Imagine you need to sort payments in a few hours, but your bank delays for days (sometimes weeks), making you lose a vital business deal. That’s the reality of using a traditional bank for international transactions. There’s also the unending documentation and high processing fees for every international deal.
For instance, the cost of sending money to Nigeria from the diaspora increased for the 15th consecutive year in 2023, as the average fee for sending $200 to Nigeria grew by 7.9%. The expensive bank charges partly explain why Nigerians are turning to cryptocurrencies for payments. Nigeria ranked second for global crypto adoption in 2023, with peer-to-peer platforms the most used outlet for crypto trading in Nigeria.
You may ask: “What does crypto payment do differently for businesses?” In this piece, I’ll answer the rhetorical question and other unspoken inquiries about using crypto as a payment option for businesses in Nigeria.
Before reading the full story, here are the takeaways to note:
- Cryptocurrency is a virtual currency you can’t hold like physical cash but can spend like everyday local currency.
- Cryptocurrency provides seamless cross-border transactions, swift transfers of high-volume deals, and cheap processing fees.
- Crane—the crypto-powered platform for converting crypto to local currency—provides the following benefits to businesses:
- improves their profit margins
- expanding to a new market
- avenue for savings and investment
The first huddle: What are cryptocurrencies?
It’s understandable if “cryptocurrency” or “crypto” startles you. Before Satoshi Nakamoto (not their real name) created the technology that birthed Bitcoin—the most traded crypto—in 2008, digital currencies were largely anonymous. Cryptocurrencies are digital money. You can’t hold them like physical cash but can spend them like everyday fiat currencies.
Unlike the traditional banking system that regulates physical cash, crypto is built on blockchain technology. Operationally, blockchain is synonymous with Google Docs, where anyone with a doc link can view its content, but nobody (including the “author” of the document) owns it.
Technically, every transaction (including data and records) is stored on interconnected blocks (hence the name BLOCKchain). On Google Docs, only authorised users (or “editors”) can make changes and all alterations are visible to other users. Similarly, only sanctioned parties (or miners) can validate transactions on the blockchain. Anyone can mine cryptocurrencies, but only individuals with access to advanced computing systems like application-specific integrated circuits (ASICs) can work as miners.
Unlike traditional financial institutions, no one owns the blockchain. It’s a “one for all” technology with advanced security controls to checkmate excesses. Its decentralised principles are responsible for its growth and transaction speed, helping users conduct transactions with little or no friction.
For instance, the transaction fee for sending $200 to a sub-Saharan country was as high as 40% in 2023. In contrast, on average, crypto remittance charges 1% as the transaction fee. What’s more? It’s free to receive the crypto equivalent value of $200 on Crane—a crypto-powered fintech platform for converting cryptocurrency to local currencies.
Check out the table below to understand the main differences between cryptocurrency and the traditional finance industry.
Crypto payment or traditional banks: which option is better for my business?
Many factors influence the payment channel you should use for your business. The “hands-off” approach, in which you use a service provider to convert digital assets to fiat (local currency), is a popular use case for businesses. If that’s your choice, here are the benefits:
1. It removes the barrier to international payment
Ask business owners, especially freelancers in Nigeria, and they’d almost unanimously agree that international payment is a constraint. For instance, Gbenga Adebiyi (a seasoned freelancer) lamented the cross-border payment limitations that affected his freelance business while living in Nigeria.
Here’s an excerpt of his story: “Back then working for a company based in Texas, USA, getting paid was an issue, so they decided to explore Western Union [an international payment company]. I got paid, but it took 48 hours before I could access the funds. However, after my employees made subsequent payments, Western Union refused to process further payments because they deemed my account suspicious.”
Gbenga’s case happened in 2015. But not much has changed in almost a decade. Last year, it took me months to resolve payment for a freelance gig from a UK-based client because of bank compliance issues. These stories suggest that the international remittance barrier is an unintended consequence of decades-old rigid banking policies.
Crypto, however, makes it easy to send and receive money anywhere. For example, Crane lets you collect payments in crypto from anywhere and convert them to your local currency.
The lack of payment constraints that crypto offers helps you increase the tentacles of your business. It means you can sell your product to anyone, anywhere, and your compensation won’t suffer.
2. Speedy transaction
Intra-bank transactions in Nigeria are relatively fast and charge-free. But there’s a high chance you’ll deal with clients who use different financial institutions. In this sense, the speed and reliability of transactions are unreliable. While transaction speed on the blockchain isn’t always near-instant, it usually takes minutes.
