Businesses in Nigeria that accept Bitcoin are still seeing customers rely primarily on cash highlighting the gap between cryptocurrency acceptance and its use as an everyday means of payment according to a report by a local outlet.
According to Iwu*, a young businessman in Lagos, Nigeria:
“People with Bitcoin wallets, they come, they will show me their crypto wallets and still pay me in cash or by bank transfer.
A few of them still pay in crypto, but many of them would rather pay with cash instead of transferring crypto.”
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The experience reflects a broader challenge for Bitcoin as a payments tool as merchants can make the cryptocurrency available without customers necessarily choosing it at checkout. Bitcoin payment use remains difficult to measure because transactions can involve
payment processors,
crypto cards, and
instant conversion into local currencies.
For merchants, accepting Bitcoin can therefore amount to adding another payment option rather than replacing existing ones. Bitcoin’s payment infrastructure allows businesses to receive BTC directly or use processors that convert the cryptocurrency into local currency, reducing their exposure to price volatility.
“Of all the customers who buy from me, about 30 per cent of them pay in crypto.
Most of them come out of curiosity because of the Bitcoin sign I put up that I accept crypto. They make enquiries.
Some of them end up buying and paying with crypto,” said Iwu.
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The distinction is important for cryptocurrency adoption. Acceptance by merchants establishes the possibility of spending Bitcoin, but actual usage depends on whether consumers have a reason to choose it over cash, mobile money, cards or other established payment methods.
“Bitcoin is a digital asset, and no company owns it.
Therefore, Bitcoin can’t run advertisements for itself. But we that accept it, we are the ones that will do the publicity for it. Many businesses around this area accept crypto payments, but they don’t want to put a signboard outside their shops and offices like me. They treat it as a need-to-know and only if the customer asks to pay Bitcoin.
Crypto payment won’t grow like that,” said Iwu.
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Iwu says for adoption to take place, regulated digital asset companies in Nigeria need to start running advertisements similar to regulated entities like Opay, MoniePoint, and other payments fintechs.
“Everybody knows what is Bitcoin. They just don’t know how to use it, whether they can use it or if it is safe. We need to educate them, and that is the only way we can make them come around.
When it starts growing, peer pressure will push other people to follow,” said Iwu.
* Names have been changed for privacy reasons.
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This post is adapted from this original post.