Africa and Japan Adopting Blockchain Technology for Cross-Border Payments

Blockchain technology is adopted by many countries to explore its benefits in different fields. Many countries are collaborating to maximize the prospects offered by blockchain technology. Recently, Switzerland and Israel joined hands to refine blockchain based prospects . Similarly, Africa and Japan have moved forward to ease the money transfer procedure in-between them with the help of blockchain technology.

BitPesa, a payment platform for frontier markets, has teamed up with Japan’s SBI Remit, largest remittance service provider, to make transfer of payments possible between Africa and Japan. With the latest development, Africans buyers and Japanese companies are linked together through a efficient, economical and comfortable channel that allows direct transfer of funds between both countries. The simple and comfortable money transfer will reduce the Forex risk for Japanese industries, cosmetics, electronics and used cars, while they market their goods in Africa. Hence, the move will ensure that industries gain more profits by expanding their market. Ken Dong, founder of IyueDan, Asian freelancing marketplace, chief adviser of YouDeal, a blockchain enabled marketplace for sharing economy, enlightened BlockPublisher with his opinion on the matter. He suggest working with industries is an essential step to make a large difference. He said:

To encourage mass adoption (of blockchain technology) and make the biggest difference to the most lives, we realistically need to work with existing industries and regulators to ensure fairness and consistent standards.

Currently, BitPesa is providing assistance to African businesses, multinational companies and banks etc. It is operating in China, Kenya, Nigeria, Tanzania, Uganda, Senegal and the Democratic Republic of the Congo and UAE. It is superior to the traditional money transfer process as it deducts low percentage on transfers i.e about 3 or 4 percent on the average. Besides being cheaper than other service providers, money is transferred in short time span, ranging from an hour to maximum a day, as mentioned on BitPesa’s website. Apart from this, BitPesa eliminates all intermediate stops at different banks for money conversions by directly moving the money to the destination account from user’s account. BitPesa comforts African buyers by providing them with an easy and simple way to approach foreign products and buy them.

BitPesa has been keen to open up more options in other parts of the world for Africa. In future, it is expected that like SBI Remit, BitPesa will be looking forward to partner with other organizations for fulfilling its aim.

Fatir Malik

Electrical engineer by profession, turned into blockchain developer. Fatir contributes regularly with his insights about latest developments in fintech sector. Contact the editor at editor.opinions@blockpublisher.com

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