Start-ups, especially in Nigeria are faced with a lot of uncertainties which present opportunities as well as threats. In order to thrive and dominate their market space, they need to come up with quality and well informed strategies.
As part of a select group of fellows in the Innovate for Africa program, I have been working on developing my strategic thinking skill and understanding of how start-ups operate and how to help them grow and succeed.
This Focal point of this article is to give an insight into the Strategic analysis of Vesicash Nigeria Limited.
Organsational Background
Vesicash is a digital Escrow service provider that ensures safe and secure digital eCommerce transactions such as peer-peer and marketplace. It provides payment security to businesses by releasing the payment after the confirmation from individual. It also provides a two factor authentication and offers solution to marketplace, eCommerce, banks and more.
Vesicash was founded by Ibraheem B. Oladele, Tomisin Adeshiyan and Aigiomawu Ehiagbe in 2018 and since then has raised a seed funding of $100,000 in 2018 and a larger undisclosed funding on February 21, 2020. With a mission to empower Nigerians through a secure, safe and transparent way of carrying out digital transactions without fear of being defrauded, it has witnessed a significant volume of transactions processed come from the service sector. It currently has operations only in Nigeria, but has plans to secure a strategic partnership to offer its payment security solutions to other countries within West Africa and Africa as a whole.
The Payment Security Problem Solved.
With the emergence of e-commerce, there has been an increased case security and risk related issues associated with it. Also disruptions in payment from buyers who feel dissatisfied with products delivered to them. Also, most eCommerce and digital payments provide a wide range of solutions aimed at increasing payment and remittances services without focusing on the security aspect. The trust issue remains a serious issue.
According to Oladele, CEO and Co-Founder of Vesicash, “Vesicash serves as the trust component that ensures that the parties involved in a transaction can do so with the knowledge that their interest are protected and that the other party will hold up their end of of the deal, allowing transactions to be carried out confidently and with peace of mind”. Its patented escrow infrastructure catalyses the digital economy in emerging markets by creating the requisite environment for safe safe and accountable eCommerce, providing payment security solutions for Logistics providers, Digital eCommerce and the marketplace.
Vesicash Payment System
Africa constitutes the next frontier for eCommerce. This is evident in its vast and varied massively populated continent. It has continued to witness increased number in its middle class and those with access to disposable income who continue to engage in eCommerce even though payment and its security problems remain a challenge.
Vesicash employed an escrow payment system in its operations. This provides security and guarantee on online payments for all parties involved. Escrow transactions are financial arrangements where a trusted third party holds and regulates payment of the funds required for two or more parties involved in that transaction. It ensures that the transaction is carried out according to the agreed terms and conditions. It ensures transactions with verified people.
This becomes handy when dealing with a large amount of money and certain obligations must be fulfilled before payment is released.
Strengths and Weakness
A quick analysis of the strenghts and weaknes of Vesicash revealed the following:
A majorstrength of Vesicash system lies in its Two-step verification where it tries to ensure transactions with verified people, its provision of Buyer and Seller protection as well as complete transparency which are very crucial for effective digital transactions.
However, a major weakness was lack of adequate identity documentation database. This limits its resolve to ensure transactions with verified people.
Having verified possible problems, it is important to develop strategies and formulae to reduce or eliminate these problems. In order to tackle or eliminate or reduce this problem, it could work with National identity management commissions of the countries it operates in, Bank in such countries and even regulatory authorities so as to foster swift and safer payment system with verified people.
I have come up with hypothetical objectives and strategic approaches to help tackle this problem.