M-KOPA's smartphone-to-credit model expands as Nigeria becomes key market

M-KOPA has evolved from helping Africans buy smartphones on credit to using those devices as a gateway into broader digital financial services, leveraging repayment data to build credit profiles for the financially excluded. The company reports serving nearly 10 million customers across Africa and deploying over $2 billion in credit since 2020.

In Nigeria, M-KOPA's fastest market to reach one million customers, cash loans have become its fastest-growing business segment. Managing Director Babajide Duroshola notes customers can borrow multiple times with timely repayment, contrasting with infrequent smartphone purchases. The CFO states half of M-KOPA's customers live on less than $5.50 daily, with 38% accessing formal credit for the first time.

The company reports portfolio loss rates between 10-12% and returned to profitability in 2024 with $9.2 million profit after a prior year loss. By turning smartphone repayment data into credit scores, M-KOPA creates financial pathways for Nigerians traditionally underserved by banks. Will you consider using your smartphone payment history as a stepping stone to access formal credit products?

SOURCE: https://techcabal.com/2026/06/19/m-kopa-smartphone-repayments-lending/