Afrigather Dom Okiemute and Ini Udoh began Miden to extend the velocity of card issuance in Nigerian monetary establishments.
For a fintech startup, playing cards are important to drive cost quantity and develop buyer base.
Nevertheless, issuing these playing cards might be advanced and time-consuming as a result of fintechs would not have the dimensions and sources to hitch main card schemes like Mastercard, Visa, and Verve instantly. To work round this, Fintechs associate with established banks that act as issuing companions.
The typical time to construct a card integration system inside a financial institution was about 6-12 months,
say Okiemute and Udoh, who’ve a mixed 13 years of expertise constructing monetary methods throughout Nigerian banks.
Miden’s answer, which strikes the wait time for playing cards from months to weeks, earned them a spot in YC’s winter 2024 batch.
Miden lets companies challenge digital playing cards in USD and Naira by way of customizable and easy-to-use API—a drag-and-drop interface—and pre-built integrations with versatile customization choices. In response to its web site, Miden has issued over 100,000 playing cards and operates in 4 international locations.
“Card penetration is instantly proportional to monetary inclusion in Africa,” Okiemute informed TechCabal, emphasizing the hyperlink between card penetration and monetary inclusion in Sub-Saharan Africa. The spectacular monetary progress in Latin America, partly pushed by the success of Pismo and Pomelo, which concentrate on card funds, drives house his level.
“We determined to enter the house and clear up the issues,” he stated.
Moving into YC’s newest batch was the icing on the cake and validated their resolution to construct in stealth for six months.
Now approaching its first yr, it claims to serve 25 companies whereas processing ₦3.5 billion ($3.2 million) month-to-month. The enterprise additionally not too long ago stated it has $100,000 month-to-month recurring income (MRR).
“We’ve been capable of purchase not simply customers of different platforms, opponents now leverage our platform,” he stated.
Miden makes cash by charging transaction charges on the playing cards they challenge. It additionally costs subscription or usage-based charges for companies accessing their platform and issuing playing cards. The enterprise claims to have a 99% uptime.
Miden’s speedy entry into the $134.4 billion card market has not been with out its challenges. In response to Okiemute, Miden has struggled to seek out expertise to construct its answer. “Individuals with localized area information are scarce,” he stated.
Whereas Miden’s plans are formidable, the startup is enjoying in a discipline rocked by chargeback fraud, costing companies hefty charges and potential shutdowns. In November 2023, Union54, a Zambian fintech shut down after an tried $1.2 billion chargeback fraud. Moreover, fluctuations within the Nigerian forex pose dangers for USD-based digital playing cards.
Wanting forward, Miden says it’ll increase its ambitions past digital playing cards, aiming to turn into a full-fledged core banking supplier providing bodily USD playing cards and doubtlessly different functionalities.
