By Juliet Umeh

Nigerian entrepreneurs, particularly those in the Micro, Small, and Medium Enterprises, MSMEs sector, have been advised to use digital financial solutions to improve their operations and profitability. 

At a virtual webinar at the weekend, hosted by the Routelink Group, the parent company of RoutePay – a fintech company offering payment solutions, it is noted that embracing financial solutions would also help MSMEs leverage on the advantages inherent in the changing business landscape. The webinar is titled: Driving Financial Inclusion through Innovative Digital Payment Solutions. 

The guest speaker, Akeem Salam, a group head at 9PSB, said integrating digital payment systems can help MSMEs achieve higher sales volumes and profitability. 9PSB is partnering with RoutePay in the deployment of its digital solutions. Apart from being useful in monitoring sales and revenues, Salam said digital solutions are more secure than cash. ”Handling cash poses various risks, while digital payments allow for traceability, making it easier for merchants to identify fund leakages. 

“Additionally, with digital payments, you can monitor your transactions in real-time using mobile devices or laptops. Digital payment options facilitate business scaling; for instance, you can operate from Ikeja and sell to customers anywhere in the country. This allows entrepreneurs to expand their businesses without the need for multiple physical locations.”  

Noting that many MSMEs remain hesitant to transition to digital solutions due to concerns over cybersecurity and the costs associated with digital adoption, Salam stated that businesses should leverage digital payment infrastructure in achieving their objectives while addressing the issues of security for their transactions and funds. 

He explained that financial literacy and financial inclusion are vital for the successful management of businesses. ”By digitizing your operations and payment processes, you can save money. It is safer to receive payments via bank transfers since you won’t have to worry about counterfeit notes or counting cash at the end of the day only to find discrepancies.

“Moreover, you can take your business online to tap into a wider market, as more people now prefer shopping online. We encourage MSMEs to explore digital platforms that offer these services, which often come at little to no cost but with significant benefits.”  

He also emphasized the importance of adopting insurance as a critical component of financial infrastructure, noting that  ”Insurance is essential because there are unforeseen events as business owners that you cannot anticipate. MSMEs can particularly benefit from insuring goods in transit, as anything can happen along the way. Therefore, along with establishing a digital wallet, it’s wise to consider insuring your goods.’’ 

 On his part, the Managing Director of RoutePay, Abayomi Olomu, observed that with the increasing availability and accessibility of e-wallets and fintech platforms, MSMEs must actively explore these financial tools to streamline operations, improve cash flow management, and enhance overall efficiency. 

“We have 40 million Nigerians running small businesses, so financial inclusion for these individuals is important. That is why RoutePay is here to help empower them with innovative products and services that can help them overcome challenges,” he said. 

Olomu stressed that with the crucial role of the MSME sector in Nigeria’s economy, business owners must embrace digital financial solutions provided by fintechs like RoutePay to boost their enterprises.