Fintech in Africa

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Before the Presidential election in Nigeria, the Central Bank of Nigeria gave a directive that reduced the amount of Naira in circulation thus, most transactions in the country are done electronically. Cash is now a scarce commodity. In the last two months, I have not seen cash of #20,000 ($28) and everyone in the country, including the market petty traders, now accepts bank transfers as that is the only means for transactions.

While this seems to be a significant step toward a cashless policy, the government and the banking system are not ready for it as there have been millions of failed transactions, false debits and a series of network issues and everything turns into a mess. Even the best banks in Nigeria could not handle the number of transactions people carry out daily smoothly. I still have some false debt that I have not attended to because of so much stress around using the bank lately. Online banking services have been messy and the only way to get money reversed is by complaining through the banking hall.

However, it is a different situation with FinTech, as they are now the most reliable platforms to use for day-to-day transactions. The customer service and everything around most FinTech companies is way perfect than the traditional banking system as they bypassed the traditional banking infrastructures and make transactions quicker.

The growth of FinTech is moving rapidly and a few of them are incorporating stablecoin to enable international transactions. The FinTech market is growing more in South Africa, Egypt, Nigeria and Kenya. I have a friend who is building a wallet for Africans that makes it easy to travel without exchanging money for another countries’ currencies. So, if you have 1m naira in your wallet in Nigeria, you could travel to Kenya and switch to shillings and get the equivalent value, and they are incorporating USDT to make it even more efficient.

FinTech is providing the actual solution for the day-to-day transaction here in Africa and incorporating cryptocurrency in them would even make the transaction faster.

Posted Using LeoFinance Beta



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