eTranzact revenue rises 22.6% to N16.3 billion in H1 2026

eTranzact International Plc grew revenue by 22.6% to N16.28 billion in the first half of 2026, as the payments company expanded its operations during the period.

The growth came as eTranzact continued to invest in its agent banking and POS network, while navigating changes in Nigeria’s payments landscape.

However, the stronger topline did not translate into higher bottom-line, with rising costs putting pressure on profitability.

What the numbers are saying

eTranzact generated N16.28 billion in revenue in H1 2026, compared with N13.28 billion in the corresponding period of 2025.

• Cost of sales rose 39% to N9.50 billion, from N6.84 billion, while gross profit increased only 5.1% to N6.78 billion. Gross margin consequently fell by 690 basis points to 41.6%, from 48.5% in H1 2025.
• Operating expenses added further pressure, with administrative expenses increasing 21.9% to N4.81 billion, while selling and marketing expenses declined 11.9% to about N377 million.
• Operating profit consequently fell 23.2% to N1.59 billion, from N2.07 billion a year earlier.
• Finance income rose from N88 million to N150 million, providing some support. Profit before tax nevertheless declined 19.1% to N1.75 billion, while profit after tax fell to N1.22 billion.

The numbers show a clear disconnect between eTranzact’s topline and bottom line: revenue is growing, but the cost of generating that growth is rising considerably faster.

One of the most significant corporate developments around eTranzact in H1 2026 was a change in its ownership structure.

• As of June 30, Trademarks Global Concepts Limited held a 56.18% stake in eTranzact, giving it a controlling interest in the company.

This replaced Access Bank Nigeria Plc’s previous 37.56% stake, while eTranzact Global Limited’s holding declined from 22.50% to 14.49%.

Payment switching faces a changing fee environment

One of the structural pressures facing eTranzact is the changing economics of payment switching.

The NIBSS NIP switching fee fell from N5 per transaction before 2023 to N3.75 in July 2023 and N2 in January 2026, with a zero-fee model targeted for the end of 2026.

• For payment switches such as eTranzact, the reduction means transaction volumes will need to grow significantly to compensate for lower revenue earned per transaction.
• The payments industry is also transitioning to the National Payment Stack, which recorded its first live transaction in November 2025 and is expected to replace the existing NIBSS NIP rails.
• eTranzact is also investing heavily in its agent banking and POS network as it seeks to capture more transactions from Nigeria’s financial inclusion market.

The company spent about N1.23 billion on capital expenditure in H1 2026, with approximately N850 million directed towards POS deployment.

The expansion came with a significant cash-flow impact. Payments to suppliers and employees nearly doubled to about N21 billion, while operating cash flow swung from a positive N1.14 billion in H1 2025 to negative N6.86 billion.

Get up to speed

eTranzact’s H1 2026 performance follows a mixed start to the year after the company remained profitable in 2025 despite weaker earnings.

• In February 2026, eTranzact reported a N4.2 billion profit before tax for 2025, down from N5.02 billion in 2024. The decline came despite a slight increase in revenue, as higher operating expenses offset improvements in topline cost efficiency.

The company also featured prominently in NGX trading activity in March 2026.

• On March 18, eTranzact recorded 5.1 billion shares traded, the highest volume among stocks on the exchange that day, contributing significantly to total market volume of 6.06 billion shares.

The heavy trading came as the All-Share Index fell 0.69% to 201,156.8, while market capitalisation declined to N129.1 trillion.

What you should know

The H1 results come as eTranzact faces a separate legal issue involving alleged fraudulent transactions on its platform.

• Earlier this month, the Federal High Court in Abuja ordered 12 commercial banks and six fintech platforms to place about 69 accounts on post-no-debit restrictions over alleged fraudulent and unauthorised credit transactions.

Nairametrics reports that the case followed a petition by eTranzact concerning alleged database penetration and transaction manipulation on its internet banking platform, which reportedly resulted in fraudulent credits being made to beneficiary accounts held with other financial institutions.