Humans’ constant pursuit of convenience, security, and efficiency has driven innovation and transformed our lives. With the internet boom of the late 20th century, online payments became possible, setting the stage for e-commerce transactions. Today, digital cards are gaining more acceptance, offering enhanced security through tokenisation and encryption.
Sudo Africa, a leading fintech startup, provides an Open API for issuing physical and virtual cards for local and international payments is one of the startups leading the cultural shift in payments in Africa.
The card issuing company introduced Digital First Cards, a solution that eliminates the need for physical cards by allowing customers to use their phones for contactless transactions. This innovation empowers businesses, merchants, and individuals to offer tailored financial services quickly.
Nigeria’s digital payments sector has grown rapidly for years, yet contactless payment—common in markets like Europe and China—remains a rarity. The traditional card production process can be a costly endeavor for Fintechs and B2B companies, with operational costs ranging from ₦1,800 to ₦2,000 per card. However, due to Central Bank of Nigeria (CBN) regulations, these cards must be sold for only ₦1,000, leaving many businesses operating at a near-loss.
This is where Sudo’s Digital First Cards comes in, a game-changing solution that significantly reduces the operational costs of card production. By leveraging digital technology, Sudo has managed to slash costs, enabling businesses to break free from the constraints of traditional card production.
The introduction of Digital First Cards is poised to revolutionize the payment ecosystem by eliminating the need for physical cards. By enabling customers to make contactless transactions using their phones and increasing profit margins without compromising on quality.
Aminu Bakori and Kabir Shittu, co-founders of Sudo Africa, were inspired to build their company after encountering a challenge at their previous startup. While developing a mobile wallet system that enabled users to consolidate multiple financial institutions into one platform for seamless transactions, they struggled with card issuance. This experience sparked the idea for Sudo Africa.
“The role of contactless payments cannot be emphasized, especially at this period where the country is faced with financial fraud risks just like other countries of the world.” Ajibade Laolu-Adewale, Chairman of the committee of E-Business Industry Heads (CeBIH), said while endorsing contactless payment in a stakeholder meeting last year.
The Importance of Sudo’s Digital First Cards
By integrating seamlessly with banks and fintech applications via a Software Development Kit (SDK), financial institutions can instantly issue digital cards with Sudo Africa. These digital cards are securely stored in the cloud, not on devices. When a customer initiates a transaction, a temporary encryption key is generated to authorize the payment without exposing sensitive card details. This enhances security, ensuring that even if a device is compromised, fraudsters cannot access stored card information.
Customers can use their digital cards via Near Field Communication-based tap-to-pay for compatible smartphones or QR code payments for devices without NFC capabilities. Merchants can accept payments using NFC-enabled POS terminals or by scanning customer-generated QR codes.
Sudo Africa’s digital card solution offers a substantial reduction in costs associated with physical card production, distribution, and replacement. This cost savings enables financial institutions to allocate resources more efficiently.
Another key benefit is the increased convenience afforded to customers. With digital cards, customers no longer need to worry about carrying a physical card, reducing the risk of lost, stolen, or damaged cards. This convenience factor enhances the overall payment experience.
Security is also significantly enhanced through Sudo Africa’s digital card solution. The use of dynamic CVVs for each transaction makes fraud virtually impossible, providing customers with an added layer of protection. In addition to these benefits, Sudo Africa’s digital card solution provides customers with real-time transaction tracking and account activity monitoring. This level of transparency and control empowers customers to manage their finances more effectively.
Sudo Africa’s digital card solution contributes to a more sustainable environment by reducing plastic waste associated with physical cards. This eco-friendly aspect aligns with the growing demand for environmentally responsible solutions.
Sudo Africa: Empowering Digital Transactions
Sudo Africa is revolutionizing financial inclusion by providing three distinctive benefits. Firstly, the platform enables financial institutions to issue cards within days, a significant reduction from the weeks or months traditionally required by banks. This streamlined process not only cuts down wait times but also allows businesses to offer premium services to their customers, thereby accelerating their growth and revenue generation.
Another key advantage of Sudo Africa is its bespoke card services. The open API’s customizability empowers users to create and manage their own cards, set spending limits, and even specify usage locations. This tailored feature grants users control, enabling them to decide which features are essential for their needs. Businesses can leverage this feature to prevent fraud and efficiently manage expenses. Additionally, users can personalize their cards’ design, incorporating their logos, colors, and other desired elements.
Lastly, Sudo Africa offers an embedded banking-as-a-service through its affiliated microfinance bank, Safe Haven, allowing companies to create and manage customer accounts, issue account numbers, and provide banking services. This feature facilitates faster development, market entry, and scalability, while also addressing compliance and KYC requirements.
