Hydrogen, the fintech subsidiary of Access Holdings, has reported a profit after tax of N1.8 billion for the 2024 financial year.
This represents over ten times growth when compared with the N161 million recorded by the fintech firm in 2023.
Hydrogen competes with other fintechs like GTCO’s HabariPay, as well as independent heavyweights like Flutterwave, Moniepoint, and Paystack, all vying for dominance in Nigeria’s evolving digital payments ecosystem.
It offers a wide range of products and services, including InstantPay, Payment gateway, POS, Card, and Switch.
Fintech growth driven by scale and efficiency
Launched in 2022 and fully operational by 2023, Hydrogen has seen rapid growth, fueled by increasing transaction volumes, an expanding partner ecosystem, and a strategic focus on operational efficiency.
- In 2024, fintech’s operating income also surged by 400% from N2 billion in 2023 to N10 billion in 2024.
- Hydrogen’s suite of products includes InstantPay, Payment Gateway, POS terminals, Cards, and Switch services.
- In 2023 alone, the company processed transactions totaling approximately N15 trillion across its platforms.
Bank-owned fintechs making waves
Hydrogen’s performance makes it one of the two banks’ fintech subsidiaries that saw tremendous growth last year.
Nairametrics earlier reported that HabariPay, the fintech subsidiary of Guaranty Trust Holding Co Plc, recorded N3.8 billion profit after tax in 2024 as the bank pushes further into the fintech space.
- The fintech’s profit represents 81% growth when compared with the N2.1 billion it recorded in 2023. This is also a reflection of the increase in operating income recorded by the fintech company in the period under review.
- According to the 2024 financial report, HabariPay’s gross revenue increased by 23% to N5.8 billion in 2024 from N4.7 billion recorded in 2023, underpinned by significant growth on all key income lines.
- However, Stanbic IBTC’s fintech, launched in late 2023, is still in the red, reflecting the broader trend among Nigerian fintechs that are currently prioritizing growth and cash flow stability over short-term profitability.
- StanbicIBTC, in its audited financial results for 2024, disclosed that Zest Payments posted a N2 billion loss in the year.
Group performance
Beyond the astronomical growth in Hydrogen’s profit, Access as a group also posted an impressive performance with a pre-tax profit of N867.019 billion, up from N729.001 billion a year earlier.
The bank holding company also reported a surge in gross earnings, rising to N4.878 trillion from N2.594 trillion reported a year earlier.
Profit after tax stood at N642.22 billion, representing a 3.7% increase from the N619.32 billion posted a year earlier.
