Fintech has marked a new frontier in banking sector and mobile phone technology with an ever increasing number of Small and medium Enterprises using it in their transactions to enhance performance. However it is not clear on the role the Fintech plays on the growth of SMEs. Majority of the SMEs owners use Fintech as opposed to formal banking for their daily transactions. The study established that the use of Fintech contributed significantly to the growth of SMEs through increased sales volume and net profits. In respect of conceptual framework, Fintech transactional costs, accessibility and security have all been shown not to affect SMEs growth significantly through the service despite increased enrolment in Fintech services. This study achieved its objective and obtained detailed information arising from the impact of Fintech on the growth of SMEs.






1.1 Background of the study

financial technology (FinTech) refers to innovative financial products or services provided through technology. With technological advances (such as mobile and Internet) and their global adoption, consumer expectations are changing. Many small businesses, start-ups, and midsize businesses work on financial technology products, which can have a disruptive effect on financial services channels. Financial technologies have also become a buzzword for innovative small businesses that are developing financial technologies and related products. This definition is useful for describing the dynamic world of start-ups in the financial technology sector. However, it easily creates an image in which the start-up becomes the focal point, unlike the technology itself. In practice, financial technology is not an exclusive domain of financial technologies, as it is also used by banks, MFIs and more traditional small and medium-sized enterprises. The recent and rapid emergence of financial technology in Nigeria’s financial system and in small and medium-sized enterprises has sparked a continuing interest among stakeholders to question the appropriateness of the technologies adopted. Some of the stakeholders are enthusiastic about the adoption given the innumerable benefits obtained, such as the ease and speed of service delivery operations, while others are not, worry about the risks involved. associated and anticipated. This risk is linked to the weak infrastructure and technical knowledge of these technologies. In addition, Nigerians lack financial education, which would encourage users / customers to accept innovative products and services derived from technology. By focusing on SME operations, researchers are worried about the influence of financial technology on SMEs.

BNY Mellon (2015), in his report on the Orientation of Payment Innovations, aims to examine the growing capabilities of financial technologies, both in the consumer / retail market and in the wholesale / business; explore how, where and when payments are made and who makes them easier; understand the monumental role of FinTech and the solutions it presents in the company in general. After conducting a series of surveys and excerpts from recent publications such as Accenture (2015), their findings show that the payments sector is evolving, driven by a sharp increase in innovation, changes in of consumption. and many industries. initiatives and changing market conditions; Technology innovation centered on the SME market has been particularly active (stimulated by the impact of the financial crisis), which has led to the emergence and growing popularity of non-traditional forms of financing. In his conclusions, Louis (2014) found that national firms (SMEs) offered more than 80% of employment opportunities in South Africa.

In addition, he stressed that inclusive growth of small businesses would only be possible if the domestic business sector, which includes small businesses such as agriculture and non-farm businesses, could increase and increase productivity. Oladejo and Adereti (2010) found that the Internet and Internet technologies multiplied and accelerated in the 1990s, creating a global and cost-effective business and communication platform for businesses. Despite the huge IT investments of recent years, it has been extremely difficult to demonstrate the effects of this type on organizational performance (Mahmood and Mann, 2000). Nigeria is largely a money economy, with more than 90% of funds residing outside the banking sector compared to the developed world, where the currency in circulation is 4% in the United States. UU and 9% in the United States UU As presented by (Ovia 2002 and Ojo 2004). While the monetary economy is characterized by psychology, it aims to maintain and physically touch a culture based on ignorance, illiteracy, lack of security awareness and appreciation of the merit of digital payment. . Public policies must give way to new innovations in the financial sector.


1.2 Problem Statement

By taking a closer look at the meaning of each of the aspects of the dimensions identified, the term “technologies”, the definitions coincide in the technologies that are the basis of financial services, such as mobile payments, data analysis, participatory forms or cryptocurrencies. Referring to “organizations”, sources refer to new companies and companies that focus on providing financial services or platforms with IT support. The “money flow” is equal to the investments, unloaded to support the development of such companies. The dimension of the mechanisms includes the creation, modification or improvement of the service / product / process or the existing business model in order to improve the quality for the customer (transparency, accessibility, reduction of costs or costs, etc.).  These activities are supported by the use of technological advances; This is reflected in the “computer application to financing and service delivery” aspect. The disruptive function of financial technology can be explained by the creation of alternatives to existing services by financial institutions, for example by replacing the bank as an intermediary. The study will then examine the effect of these interruptions on the performance of SMEs.

1.3 Purpose of the study

The purpose of this study is to examine the impact of FINTECH on the growth of smes in Nigeria, using paystack a case study. Specifically, the study will:

investigate the level of usage of paystack by SMEs

determine the impact of paystack in business savings and loan ratio

assess the impact of paystack on sme constomer base

Significance of the study

It is hoped that the results of this study will make up for the lack of sufficient information on the effects of FINTECH on SME. The results of this study can also be useful for decision makers in various sectors of government. For example, in the Educational program developers will be informed when they develop a program for the education sector. In the business sector it will help business men, especially those who are in charge of SME to know what tools to use to effectively utilize financial service. The results of the these studies are likely to influence the academic research of other researchers likely to Interested in this area of knowledge and initiate appropriate mitigation measures.

Study hypotheses

The following hypotheses were formulated for this study:

HO: Pay-stack does not have a significant impact on business savings and loan ratio

HO: Pay-stack does not have a significant impact on SME customer base



Scope and Limitations of the Study

The study scope is limited to investigating the impact of FINTECH on the growth of smes in Nigeria, using paystack a case study. Limitation faced by the research was limited time and financial constraint

Definition of Basic terminologies

FINTECH: computer programs and other technology used to support or enable banking and financial services

Paystack: is an online payment gateway that makes it easy for merchants to accept credit and debit card payments online from users or customers

Internet banking: a method of banking in which transactions are conducted electronically via the Internet.

Organization of study

The study is grouped into five chapters. This chapter being the first gives an introduction to the study. Chapter two gives a review of the related literature. Chapter three presents the research methodology; chapter four presents the data analysis as well as interpretation and discussion of the results. Chapter five gives a summary of findings and recommendations.


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