Nigerian fintech startups could spend over $1 million on KYC address verification
- Fintech startups in Nigeria must physically verify the addresses of POS agents and all other customers as part of new KYC processes.
- The cost of verifying POS agents could be expensive, with startups potentially paying up to ₦1000 ($0.40) per agent.
- The total cost of verifying 1.5 million POS agents in the fintech industry could reach ₦1.5 billion ($1 million).
The new requirement for fintech startups to physically verify addresses of POS agents and customers will impose significant costs on the industry. While the verification process aims to increase transparency and reduce fraud, the financial burden may hinder the growth of these startups and delay efforts to increase financial inclusion. However, it is important to combat fraud and ensure visibility over crypto transactions.
