Africa’s fintech sector is fast becoming a powerhouse for incentives. Beyond simply providing access to financial services, fintech companies are now focusing on creating value through customer loyalty and relevance. This evolution is characterized by the integration of credit, cards and rewards into everyday financial interactions – creating ecosystems that prioritize value, trust and behavioural engagement.
1. Card-Linked Offers: Loyalty at the Point of Spend
Card-linked offers (CLOs) are revolutionizing customer engagement by embedding rewards directly into digital payment systems. This seamless integration eliminates the need for standalone loyalty programmes, enhancing user experience and merchant participation.
Value Proposition:
- It enhances customer retention through seamless reward experiences.
- It provides merchants with a low-tech solution for customer engagement.
- It offers fintech’s valuable insights into consumer behaviour.
2. BNPL & Rewards: Credit with a Side of Loyalty
Buy Now, Pay Later (BNPL) services are gaining traction in Africa, offering consumers flexible payment options. When combined with reward systems, BNPL becomes a powerful tool for building trust and encouraging responsible financial behaviour.
Value Proposition:
- Builds trust in credit systems ampng underbanked communities.
- Encourages healthy repayment habits through positive reinforcement.
- Transforms BNPL from a transactional service to an aspirational financial tool.
Use Cases:
- M-KOPA: Links loyalty rewards to solar and smartphone financing, incentivizing timely payments and promoting financial inclusion.
- Lipa Later: Offers brand discounts to loyal customers, enhancing the value proposition of its BNPL services.
3. Loyalty Themes Driving Innovation in African Fintech
Several key trends are shaping the future of loyalty programmes within Africa’s fintech landscape:
The Big Picture: A Value-Based Loyalty Playbook
Africa’s approach to fintech loyalty is distinctively value-based rather than points-based. By focusing on behaviour, relevance, and trust, fintech companies are creating loyalty programs that resonate with consumers’ daily lives.
New Innovations in the Horizon
In Ghana, Points Africa is gearing up to launch the continent’s first cross-brand loyalty network this June, allowing consumers to earn and redeem points across diverse partners—from fuel to groceries—via mobile money (Source: launchbaseafrica.com+2assiyaq.com+2disruptafrica.com+2thebftonline.com.)
In Morocco, Tookeez is unifying brand-specific loyalty points into a single digital wallet using blockchain, enabling seamless point redemption across multiple merchants (Source: launchbaseafrica.com+2assiyaq.com+2empowerafrica.com+2.)
In Nigeria, CashToken Rewards Africa is offering instant cash and grand prizes for purchases, empowering communities and deepening brand engagement (Source: businessday.ng.)
Conclusively, the convergence of fintech and loyalty in Africa signifies a shift towards more inclusive, behaviour-driven financial ecosystems. By embedding rewards into everyday financial activities, fintech companies are not only enhancing customer experiences but also promoting financial literacy and responsibility. This evolution presents an exciting opportunity for stakeholders to build on the momentum and drive further innovation in the sector.
Our reward fulfilment solutions offer brands and loyalty programme owners a seamless way to reward their customers with high-impact, flexible incentives. Whether it’s digital vouchers, branded Kudosh cards, merchandise, or travel experiences, our solutions can be integrated into existing customer campaigns or loyalty platforms. We handle the sourcing, management, and delivery of rewards – allowing brands to focus on strategy while we ensure timely, relevant, and engaging customer experiences. From spend-based promotions and tiered loyalty rewards to seasonal giveaways and referral incentives, our fulfilment services help elevate customer engagement and retention with rewards that are easy to redeem and aligned with your brand’s goals.
Adeshola Jaiyeola is the Business Development Director for Uwin Iwin based in Lagos Nigeria and has been with Uwin Iwin for 8 Years. In Her role as Business Development Director, she is responsible for business plan & sales strategy development, Designing and implementing Incentive Programs for Employees, Sales and Distribution channels as well as Business Relations and generation within Nigeria and Ghana.
