Africa’s headquartered Yellow Card, offering cryptocurrency services, has secured $33 million in a Series C round to propel operations and expansion all over the African continent. Blockchain Capital was joined by Polychain Capital, Third Prime Ventures, Castle Island Ventures, Block Inc., Galaxy Ventures, Blockchain Coinvestors, Hutt Capital, and Winklevoss Capital. The new funding takes its cumulative raise so far to $88 million: $15 million from Series A in 2021 and $40 million from Series B in 2023.
The new fund will be invested in progressing the firm’s API and widget offerings, allowing firms like Coinbase and Block to plug into African markets. Further, the fintech will leverage future growth opportunities and adopt an increased Pan-African market in payment gateways and treasury via stablecoins such as USDT, USDC, and PYUSD. It is also to establish Yellow Card as a strong player in the product-technology, team, and regulation portfolios within Africa.
In 2024, Yellow Card tied up with global cryptocurrency exchange Coinbase to enable residents in 20 African countries to buy and trade using the digital currency USDC and other virtual coins through local currency. The consolidation helps in local settlement through bank-based transfers and mobile money to give customers an efficient experience with little or no complicated knowledge-of-your-customer processes.
Launched in 2019 in Nigeria, Yellow Card has grown into one of Africa’s leading cryptocurrency platforms that has overseen more than $3bn in deals across 20 countries. This includes the first licensed stablecoin on- and off-ramp within the region through the Payments API for the facilitation of business transactions.
In particular, in 2022 Yellow Card made history as the first cryptocurrency firm in Africa to obtain a Virtual Asset Service Provider (VASP) license in Botswana. In 2023, it struck a similar deal with the American financial and software services company Block—the Cash App and Square’s parent company—to process cross-border transactions in 16 African countries, including Nigeria, Ghana, and South Africa.
Based on the overall market experience of Yellow Card as it moves up, there is a tough market awaiting the money transfer service. Some of the key market players in the sector, such as Paxful, a U.S.-based cryptocurrency exchange with a particularly significant focus on Africa, have ceased activities, while Mara, its direct competitor, has remained and renamed to Jara mainly due to financial issues. As for the African regulators, some of them, such as the South African or Nigerian ones, are set on regulating the crypto sector, which means adding a layer of complications towards the industry’s prospects for development.
Because of the focus on scale, regulation, and product development, Yellow Card intends to be the most reliable platform for the buying and selling of stablecoins in Africa. Transactions through bank transfers and mobile money enhance the customer experience with simplified KYC procedures.
Founded in 2019 in Nigeria, Yellow Card has become a pioneer in Africa’s cryptocurrency ecosystem, facilitating over $3 billion in transactions across 20 countries. It boasts the first licensed stablecoin on- and off-ramp in the region, allowing businesses to transact seamlessly using its Payments API.
In 2022, Yellow Card became the first cryptocurrency firm in Africa to receive a Virtual Asset Service Provider (VASP) licence in Botswana, marking a key regulatory milestone. In 2023, it partnered with U.S. fintech company Block, the parent company of Cash App and Square, to enable cross-border payments across 16 African nations, including Nigeria, Ghana, and South Africa.
While Yellow Card continues its upward trajectory, it faces a challenging market. Major players like Paxful, a U.S.-based crypto exchange with a strong African presence, have shut down operations, and fellow competitor Mara has rebranded as Jara following financial setbacks. Meanwhile, African regulators in countries like South Africa and Nigeria are moving towards formalising the crypto sector, adding a layer of complexity to the industry’s growth potential.
With its focus on scaling, regulatory compliance, and product innovation, Yellow Card aims to stay ahead of the curve as the go-to platform for stablecoin transactions in Africa.
