Ola Oyetayo of Verto: Building a Profitable Cross-Border Fintech for Emerging Markets

Episode overview: In this conversation, Verto co-founder and CEO Ola Oyetayo shares the journey of building a cross-border payments platform that tackles the unique challenges African businesses face when making international transactions. Since graduating from Y Combinator in 2019, Verto has established itself as what Oyetayo describes as a profitable and cashflow positive fintech serving multiple African markets. Incidentally, the company recently made headlines after winning the prestigious $1 million Milken-Motsepe Prize in FinTech. He discusses his team's pragmatic approach to addressing payment barriers in emerging markets, why traditional financial institutions have failed to serve these regions effectively, and how technology can disrupt traditional banking networks that have historically excluded certain markets. Andile Masuku engages Oyetayo on the evolution of fintech in Africa, the role of privilege and networks in business success, and the future potential of stablecoins to revolutionise cross-border payments in ways that might prove more transformative for emerging markets than developed ones. Key topics: - Verto's position in the cross-border payments landscape - The strategic decision to focus on B2B rather than consumer payments - The untapped $286 billion trade flow between Africa and China - Why 96-97% of business cross-border payments still go through traditional banks - The innovator's dilemma Verto faces with the rise of stablecoins Notable points: 1. In 2018, Oyetayo launched Verto's business model alongside his co-founder Anthony Oduu after spotting a solutions gap for African businesses making international payments outside of traditional banks 2. Verto has been profitable and cash flow positive for approximately 18 months 3. How a chance meeting with legendary VC Vinod Khosla at YC in 2019 first turned him on to the stablecoin investment opportunity—years before they became mainstream 4. The company operates in Nigeria, South Africa, Kenya, Tanzania and the Francophone region 5. Despite previous experience in institutional finance, Oyetayo admits "ignorance is bliss" helped him tackle a problem others saw as too risky 6. The potential of stablecoins to solve liquidity, volatility and capital control challenges in emerging markets Listen out for Oyetayo's take on Paystack's B2C play Zap, the fintech ecosystem implications of Moniepoint's "unicornification," and his contrarian insight that stablecoins will revolutionise emerging markets while having minimal impact in developed economies: "This is not a popular opinion... There's just no case for stablecoins in developed markets. People talk about, oh, it's going to disrupt Visa and MasterCard... I don't see that coming anytime soon." Image credit: Verto