Onafriq partners Ripple on crypto-based cross-border payments
Ripple, a leader in enterprise blockchain and crypto solutions, has partnered with Onafriq (previously MFS Africa), a leading payments fintech, to facilitate digital asset-enabled cross-border payments between Africa and new markets, including the Gulf Cooperation Council (GCC), the UK, and Australia.
Onafriq is leveraging Ripple Payments, Ripple's crypto-enabled payments technology, to establish three new payment corridors connecting Africa to the rest of the world. Customers of PayAngel in the UK, Pyypl in the GCC, and Zazi Transfer in Australia can now conduct fast and cost-effective remittances and business payments to recipients in 27 countries across Onafriq's pan-African network.
Using Ripple's crypto technology, Onafriq aims to overcome traditional challenges associated with cross-border payments, such as lengthy transfer times, unreliability, and high costs. The partnership aims to bring faster, more efficient, and cost-effective international money transfers to Africa, accelerating financial inclusion across the continent. This collaboration highlights the potential for blockchain and crypto solutions to address longstanding challenges in cross-border payments, ultimately benefiting individuals and businesses across diverse regions.
Key Takeaways
In the past ten years, remittances to Africa have doubled, reaching $100 billion in 2022; higher than foreign aid and investment. In some African countries, they account for as much as 20% of GDP. But in spite of their key role, remittances face high transfer fees, which can be as high as 20% of the amount transferred sometimes. Recognizing the challenges in the traditional money transfer method, the partnership proposes the use of blockchain to facilitate remittances to Africa. Specifically, it’s tapping stablecoins, which are cryptocurrencies pegged to fiat currencies like USD, to move money internationally at a fraction of the costs of the old way.
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