Thepeer, a Nigerian fintech startup focused on digital wallet interoperability, announced its closure on April 1st, 2024.
In a blog post by co-founders Chike Ononye and Trojan Okoh, the company attributed the shutdown to challenges with regulatory compliance and slower-than-anticipated adoption of digital wallets in the market.
Launched in 2021 August, Thepeer aimed to provide a seamless way to transfer money between various digital wallets and pay for goods and services directly from those wallets.
In 2022, it raised $2.1 million in a seed round to achieve this mission.
While acknowledging the innovative nature of their technology, the founders admitted that “exceptional technology alone wasn’t sufficient.”Our unique service had its challenges,” the blog post reads.
“The first being compliance issues that hindered us from launching key wallet providers or maintaining their services.”
The fintech also faced difficulties in educating users about the benefits of their platform, given the relatively low adoption rate of digital wallets in Nigeria.
Presented with these hurdles, Thepeer made the “difficult decision” to return remaining capital to investors.
The company explored options like a significant pivot, a merger or acquisition, but ultimately concluded that these paths were not viable.
While Thepeer will be placed in “maintenance mode” for the foreseeable future, the co-founders expressed hope of finding a “new home” for the platform.
Thepeer’s closure highlights the challenges faced by fintech startups in Africa, particularly those navigating the complexities of regulatory environments and fostering user adoption of new technologies.
The company’s journey serves as a cautionary tale for the importance of market alignment and user education alongside innovative solutions.