Nigerian fintech startup Vella Finance is making a strategic pivot by discontinuing its cryptocurrency services and reorienting its focus toward providing essential banking services for small and medium-sized enterprises (SMEs). This shift comes as a response to regulatory considerations and a calculated business decision.

In a statement seen by NODO on Monday, October 23, Tolu Adedayo, the co-founder and chief operating officer of Vella, clarified the company's intentions. "It is simply a business decision. We are going fully into SME banking. Banking requires playing in regulatory confines, which means we will not be able to provide crypto and banking services together. We will provide SME banking services for our clients if there is a need. What we will not provide are crypto services."

Vella Finance entered the financial landscape in 2021, offering fintech-as-a-service (FaaS) that allowed crypto-enabled businesses to build crypto payment gateways using its APIs. The fintech is currently engaged in discussions to de-board enterprises that had previously integrated its crypto payment infrastructure into their systems.

While the company's 'Global Pay' option facilitated cross-border payments in both crypto and fiat across more than 80 countries, it's now stepping away from the crypto sector.

This strategic shift echoes a growing trend among crypto-focused companies operating in Africa. Several have either repositioned their focus or ceased their crypto operations entirely in 2023 due to a range of challenges, including regulatory constraints and funding issues. In June, Bundle shut down its crypto exchange services after three years.

Vella Finance's decision reflects its commitment to furthering SME growth and providing comprehensive solutions for African businesses. The company's ability to address the needs of informal, underserved SMEs and enhance their financial inclusivity will likely be a significant step toward supporting the growth of the African business ecosystem.

In the coming weeks, Vella Finance is expected to introduce new features as it continues to transform into a fully-fledged business banking provider. This evolution represents an exciting development within the African fintech landscape, showing that adaptability and strategic focus can lead to substantial opportunities.