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25-Feb-2025

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OnePipe Launches PaywithAccount to Ensure Faster, Hassle-Free Transactions for Nigerian SMEs 2 months ago

For many small business owners in Nigeria, managing cash flow is a daily challenge. Schools experience delays in tuition payments, logistics companies struggle with irregular driver remittances, and cooperatives tirelessly track member contributions. The process of collecting payments is often slow and unpredictable, requiring constant follow-ups that hinder financial stability.

A study by PwC revealed that 48% of Nigerian Micro, Small, and Medium Enterprises (MSMEs) have encountered delayed payments for various reasons, with 33% of those affected reporting severe consequences. Traditional payment systems typically involve manual invoicing, repeated follow-ups, and high transaction fees, leaving business owners with less time to focus on growing their operations.

Introducing PaywithAccount

In response to these challenges, OnePipe has launched PaywithAccount, a direct-from-account payment solution designed to automate and simplify the collections process, reducing delays and improving cash flow predictability.

With PaywithAccount, businesses can collect payments directly from customer bank accounts securely and automatically, eliminating the need for cards, manual reminders, or complex reconciliations.

Ope Adeoye, CEO of OnePipe, shared insights on this innovative solution, stating, "For many businesses, collecting payments from customers can be a frustrating process. Sending account details, waiting for responses, and chasing payments can consume valuable time and effort. That's why PaywithAccount was created—to address this challenge."

Once a customer provides consent, the system automatically pulls funds from their account, removing the need for constant follow-ups. If a payment is delayed, automated reminders via WhatsApp, email, and phone calls keep customers informed until they settle their dues.

Targeting Service-Based Businesses

Currently, the focus is on service-based businesses, including schools, online merchants, internet service providers, and telecommunications companies. These sectors often deal with recurring payments and customer delays, making them ideal candidates for a solution that facilitates smoother transactions.

"Small businesses are the backbone of our economy, but too many struggle simply because getting paid is a challenge," Adeoye emphasized. "We believe financial technology should remove obstacles, not create them. PaywithAccount helps businesses concentrate on what truly matters—growth, innovation, and serving their customers."

Open Source and Customization

From the outset, Adeoye explained that the decision to keep PaywithAccount open source was intentional. "Innovation grows faster when more people can contribute," he noted. Some businesses may wish to build customized solutions, such as payroll systems, using the platform's API. The goal is to encourage collaboration, allowing different players to expand on existing solutions.

Regarding the expertise involved in developing PaywithAccount, Adeoye asserted that every step of the process was handled locally, as the team is committed to creating homegrown solutions tailored to the market they serve. Security is a key concern when dealing with financial transactions, and with PaywithAccount, no funds are withdrawn without the user's explicit consent. Each transaction requires approval, and customers receive a dedicated website where they can verify transactions using an OTP linked to their phone number. Any suspicious charges can be canceled immediately, ensuring users maintain control over their funds.

Enhancing Financial Inclusion

Adeoye emphasized that financial inclusion goes beyond merely having a bank account; it encompasses access to the same level of financial services, regardless of income level. One of the key benefits of PaywithAccount is that it provides businesses with digital payment records, making it easier for banks to assess cash flow and extend credit lines based on actual revenue data. The team is already collaborating with partner banks to offer businesses a 90-day window, where projected earnings can serve as a basis for financial support.

The subscription-based economy has gained traction globally, yet payment reliability remains a challenge in many regions. PaywithAccount addresses this issue by enabling businesses to collect dues without constant follow-ups, thereby making the subscription model a more viable and sustainable option.

Future Developments

Looking ahead, future iterations of PaywithAccount may integrate more sophisticated tracking features. With user consent, the system could leverage BVN-linked data to provide a clearer picture of an individual's financial activity across multiple bank accounts, further streamlining payment tracking and financial management.

Ultimately, PaywithAccount is more than just a payment tool; it's a system designed to reduce friction, giving businesses greater control over their cash flow while providing customers with a seamless and secure way to settle their obligations.

For Adeoye and the team, this is just the beginning. They envision a future where digital transactions enable a wide range of financial solutions. Payments are foundational, but there are numerous other areas where similar innovations can enhance the movement of money.

For entrepreneurs across Nigeria, the ability to receive payments on time can mean the difference between survival and growth.

"As a school owner, I want to focus on my students, not spend hours tracking unpaid fees," said Mrs. Olumide Ashade, Founder of King's Court School in Lagos. "Many of our parents pay in installments, but managing these payments manually has been stressful. A solution like PaywithAccount allows us to offer flexibility to parents while keeping our finances in order."

"Reliable repayment is crucial for growth among lenders," stated Adedeji Olowe, Founder of Lendsqr. "We have assisted many of our lenders in transitioning from debit cards to PaywithAccount, which ensures loan repayments are consistently on schedule."

"At NIBSS, our core vision is to empower the financial ecosystem to innovate within the framework of interoperability, ease of connectivity, collaboration, and cost optimization," said Ngover Ihyembe-Nwankwo, Executive Director of Nigeria Inter-Bank Settlement Systems PLC (NIBSS). "PaywithAccount is another encouraging example of what happens when industry players leverage these guardrails to enhance the overall quality of our nation's digital payment system."

With PaywithAccount, small businesses across Nigeria can now eliminate the stress of late payments, automate their collections, and take full control of their financial future.

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