Bridging the Gap for Africa’s Small Businesses with a Blockchain-Powered Marketplace
How EasyShare.Global Employs Blockchain to Promote Financial Inclusion
From the bustling streets of Lagos to the vibrant markets of Nairobi, MSMEs (Micro and Small Medium Enterprises) are the very backbone of Africa’s economy. As these enterprises increasingly turn to online sales, these small yet bustling enterprises recognize the value of crypto assets and blockchain. However, high transaction fees, trust issues, and complex platforms create obstacles.
Africa recorded $105.6 billion in crypto transactions between July 2020 and June 2021. Though it might have the smallest crypto economy globally, Africa’s crypto markets grew faster than any other region in 2022. Two major factors are driving this momentum:
- Remittances: Traditional remittance systems to Africa come with high and hidden transaction fees. Crypto assets offer cheaper and faster alternatives. Consequently, Africa leads in retail-sized crypto transfers, with Nigeria’s remittance market projected to reach $26 billion by 2025.
- Micro and Small Medium Enterprises (MSMEs): African micro-businesses are adopting blockchain payments, reducing transaction costs and accessing previously unreachable markets. In places like Nigeria and South Africa, where strict capital controls are in place, crypto has become essential for everyday cross border transactions. Yet, despite this growth, the continent’s MSMEs, the heartbeat of Africa’s economy, still grapple with unlocking crypto’s potential.
Digital Shift: Retail Transactions Driving Crypto in Africa
Sub-Saharan Africa’s crypto market thrives on small retail transactions. An impressive 6.4% of its transaction volume stems from transfers under $10,000. Furthermore, 95% of all transfers are retail-based, with 80% under $1,000. P2P exchanges have been the driving force behind these retail transactions. However, this prominence in P2P exchanges has not yielded seamless crypto operations.
The pandemic’s push towards digital platforms saw in-person sales drop, prompting many businesses to transition to online platforms. Most businesses, to survive, ventured into social media, and those who could afford it opened online stores. Additionally, they now grapple with payment challenges due to decreased in-person sales.
The glaring absence of an ‘eBay’ equivalent, primarily due to PayPal and other international payment restrictions on Africa combined with the unpredictable nature of existing online marketplaces, intensifies these problems.
Platforms like Facebook marketplace and Instagram have many MSME’s/merchants selling various products and services online. However, these marketplaces are infamous for fraud. Some examples of fraud on these platforms include merchants not delivering promised/advertised products; and end users not receiving purchased products. This is worsened by the absence of robust security measures, escrow services and dispute resolution systems to detect and tackle the widespread fraud.
Micro-Business P2P/ Marketplace Payment Challenges
The absence of secure payment solutions, escrow accounts, and effective dispute systems, particularly in major markets like Nigeria has left a void:
- High Fees: Ambiguous fee structures and hidden costs deter trust and adoption.
- Complex Interfaces: Traditional crypto exchanges are intricate and not user-friendly, posing significant challenges to adopt it as a use case for micro-businesses.
MSMEs have been searching for a dependable solution that brings reliability, transparency and protection against fraud. Yet, there isn’t a reliable solution to tackle these challenges.
Enter EasyShare.Global, a perfect fit for African MSMEs. EasyShare.Global is a P2P escrow payment system based on blockchain. It’s intuitive, affordable, and secure.
Here’s how it works:
- Smart Contract Initiation: Buyers and sellers finalize product details and price. The buyer transfers funds to an EasyShare smart contract, which securely holds the funds in escrow.
- Product Delivery: The seller sends the product. Funds remain in the escrow smart contract.
- Finalization: The buyer, upon receiving and verifying the product, approves the transaction, prompting the smart contract to release the funds in escrow to the seller. The buyer is given an opportunity to rate the seller and comment on the transaction. This rating builds a seller’s reputation on the platform.
Each MSME can set up an online storefront on EasyShare.Global, allowing them to issue invoices, showcase their products and process crypto payments. The escrow feature retains the funds until product delivery and confirmation by the buyer, protecting both parties.
Technologically, EasyShare.Global’s blockchain foundation ensures smooth and decentralized transactions. Each transaction is processed seamlessly with the blockchain backbone enhancing security and ensuring a transparent trail for each trade.
A notable upcoming feature of the platform is the integration of a utility token system reflecting the reputations of both sellers and buyers. This system rewards good practices: if you maintain honest transactions, your reputation grows. However, if you continually deceive customers, your token gets liquidated/burnt, directly affecting your standing.
Understanding the tight margins on which micro-businesses operate, EasyShare.Global minimizes transaction costs, supporting profitability and championing financial inclusion.
EasyShare.Global is transforming the prospects of countless African micro-businesses like the one of Chigozie, our pilot merchant on the platform who owns a fashion business. Chigozie says the invoicing and escrow system has made more customers trust him and thus has increased his sales dramatically. He’s had to get more hands to assist him in processing and delivering order.s . Visualize the growth if transaction trust and financial barriers such as were for Chigozie were eliminated. With a vast percentage of African businesses keen on harnessing crypto, addressing these barriers could unlock unprecedented growth. Beyond mere numbers and as seen above, this means job creation, community upliftment, and a boost to the continent’s GDP.
But EasyShare.Global isn’t stopping at facilitating P2P transactions. The platform is also looking into decentralized finance, bills payment among other features aiming to redefine financial inclusivity and bolster the African MSME sector.
The macro implications? Enhanced financial inclusion, robust economic growth, and a hotbed for financial innovation. Africa’s financial landscape stands on the brink of a revolution, with EasyShare.Global right at its heart.
EasyShare.Global is not just a platform; it’s a transformative force in Africa’s financial ecosystem. It signals a shift in Africa’s financial paradigm, offering solutions to immediate challenges that underpin growth and empowerment, showcasing crypto’s transformative role in Africa. So, whether you’re a business owner or a crypto enthusiast, now’s the time. Dive into EasyShare.Global now and become part of this community, or simply educate yourself on its potential.
