The ability to buy cryptocurrency and hold it yourself is becoming increasingly accessible in Nigeria. This is because major crypto wallet MetaMask is expanding its direct integration with local banks.
New collaboration started
On March 21, MetaMask’s parent company, ConsenSys, announced a new integration with crypto fintech MoonPay, allowing users in Nigeria to buy crypto through direct bank transfers.
Available within the MetaMask mobile app and Portfolio DApp, this new feature greatly simplifies the process of purchasing cryptocurrency for users in Nigeria without the need for credit or debit cards.
Before the partnership, MetaMask users in Nigeria already had access to the MetaMask wallet, but the process of buying crypto was costly and time-consuming, MetaMask product manager Lorenzo Santos said:
While Moonpay had a card integration feature, about 90% of attempts to buy crypto using a credit or debit card were declined.
Thanks to the new integration that supports local bank transfers, crypto purchases on MetaMask can now be made faster and cheaper. This means users can access crypto without having to send assets to a centralized exchange.
Reducing Refusal Rate in Nigeria
According to Zeeshan Feroz, Chief Product and Strategy Officer at MoonPay, the new integration is expected to reduce the rejection rate of direct crypto purchases in Nigeria from 90% to 30%. He noted that customers from all banks in Nigeria would be able to access the service through wire transfers, which are a common method of payment among Nigerian e-commerce companies.
While there are currently problems with crypto ramps in Nigeria, the country has proven to be an important market for MetaMask, ranking third in mobile monthly active users, Santos said. She added: “It is also among the top ten countries in terms of visitors to metamask.io in the past month.”
Top 20 in terms of crypto adoption
According to the Chainalysis 2022 Global Crypto Adoption Index, Nigeria is among the top 20 countries in the world in terms of cryptocurrency adoption. There are reports suggesting that by 2022, 35% of the Nigerian population between the ages of 18 and 60 will own or trade crypto, despite the fact that the Central Bank of Nigeria banned banks from facilitating crypto exchanges in February 2021.
Finally, in December 2022, local media reported that the Nigerian government is planning to pass a law recognizing the use of Bitcoin and other cryptocurrencies in order to keep up with “global practices.”