Following the government ban, several Fintech companies were badly crippled. They lost customers who used their platforms to trade crypto currency. These platforms bounced back by adding a new feature known as peer-to-peer transactions.
This new feature enables users to trade coins directly with one another. And if for any reason one gets swindled they would not have the company to blame for it. Good for the company, but how about the customers?
This is where Yellow Card’s new feature changes the tide and saves the day. But before then, let’s clear the air and look at key terms.
What are Fintech companies?
Financial technology, also known as FinTech, is an industry which comprises different companies that use advanced technology to make financial transactions effective and efficient.
A closer look- Fintech is simply a technical tool that supports financial services and makes the delivery of such services easier.
FinTech companies hence, are businesses that provide financial services to the public using software.
These companies are not limited by factors like legacy operating systems. It’s a flexible version of the traditional banking system, so to speak.
What is Yellow Card?
Yellow Card is an American African-focused Fintech company that allows Nigerians to buy crypto currency on the Tron network in Nigeria directly with Naira.
It is established in over 13 African countries. The focus of Yellow Card is Africa. It is one among many that sees Africa as a fertile market for crypto trading.
Peer-to-peer on Yellow Card
Peer-to-peer refers to the exchange or sharing of information, data, or assets between parties without the involvement of a central authority.
Peer-to-peer became notably important in Nigeria after the government ban on crypto in 2021. It is infact a necessary evil.
Yellow card has modified the peer-to-peer feature on their system. They have made it void of risks by doing the peering themselves.
Hence, they link up verified traders, eliminating the possibility of being swindled.
KYC Verification on Yellow Card
Yellow Card also adopted a Know Your Customers (KYC) procedure. Generally, KYC is a system put in place by a financial institution to protect its image from any illegal activity.
KYC procedures at Yellow Card follow three tiers:
Tier 1 verification
- Verification of Identity: this includes; government-issued ID, BVN or NIN.
- With Tier 1 verification, you have a daily trading limit of NGN 50,000.
Tier 2 Verification
- Submission of valid address.
- Tier 2 verification increases your daily trading limit to NGN 2 million.
Tier 3 Verification
- Proof of income
- Tier 3 verification increases the daily trading limit to NGN 50 million with an unlimited monthly trading limit.
In addition, all customers are required to provide their email before they can sign in to a Yellow Card account.
Yellow Card has resurfaced in the nick of time. At this point where the quest for crypto currency is on the high side, they would pull the right crowd.
Block chain technology is rapidly gaining approval in Africa, especially in Nigeria. And as such, Fintech companies would soar high too, provided they meet up with the growing standard.