As cryptocurrency adoption continues to grow in Nigeria, a new wave of founders is developing hybrid finance apps to make crypto more accessible and user-friendly.
These apps bridge the gap between traditional banking and decentralized finance (DeFi), allowing users to engage with cryptocurrency just as easily as they manage fiat currencies on regular banking platforms.
Unlike conventional crypto trading platforms that often require a steep learning curve, hybrid finance apps simplify processes such as buying, selling, and converting cryptocurrencies directly to naira, without the need for peer-to-peer (P2P) interactions or escrow services.
Since mid-2023, several startups—including Taja, Palremit, Prestmit, Azasend, and Pandar—have emerged to drive this innovative model. Today, at least 20 hybrid finance platforms are operational in Nigeria, seeking to bring more people into the crypto ecosystem with minimal friction. “I’ve used Bybit when I had small amounts of Dogecoin and Bitcoin, but I find the app overwhelming. I prefer buying Solana or Bitcoin on simpler hybrid finance apps and sending them to my Phantom wallet for other trades,” says David Ayankoso, an occasional crypto user based in Lagos.
Nigeria ranks among the global leaders in crypto adoption, but despite high transaction volumes, crypto remains largely in the hands of a knowledgeable minority. Unlike fiat currencies, digital assets require precision—mistakes can lead to permanent loss of funds, and interacting with P2P markets can expose users to fraud.
Recognizing this, hybrid finance apps offer a safer alternative. Instead of navigating complex P2P markets, users can create an account, fund it using a virtual naira account (powered by partnerships with payment processors), and purchase crypto seamlessly within the app.
“Founders of these apps are tapping into a grassroots opportunity,” says Ayo Adewuyi, Head of Product at Prestmit, which boasts over 700,000 users, thanks to add-ons like gift card trading that attract users across borders. “People wanted a Nigerian solution for crypto, and brands like Patricia demonstrated the demand. Now, more startups are following suit.”
The surge in hybrid finance platforms has also been fueled by regulatory constraints on P2P trading and increased scrutiny of large crypto exchanges operating in Nigeria. As major exchanges scaled back their local presence, hybrid apps filled the void—offering simpler, localized solutions to meet demand.
Beyond buying crypto for investment, these apps enable everyday use cases—such as paying bills, buying airtime, trading gift cards, sending crypto via app tags, and making online payments. They’re particularly valuable for freelancers earning in crypto, who can convert earnings to naira without depending on risky P2P routes.
Unlike complex crypto exchanges, the hybrid model involves three essential components; a proprietary platform (mobile/web app), virtual naira accounts for users and crypto liquidity provision.
In essence, these apps act as intermediaries—sourcing liquidity from crypto infrastructure providers or over-the-counter (OTC) traders, rather than generating it themselves. “Liquidity isn’t conjured out of thin air. Often, the same P2P players serve as liquidity providers but undergo stricter KYC to ensure legitimacy of funds,” Adewuyi explains.
However, external liquidity dependence means users may face minimum transaction limits, which can be a challenge for micro-transactions. For example, Luno—a similar hybrid platform—requires a minimum of 0.000025 BTC (about $2.03) to sell Bitcoin, preventing smaller trades. Other platforms may set even higher minimums.
While hybrid finance apps offer convenience and security, they charge higher transaction fees than P2P platforms. They typically generate revenue from deposit fees and markup on exchange rates when buying/selling crypto.
This is unlike P2P markets, where direct competition among traders tends to lower transaction costs. “Not everyone wants the complex side of crypto. Hybrid apps step in, offer liquidity at a rate, and if users are okay with it, the deal goes through,” Adewuyi adds.
Though they bear some resemblance to crypto exchanges, most hybrid finance apps operate closer to fintech companies, focusing on naira-based user experiences rather than the trading-heavy features of a typical crypto exchange.
The fusion of TradFi (Traditional Finance) and DeFi (Decentralized Finance) in hybrid apps is part of a broader trend, with platforms like Eversend (Uganda) and Grey (Nigeria) also integrating stablecoin payments to appeal to Web3 freelancers and international users.
Hybrid finance apps reflect a growing realization among founders that crypto’s future lies in everyday utility—moving beyond speculative trading to real-world financial use cases. These platforms aim to bring those who feel left out of the crypto boom into the fold—without exposing them to its usual risks and complexity.
