M-KOPA has reported that it has disbursed over 231 billion naira (US$170.5 million) in credit to more than one million customers in Nigeria since 2019. The fintech’s lending primarily supports smartphone purchases, followed by small cash advances, enabling low-income households to access digital services and credit without the need for traditional collateral.
M-KOPA operates on a pay-as-you-go model, where borrowers make daily micropayments, allowing them to gradually repay loans while managing cash flow constraints. This approach eliminates hidden fees and reduces barriers for underserved customers who lack formal banking access or credit histories. By leveraging mobile technology and alternative data, the company can assess creditworthiness and extend financial services to households typically excluded from conventional financial institutions.
According to company officials, the platform’s microloan products have become a key driver for digital inclusion, allowing customers not only to own smartphones but also to access mobile-based services such as mobile banking, digital payments, and internet connectivity. This contributes to broader financial and digital empowerment for low-income households across Nigeria.
Since 2019, M-KOPA has steadily expanded its customer base, positioning itself as a leading digital lending provider in the country. The firm emphasizes transparency and affordability, with no collateral requirements and no hidden fees, making its offerings accessible to informal sector workers, small-scale entrepreneurs, and rural households.
Industry analysts note that the company’s micropayment-driven lending model provides a sustainable mechanism for scaling credit in emerging markets while minimizing default risk. The approach aligns with global trends in fintech, where digital platforms are increasingly filling gaps left by traditional banking, particularly in regions with high mobile penetration but limited financial infrastructure.
The US$170 million disbursed reflects the growing demand for flexible, digital-first credit solutions in Nigeria. By enabling smartphone ownership, the company also indirectly supports the growth of mobile commerce, online education, and e-government services, further integrating low-income households into the digital economy.
M-KOPA’s model underscores the potential of fintech innovation to expand financial inclusion across Africa, especially for populations traditionally excluded from formal credit channels. By leveraging alternative data and small, manageable repayments, the platform empowers customers to build credit histories, access essential digital tools, and improve their livelihoods over time.
The company’s leadership indicated that the focus remains on expanding both credit offerings and digital service accessibility across Nigeria and eventually other African markets, leveraging its proven pay-as-you-go and AI-driven credit assessment systems.
In conclusion, M-KOPA has successfully disbursed US$170.5 million in credit to over one million Nigerians since 2019, using a collateral-free, micropayment-driven model. Its operations not only provide affordable financing for smartphones and small cash loans but also promote digital and financial inclusion, empowering low-income households to participate in the digital economy and improve economic resilience.
