Truecaller and Nigerian FinTech startup, Paystack, have entered into a partnership to allow more Afrikan businesses to accept online payments. The caller ID and spam call blocking platform has said that the partnership will leverage their mobile identity product, Truecaller SDK (TrueSDK).
TrueSDK allows Truecaller users to utilize their Truecaller credentials to sign-up with one-touch to other third-party apps, in this instace that wil be Paystack, using their phone number.
For Paystack, which is reported to process approximately 20% of the online transactions in Nigeria, the benefit is that now it can enable businesses in Nigeria to accept payments from anyone anywhere on earth. Furthermore, it can even allow unregistered Nigerian businesses businesses to also accept online payments given that all they require is their mobile number and the Truecaller app.
"The Paystack-Truecaller partnership means that in addition to Paystack’s proprietary merchant risk assessment checks, merchants can now verify their mobile identity via Truecaller. Integrating Truecaller SDK as a verification mechanism strengthens the Paystack platform’s merchant verification process and also makes it possible to open up Paystack to the millions of unregistered businesses who were previously unable to accept online payments with Paystack," reads a statement by Truecaller announcing the partnership with Paystack.
The two main highlights of the partnership are:
Unregistered businesses in Nigeria can accept online payments after being verified via Paystack’s in-house verification process, which now includes phone number identity verification using TrueSDK.
Nigerian businesses and developers receiving payments via Paystack can build customer verification tools on top of Paystack’s Truecaller phone number verification API.
Paystack already makes three verification options available to developers – the ability to verify the Bank Verification Number (BVN) of customers (BVN is an identifying number issued by Nigerian regulators), the ability to verify bank account details, and the ability to verify card details. Truecaller will be a fourth, new verification option, and the impact of this will be to create more trust in the payments flow for African businesses. However, this is an interesting partnership which will likely empower businesses who traditionally wouldn't be exposed to online payments and as a results opening them up to new customers.