Bitlipa is a service provider for digital payments and settlements co-founded by Apollo Eric, who also acts as the CEO of the company. For this episode of In the Spotlight, we spoke to Eric about Bitlipa’s mission and the transformative power of blockchain technology in driving financial inclusion across Africa.
Bitlipa changes how businesses manage their finances. By leveraging blockchain technology, Bitlipa aims to revolutionise the payment cycle, from sourcing to merchant payments, for SMEs. Through the utilisation of crypto stablecoins for settlement and fiat processing on the backend, Bitlipa offers a seamless solution that bridges the gap between traditional finance and the burgeoning digital economy.
Bitlipa enables access to capital to SMEs
Central to Bitlipa’s business is its commitment to providing access to capital for SMEs. In Africa in particular, they do not have sufficient access to capital that traditional financial institutions could offer.
By recording transaction data on the blockchain, Bitlipa offers proof of business existence, enabling liquidity providers to support businesses based on verifiable information rather than stringent requirements. This democratisation of access to capital is essential for empowering SMEs to thrive and expand, ultimately driving economic growth across the continent. As Eric points out, Africa’s economy is mainly driven by SMEs:
‘Small and medium sized enterprises actually form the backbone of the African economy. So they employ most of the people, they provide almost all the e-commerce or commerce in the region. And I think they need support in terms of small, working capital and based on this data, we are able to provide that.’
Moreover, Apollo Eric highlights the cost-saving potential of blockchain technology, in particular the BSV blockchain with its miniscule fee structure, in streamlining transactions and eliminating intermediaries. With traditional payment systems incurring significant transactional costs and frictions, blockchain offers a paradigm shift by establishing trust among participants without the need for costly verification processes.
For SMEs operating on narrow margins, the ability to reduce transaction costs to almost negligible levels is a game-changer, enabling them to allocate resources more efficiently and reinvest in their businesses.
Digital inclusion and impact on the youth
Beyond financial transactions, Apollo Eric emphasises the broader impact of blockchain in fostering digital inclusion, particularly among Africa’s youth population. With a median age of 17, Nigeria boasts a burgeoning cohort of tech-savvy individuals eager to harness technology for economic empowerment.
Blockchain, with its open-source nature and potential for direct peer-to-peer transactions, offers participation in the digital economy, ensuring that young people have access to opportunities. In the interview, Eric highlights this aspect as an important mission for the future:
‘Young people want an opportunity and access. And I think blockchain has the playing ground for all of us to be able to join in the digital economy and participate effectively. I think this is a very, very big value that needs to be harnessed because young people, if you don’t engage them meaningfully, it’s a ticking time bomb. And I think we need to find a way to really bring them into this digital economy and meaningfully participate.’
Use-cases beyond finance
Bitlipa’s vision extends beyond financial transactions to encompass data ownership and content distribution. By making data user-centric and eliminating intermediaries, blockchain enables content creators to directly monetise their work and connect with their audience, bypassing traditional gatekeepers.
This shift not only empowers content creators but also fosters creativity and innovation across various industries, from music to film. Eric points out that this is particularly relevant for Nigeria, where the creative industry is an important part of the economy.
Bitlipa exemplifies the transformative potential of blockchain technology in driving financial inclusion and empowering African businesses. By providing access to capital, reducing transaction costs, and fostering digital inclusion, Bitlipa is paving the way for a more equitable and prosperous future for SMEs across the continent.