Kenya-based BitPesa and Japan-based SBI Remit partnership aims to streamline payment process between Japanese and African businesses.
BitPesa, a Kenya-based company that offers digital treasury management solution using blockchain technology partners with SBI Remit, a subsidiary of a Japanese company, SBI Group to provide faster and more simple payment solution for businesses that involve both countries.
Explained by BitPesa's founder and CEO, Elizabeth Rosiello, African customers can now deposit money in their local currency into their BitPesa's bank account, without needing to do any initial currency conversions. She said, "Using SBI Remit’s payout network, we transfer the money to SBI Remit, and they can pay out to their large Japanese network."
Rosiello claimed that the transaction fees are way smaller than banks' and that it takes shorter than 2 weeks for the fund to reach the destination, which is the amount of time required by most banks.
Both companies see a huge opportunity as there's a demand for Japanese products in Africa, for instance used cars, which is also shown by many Japanese businesses that wish to enter the African market. This, sadly, is not supported by an adequate payment system in the continent. All banks in the Africa regions require local currency to be converted into G20 currency before making overseas payment, on which the conversion cost is considered too high by small companies.
Focusing on several industries, such as cosmetics, electronics and used cars, the partnership expects to improve the liquidity of fund for any currencies involved in all business transactions between both regions, as reported by CCN.
In the long run, BitPesa is looking for similar partnership with other regions worldwide to open access to Africa, which is in line with the company's vision "To accelerate the growth of businesses in frontier markets."