If you’ve recently browsed the social media pages of Quidax, Yellow Card, and Busha—three prominent crypto startups in Nigeria—you might have noticed a common theme: a strong push towards their B2B crypto payments services. Both Yellow Card and Quidax are running paid promotional campaigns for their B2B application programming interfaces (APIs), while Busha is primarily promoting its services organically.
A Growing Focus on B2B Solutions
These companies are highlighting their B2B payment solutions to address the increasing demand from African fintechs seeking to offer crypto payments without navigating complex regulations. By prioritizing B2B services, these startups aim to establish a more stable and scalable market presence alongside their retail offerings.
“There was a gap in the market,” said Tochy Emereole, marketing lead at Quidax API Business. “High crypto adoption in Nigeria has led many to explore building crypto products, but a talent gap exists.”
According to a Hashed Emergent report, Africa falls behind other regions in blockchain talent. Despite Nigeria leading the continent with the most Web3 developers, they represent only 4% of the global developer workforce. Building traditional fintech solutions differs significantly from Web3 development, which requires specialized skills in blockchain technology and programming languages like Solidity and Rust.
Meeting Customer Demand
As cryptocurrencies gain traction in Nigeria, Kenya, South Africa, and Ethiopia, traditional fintechs are feeling the pressure to integrate crypto and stablecoin payment options. Companies like Flutterwave, Chipper Cash, and Grey have started incorporating these solutions to address cross-border payment needs and navigate foreign exchange shortages.
The API Advantage
The pitch from these crypto startups is straightforward: businesses can leverage their APIs to build full-stack applications and digital asset exchanges without the extensive technical expertise typically required. This model allows traditional fintechs and neobanks to integrate crypto payments seamlessly.
Simplified Integration
Developers only need to understand how to make API calls and test applications in provided sandbox environments. This approach lowers barriers to entry for startups, enabling them to offer crypto features without overhauling existing systems or hiring specialized blockchain engineers.
Quidax, Yellow Card, and Busha charge integration or usage fees based on the crypto solutions utilized, customer numbers, and transaction volumes.
Liquidity Solutions
Liquidity is crucial for startups building digital asset exchanges. Without sufficient liquidity, transaction speeds can lag, leading to user frustration. Quidax, Yellow Card, and Busha all provide liquidity as part of their API offerings, with Quidax claiming to have an “unlimited” liquidity pool to support businesses.
Regulatory Considerations
The regulatory landscape in Nigeria is gradually evolving. The Securities and Exchange Commission (SEC) launched the Accelerated Regulatory Incubation Programme (ARIP) in June 2024, allowing some crypto startups to apply for licenses. Quidax and Busha received provisional licenses, enhancing their credibility and enabling them to market their API offerings more effectively.
“For businesses, the provisional crypto license provides comfort in engaging with crypto-forward payment solutions,” a Busha spokesperson noted.
The Mutual Benefits of B2B Relationships
The relationship between crypto API providers and their business clients is mutually beneficial. B2B clients offer more stable revenue compared to retail traders, whose transaction volumes can fluctuate. Once onboarded, businesses pay consistent service fees, making B2B a more predictable income stream.
Despite the growing emphasis on B2B services, these companies remain committed to serving individual users. As more fintechs look to embed crypto functionalities—like wallets and trading—API providers are well-positioned to meet this demand, often finding it more efficient to utilize existing infrastructure rather than build from scratch.
Source: africa.businessinsider.com
