech startups aiding Nigeria towards its cashless society by enabling small and medium businesses to incorporate digital platforms into their enterprises to provide secured business transaction.
“our grand experiment is at an end”, co-founder Abdulhamid Hassan said
Competing with the likes of Paystack, Flutterwave, Paga, and TeampApt, the now-defunct startup was trying to ensure that offline businesses could accept payment and take forward orders from their customers with or without a smartphone.
Reason for the shutdown
Hassan had ignored the idea of sourcing for external investment from interested investors, looking to grow the company from within, but Hassan had sourced for capital from a relative, who rejected the decision to dilute his shares when the need for an investor arose months later.
Hassan disclosed this during an interview with Techpoint Africa, stating after months of discussion, he decided to shut down operation when both parties couldn’t come to an agreement.
“For months we couldn’t resolve it, I became frustrated and decided to call it quits,” he says.
Paystack denied acquiring OyaPay after it was reported that some staff of the now-defunct Fintech company received employment offers from Paystack, but the company said the acquisition claim was incorrect.
“We think extremely highly of the crew because they are some of the best operators in fintech we’ve encountered and we are lucky to have some of them joining the Paystack family.
“But it is incorrect to say Paystack acquired OyaPay,” Paystack told techpoint
OyaPay is a mobile to mobile payment app that uses Bluetooth-powered BluePay and the camera-powered ScanPay to transmit money.
BluePay uses Bluetooth Low Energy, wireless personal area network technology developed by Bluetooth that uses as few bytes as possible, to allow in-store merchants to accept multiple payments from more than one person at a time in a contactless and hands-free manner, reducing queues.
While the ScanPay allows one-to-one transactions, with merchants scanning a customer’s QR code to accept payment.