Here’s a table showing the estimated time of selected cryptocurrency transactions.
| Cryptocurrency/network | Estimated transaction time (in minutes) |
| Bitcoin | 40 |
| Ethereum (Ethereum Network) | 14 |
| Ethereum (Arbitrum Nova Network) | 25 |
| Ethereum (Optimism Network) | 90 |
| Tether | Near-instant |
3. It’s easy to send and receive huge amounts of money
Bank accounts have withdrawal, deposit, and transfer limits. For instance, individuals and corporations can only withdraw #500,000 and #5 million per week respectively. In “compelling circumstances,” you can go above the withdrawal limits, but processing fees (3% for individuals and 5% for corporate institutions) apply and you must provide the following documents:
- A valid form of ID of the payee
- The Bank Verification Number (BVN) of the payee
- Tax Identification Number (TIN) of both payee and payer
- Written approval by the MD/CEO of the financial institution authorising the withdrawal.
What did you notice with the process?
I explained the procedure to show how time-consuming it is for a Nigerian business owner to withdraw #10 million and above. Traditional banks tout security and accountability as the reasons for their restrictive policies; however, the processes are almost always not business-friendly.
In contrast, crypto transactions don’t require redundant documents, regardless of the volume. In this sense, the blockchain is more business-friendly, especially for high-value, cross-border transactions.
While I can’t dictate the fitting payment channel for your business, you should use traditional banks if you tick the boxes below:
- Transaction speed isn’t a deal breaker for your business efficiency.
- Your business partner (s) use (s) the same financial institution (s) as you in the same country.
- You prefer to trade strictly in physical cash.
Crypto payment: How to use Crane to scale your business in Nigeria
Crypto is easy to use, but you must choose the platform that fits your business needs. Crane, a crypto-powered financial company, is suitable for receiving cryptocurrencies and converting them to local currency. The benefits of using Crane include:
1. Improves profit margin
The less money you spend on expenses, including payment transfers, the more you’ll increase the profit margin of your business. On Crane, incoming crypto transactions are free, and you’ll only pay a paltry #30 sum to transfer money from Crane to your bank account.
2. Access to a wider customer base and new clients
Crypto adoption is growing in Nigeria and globally. In 2023, Nigeria had the third-highest year-on-year crypto transaction volume—one of only six countries to do it. Likewise, over 8 in 10 Fortune 500 executives said their companies plan to invest in cryptocurrency or the blockchain in 2023. Even traditional fintech companies like PayPal accept crypto for payments, another indication of crypto’s growing adoption.
How does crypto growth affect you? Crypto’s widespread adoption opens your business to a new audience. More clients outside your immediate region can patronise your services and pay in minutes without hiccups. This is why over 8 in 10 businesses with an annual income of $1 billion said they adopted crypto payments to find and gain new customers in 2022. The cross-border democratisation crypto brings is a no-brainer for improving revenue and expanding your business reach.
3. It’s beginner-friendly
Whether you’re a crypto veteran or an enthusiast, the Crane platform is built for everyone. You don’t need to own any cryptocurrency to receive money on Crane. Additionally, you can convert your digital assets to physical cash.
4. Savings and investment options
Digital assets, on average, are more valuable than physical currencies (aka fiat). For instance, in March 2024, 1 BTC exceeded $73,000, while Ethereum (ETH) was worth $2,988.17.
Crypto prices indeed fluctuate, making every potential investment high-risk. Digital assets, however, are valuable and provide alternative investment and saving options for businesses.
If you’re open to crypto investment, Warren Buffet’s financial counsel in 2008 is a worthy rule: “Be fearful when others are greedy, and be greedy when others are fearful.” By interpretation, prioritise value in every investment you make. N.B: This isn’t financial advice. You’re solely responsible for your investment choices.
FAQs about crypto payment in Nigeria
Is crypto payment banned in Nigeria?
Crypto is legal in Nigeria as of the time of this writing. In December 2023, the CBN removed the two-year restriction on crypto transactions. Instead, CBN released strict customer identification and documentation (or KYC) and anti-money laundering checks for transparency.
How can I open an account on Crane?
It takes less than five minutes to open an account on Crane. Follow the instructions below to get started with us.
- Download the Crane app from the Google Play Store or App Store
- Select the sign-up option.
- Choose your country.
- Fill your details (first name, last name, email address, and password) on the Sign Up screen. For security, ensure you choose a unique password with at least 8 characters, an upper case, a lower case, a digit, and a special character.
- Enter the OTP sent to your registered email address. That’s it!
Can I send crypto on Crane?
You can only receive crypto on Crane. Afterwards, you can convert it to your local currency.