OurPass, Nigeria’s one-click checkout platform, raises $1M Pre-seeding, Wants to Build ‘Fast for Africa’

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OurPass, Nigeria's one-click checkout platform, raises $1M
Pre-seeding, Wants to Build 'Fast for Africa’

Online shopping is a favorite for us. We love to shop at e-commerce shops and subscription-based websites. __S.2__ __S.3__

Fast, a high-flying start-up in the United States, already meets this demand. The company has a product that is available worldwide, but it’s not yet widely used in Africa. OurPass is interested in developing one.

Abuja-based startup Fast for Africa, described as “The Fast for Africa”, also has a pre-seed round of $1 million to help scale the business. According to the company, the round was led and invested by Tekedia Capital as well as angel investors representing Fortune 500 companies. __S.8__

The E-commerce checkout issue is something that CEO Samuel Eze has experienced, though from a different perspective.

He told TechCrunch that he watched his mother struggling to shop online. “I saw her create multiple accounts on various platforms and go through a thorough checkout process.” She ended up moving to another online shop and dropping her card in many instances. __S.12__

Nigeria’s ecommerce sector is heavily dependent on cash delivery. According to a poll, 70% of Nigerians prefer making payments online over cash delivery.

However, the story is changing slowly with Paystack or Flutterwave making it much easier for merchants online to receive payments.

Statista reports that 27% of all online payments are made with credit cards. This is in addition to bank transfers and cash. __S.17__

Merchants still face major problems with checkout. Annually around 75% of shoppers abandon shopping carts due to the cumbersome checkout process with lengthy forms and multiple logins.

OurPass, a mobile app that allows consumers to shop in one click is an attempt to address this problem. __S.21__ __S.22__

Eze stated that “We created an identity layer across web to allow consumer identity to send across to each online store they visit to shop from.”

OurPass customers will no longer need to complete any forms and won’t have to deal with log-in issues. The catch is that they cannot shop with merchants who have OurPass API connected to their platforms. __S.26__ __S.27__

OurPass has decided to create its own marketplace of consumers and merchants. Fast, for example, requires that merchants install Fast Checkout. Users can then access Fast through an e-commerce site or the merchant’s website. OurPass users must download the application to shop with merchants on the platform.

OurPass was initially able to allow users to enter their payment card information when they completed their forms. Users didn’t need to download any application. __S.32__

We didn’t want to lose our USP, one-click shopping. Consumers can check out with one click only and have their card flagged fraudulently.

This means that both merchants and consumers are given virtual accounts numbers which can be used to access a wallet. To check out at a shop, consumers will need to first fund their wallets. Once they have checked out, money flows into merchants’ wallets. __S.36__

OurPass is able to connect with a handful of merchants through its platform. OurPass has mainly been working with small-scale businesses who use Storemia (an online storefront platform) which was acquired by OurPass recently. __S.39__

OurPass offers customers free shipping on every order. To achieve this goal, the company has partnered up with logistic companies such as MAX.ng or Gokada.

The one-year-old company charges 0.8% per transaction, capped at N1,000 (~$20) for merchants and a commission of 5% on every product sold — Eze also hints at a plan for the company to introduce subscriptions.

Since beta launching in May this year, OurPass claims to have done $500,000 in transaction value and hopes continuous growth will see it become the go-to platform for consumer checkout in Nigeria by 2023.

Eze claims that OurPass will use funds to develop and expand its technology.

Publited Fri, 10 Sep 2021 at 08:05.42 +0000

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