Most SMEs lack data to improve operations – BudPay

Despite millions of digital transactions occurring daily across Africa, 73 per cent of small businesses lack access to critical data insights needed to transform their operations, payment infrastructure company BudPay has said.

This disclosure was made in a statement on Thursday by BudPay’s Head of Product, Rowland Okondor, during his appearance on Arise Xchange on Arise TV.

He highlighted the urgency of addressing this gap, noting that small and medium enterprises drive 90 per cent of business activity on the continent.

“Leveraging transaction data is essential to empower these businesses,” Okondor said, explaining that BudPay’s new dashboard offers SMEs valuable insights into payment sources and customer behaviour, enabling them to make smarter decisions.

He added that BudPay aims to simplify intra-African transfers and improve financial services through AI, marking a shift in African fintech toward data-driven growth.

Okondor emphasised the potential value of transaction data, saying, “The amount of information we’re sitting on just by processing payments for businesses is fascinating.”

He pointed out that smaller businesses often lack the resources for large data centres or dedicated analysts, making it vital for companies like BudPay to bridge the gap.

This commitment to data accessibility, he said, is reflected in BudPay’s robust dashboard system.

“We’ve built it so businesses can log in and make sense of basic but crucial information—who’s paying them, where payments are coming from, preferred payment methods, peak transaction times, and payment frequencies.”

According to Okondor, these insights help identify transaction patterns and customer behaviour, enabling smarter business decisions.

Okondor noted that BudPay’s platform is designed to democratise access to business intelligence tools that were previously reserved for large enterprises.

He explained that the system integrates payment processing with business operations, saying, “When you send somebody a bank account and they transfer money, you still have to do the work of reconciling and harmonising your business operations with the payments received. With BudPay Business, you don’t have to do that—all payments are immediately tied to your operations.”

BudPay is also addressing the challenges of intra-African transfers, which remain complex despite the continent’s vast economic potential.

Okondor pointed out that intra-African trade makes up just 12 per cent of the continent’s total trade volume, compared to Africa’s trade with China, which reached $282.1bn in 2023.

He attributed this imbalance to barriers like poor infrastructure, high transport costs, and limited regional integration.

Okondor stated that BudPay is working to reduce these obstacles through strategic partnerships and innovative payment infrastructure, making cross-border transactions easier and more efficient.

Looking ahead, he reckoned that artificial intelligence will play a key role in personalising financial services. “We’re leveraging AI to recommend very personal solutions based on transaction patterns and business behaviours,” he explained.

He described this focus on personalisation as the “next frontier in African fintech—using technology not just to process payments but to truly understand and serve businesses’ unique needs.”

Okondor concluded by saying, “The future of African fintech isn’t just about moving money faster—it’s about turning transaction data into business growth. When financial technology empowers businesses with insights and accessibility, it creates ripples of opportunity across the continent.”