OPay earns more from lending than payments as profit hits $90.9 million

OPay Limited reported a significant increase in revenue and profit in the first half of 2026, with earnings reaching $90.87 million, a quadrupling from $21.71 million a year earlier. This growth primarily came from lending activities, which generated $236.12 million, nearly double the $130.55 million earned from payments. The company's revenue surged 136.5% to $467.06 million, indicating a strong upward trend.

Lending income expanded 167.9% to $236.12 million, surpassing payment services' contribution. While payment income grew by 86.9%, reaching $130.55 million, lending income grew faster, widening the revenue gap. Credit income from both self-issued loans in Nigeria and arranged loans in Indonesia accounted for 59.5% of total revenue, with Nigeria contributing about 85%.

The company's diverse revenue streams demonstrate its ability to generate income through multiple channels, but the reliance on lending raises questions about its long-term sustainability and investor appeal. Although payment income is robust, lending income expanded at a faster rate, indicating a shift towards more lending activities.

Higher credit costs and increased loan defaults have impacted the company's profit, but the overall earnings still reflect a positive trend. The company's strategy to tighten consumer lending and focus on lower-risk merchant loans may help mitigate credit losses and improve repayment performance. The ultimate success of this growth model will depend on OPay's ability to sustain profitable lending activities and deliver value to investors in the upcoming US and Nigerian listings.