Nigerian Fintech Nearpays Claims Title at AI for Good Innovation Factory Grand Finale
Nigerian fintech startup Nearpays has made history by becoming the first African company to win the AI for Good Innovation Factory Grand Finale, a prestigious global competition organized by the International Telecommunication Union (ITU) as part of the United Nations AI for Good Global Summit. Nearpays outperformed more than 500 startups from across the globe to secure this remarkable accolade.
A Competitive Journey through African and Global Stages
The AI for Good competition, which is a collaborative effort among multiple United Nations agencies, invites AI-driven startups to propose innovative solutions to social and economic challenges. Nearpays’ journey began in Johannesburg, where it triumphed in the African regional tournament, subsequently advancing to the semi-finals in Geneva and ultimately clinching the grand finale. This victory signifies a pivotal moment for the continent, marking the culmination of a contest that had previously seen no African champions.
Bridging Payment Gaps for SMEs in Africa
Founded to tackle a significant structural gap in Africa’s payment infrastructure, Nearpays focuses on small and medium-sized enterprises (SMEs) that often lack access to traditional point-of-sale (POS) terminals. While digital finance continues to flourish on the consumer side, many merchants, especially in rural and underserved areas, are still excluded from the digital payments landscape due to high costs, limited hardware availability, and implementation challenges.
Innovative SoftPOS Technology at the Core
The company’s flagship solution is SoftPOS, an AI-powered platform that transforms compatible Android smartphones into payment acceptance devices. This allows merchants to process contactless card payments without needing specialized hardware. Unlike typical add-on features, AI is integrated throughout the entire operational framework, enhancing payment processing, compliance workflows, fraud detection, and overall business operations.
A Design Choice Addressing Local Challenges
The platform’s standout feature is its ability to function both online and offline, a critical advantage for merchants who can continue processing payments during internet outages. This design choice is particularly attuned to the realities of African infrastructure, setting it apart from many globally designed SoftPOS solutions that often overlook these challenges. This engineering decision underscores Nearpays’ commitment to providing fintech solutions that meet the diverse needs of a market characterized by varied mobile data coverage.
Acknowledging Support and Encouraging Local Innovation
Nearpays attributes its success to years of dedicated product development and customer engagement. The company expressed gratitude to the United Nations, ITU, and the AI for Good initiative for nurturing an ecosystem that empowers innovators to address real-world problems with AI. The victory serves as a powerful message to other African entrepreneurs, affirming that technologically driven solutions aimed at local challenges can thrive on the global stage, rather than being relegated to a subordinate status within “emerging market” categories. While the announcement did not clarify the specifics of the prize structure or next steps for funding, the recognition itself is a significant milestone.
AI for Good’s Expanding African Impact
This achievement comes at a time when AI for Good’s presence is markedly increasing within Africa. The launch of the AI for Good Global Commission in July introduced eight Africans among the 44 founding members, co-chaired by Rwandan President Paul Kagame and Salesforce CEO Marc Benioff. Notable appointments include Nigeria’s Bosun Tijani, Namibia’s Emma Theofels, and Togo’s Sina Lawson. While this committee aims to influence the policy framework surrounding global AI governance, Nearpays’ triumph exemplifies how African innovators are arguing for the relevance of AI designed within the local context in global discussions.
Nigeria’s Growing Influence in the AI Landscape
The timing of Nearpays’ win is particularly favorable for Nigeria’s burgeoning fintech sector. According to the UNESCO Government AI Readiness Index, Nigeria currently ranks as the leading AI nation in Africa. Recent developments include Paystack’s introduction of an AI agent checkout index and Meta’s operationalization of an AI accelerator in Nigeria until 2025. Additionally, the nation’s AI Regulation Bill is under legislative review. Nearpays’ international victory adds a layer of validation to a national ecosystem that has established its AI certification framework. The pressing question now is whether this global acknowledgment will catalyze further investment, facilitate cross-border merchant deployment, and encourage expansion of SoftPOS into broader African markets, where the challenges facing SMEs are often compounded by infrastructural limitations.
