Tech Use Can Solve Funding Issues For SMEs – Payaza CTO

The Chief Technology Officer (CTO) of Payaza, a financial technology company, Mr. Philips Akinyele, recently discussed with LAOLU AFOLABI the technological strategies aimed at helping small and medium enterprises (SMEs) overcome challenges in accessing financial resources.

Key Strategies for SMEs

Enhancing Financial Inclusion
At Payaza, our main focus is to improve financial inclusion for SMEs throughout Africa. We recognize that having access to financial services is essential for businesses to grow and survive, especially in developing markets. Our strategy is built on three main areas: accessibility, security, and innovation.

1. Accessibility: We offer a wide range of services that make it easy for businesses to send and receive payments. This includes options like mobile money, bank transfers, card payments, and QR code transactions. By providing multiple payment methods, we ensure that businesses and their customers have flexibility and convenience. Additionally, we offer tools for real-time transaction tracking and detailed financial reporting, which help SMEs manage their cash flow more effectively.
2. Security: Protecting user data and transactions is a top priority for us. We use advanced encryption technologies and comply with international regulations to ensure that businesses can operate securely. Beyond payment processing, we have programs like Payaza Boost, which provides short-term loans with low interest rates and flexible repayment options. This helps SMEs tackle financial challenges, manage seasonal variations, and seize growth opportunities. The application process for these loans is designed to be quick and straightforward.
3. Innovation: Our platform works well with popular accounting software and business management tools, allowing SMEs to automate their processes and gain valuable insights into their financial status. We also focus on improving financial literacy by providing resources and training to help entrepreneurs make better financial decisions.

Ultimately, our goal is to create an environment where SMEs can flourish, innovate, and contribute to Africa’s economic development. We continuously adapt our services based on market needs to remain a reliable partner for African businesses.

Barriers to Technology Adoption for SMEs

Mr. Akinyele highlighted several challenges that prevent SMEs from effectively adopting technology:

1. Limited Digital Literacy: Many business owners lack the technical skills needed to use digital solutions effectively, especially in areas where training is not readily available.
2. High Costs: The expenses associated with purchasing and maintaining technology can be prohibitive for smaller businesses that operate on tight budgets. This includes costs for hardware, software licenses, and ongoing maintenance.
3. Infrastructure Gaps: Inconsistent internet connectivity and frequent power outages in some regions hinder SMEs’ ability to adopt and sustain digital solutions, making it difficult to access cloud services and conduct online transactions.
4. Trust Issues: Concerns about data security and the risk of fraud make many SMEs hesitant to embrace digital solutions. Business owners often worry about protecting sensitive information and ensuring safe online transactions.

Payaza’s Unique Approach

Payaza differentiates itself from other companies in the region through its localized solutions tailored to the specific needs of African markets. Our technology is designed to be flexible and scalable, meaning it can grow and adapt as businesses expand. We also prioritize inclusivity, ensuring that underserved areas receive financial services. Our strong ratings (A1 short-term and BBB+ long-term) reflect our commitment to reliability and excellence.

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Technology and Sustainable Development Goals (SDGs)

Mr. Akinyele believes that technology is crucial in helping achieve the Sustainable Development Goals (SDGs) by fostering innovation and improving access to resources. For example:

• Financial Inclusion: Digital tools provide SMEs with access to credit, savings, and investment opportunities, helping to reduce poverty and promote economic growth.
• Sustainability: Technology supports the use of renewable energy and helps businesses reduce their environmental impact, contributing to climate action.
• Education and Skills Development: Online learning platforms make education more accessible, allowing entrepreneurs to improve their skills and competitiveness.
• Innovation in Key Industries: Technology enhances productivity in sectors like agriculture and healthcare, making it easier for businesses to thrive.

At Payaza, we integrate these elements into our services to not only meet immediate business needs but also support long-term development goals, helping SMEs grow while making a positive social and environmental impact.

Transformative Examples of Technology

Technology can significantly change various sectors. For instance:

• Retail: Digital payment systems make transactions easier and provide valuable insights for better decision-making.
• Agriculture: Precision farming tools help farmers increase yields and connect with buyers more effectively.
• Healthcare: Telemedicine platforms expand access to care in underserved areas, allowing health-related SMEs to grow.

These examples show how technology improves efficiency and opens up new opportunities for businesses.

Global Market Access and Trends

Payaza operates in 19 African countries, as well as in North America, the UK, and the Middle East. Our technology facilitates cross-border payments by offering cost-effective and transparent solutions that simplify transactions. We help