By seamlessly handling crypto transactions across Africa, Yellow Card customers are offered a diverse range of trading options and payment alternatives.
Over the past decade, African fintechs have dedicated enormous effort and ingenuity to facilitate cross-border financial transactions.
However, there are more than 40 different African currencies that complicate intra-continental trade. Fintechs, even those with quality APIs, have not been able to effectively overrule the challenges posed by the lack of a common currency.
African currencies are strictly controlled by their indigenous countries’ financial institutions and regulatory bodies. The convenience and speed of a transaction depends on a country’s willingness to integrate technology and ascribe trust to new financial players in the market.
Monetary inhibitions have opened up the way for cryptocurrencies – which are not controlled by governments or centralized financial bodies. Their decentralized nature positions them as a viable option in achieving fast and undelayed financial transactions. Crypto transactions are also secure, transparent, cheaper, and easily accessible to anyone with a mobile device and internet.
At the center of cryptocurrency transactions lies stablecoins. These are cryptocurrencies that peg their value on an external asset such as a fiat currency or gold to maintain a stable price. They are less volatile than popular Cryptos like Bitcoin and thus make them ideal for financial transactions. They include USDT, USDC (pegged on the dollar) and EURS that is pegged on the Euro.
To enable traders to leverage on the transactional value of stablecoins, various companies are providing a platform for buying and selling them. Yellow Card, for instance, provides all its customers across Africa with secure, liquid, and cost-effective access to stablecoins like USDT, USDC, and PYUSD. The company also provides other popular digital assets like Bitcoin and Ethereum directly via local currency payments.
Yellow Card was founded in 2016 by Chris Maurice – the company’s Chief Executive Officer (CEO) and Justin Poiroux – the Chief Technology Officer (CTO). It serves about 20 countries in Africa including Kenya, Rwanda, Tanzania, Uganda, Nigeria, Benin, Ghana, Côte D’Ivoire, Burkina Faso, Mali, Senegal, Togo, Republic of Congo, DRC, Gabon, Cameroon, South Africa, Zambia, Malawi, and Botswana.
Yellow Card has integrated its trading app with local payment solutions from different countries to accommodate a variety of customers. These include local bank transfers, mobile money services, and cash agents.
Safety and security is guaranteed for customers. The stablecoin on/off ramp is licensed by the Crypto asset service provider (CASP) licenses in South Africa and Botswana. It is also registered by CASP in the EU (Poland), with AML/CFT registrations in the United States, EU (Poland), Botswana, Ghana, Nigeria, South Africa, Tanzania, Uganda, and Zambia. Data collector agencies in Botswana, Ghana, Kenya, Nigeria, South Africa, and Uganda have also registered the platform.
The speed of a financial transaction is not all that matters to a trader. If it becomes too expensive to facilitate a transaction, problems arise. The goal of any businessman is to minimize costs.
Ordinarily, bank-to-bank transactions are costly even among countries within the same regional bloc. For instance, sending money between Tanzania and her East African neighbors incurs more than 30% in transactional costs – according to the International Monetary Fund (IMF).
To leverage this platform, all you need to do is to log into your Yellow Card account, click on “Coins” at the bottom of your screen and select your stablecoin of choice. Then click on the “Send” option on your dashboard and indicate the amount you wish to send.
You can then choose your sending method, for instance, the USDT wallet address. After confirming it’s the right address, select the ‘network’ through which you wish to send your stablecoin and paste the correct wallet address. It is not only less costly to transfer stablecoins via the platform, but the process is also simplified and can be done at any time of the day.
The stablecoins leader intends to entrench itself in the growing cryptocurrency market across Africa. According to Chainalysis, Africa’s cryptocurrency adoption surged by 1200% by October 2021. The demand for stablecoins rises as cryptocurrency becomes a popular wagon in the continental financial space.
Yellow Coin’s presence in various markets gives it an edge over other platforms. By supporting local currencies and modes of payment and offering a diverse range of coins, accessibility is assured.
Yellow Card’s experience in the African market has toughened up its ability to navigate the continent’s financial difficulties. The company’s solutions are tailored with a keen mind on the African needs. Yellow Card is able to offer competitive rates and tap into unique preferences because it has taken time to learn and interact with the continental market.
The company’s dedication in enabling the transaction process for stablecoins in Africa has garnered interest from investors. In its latest Series C round, the company raised US$33 million led by Blockchain Capital. The funds will be channeled towards enhancing Yellow Card’s expansion across the continent, unveiling new products, and strengthening its stablecoin system.
Yellow Card’s mission is to platform itself as an icon for financial freedom. By seamlessly handling crypto transactions across Africa, customers are offered a diverse range of trading options and payment alternatives.
