Bitpesa and SBI Remit have partnered in a move aimed at making it easier for Africans to purchase products from Japan. Bitpesa is a digital solution that allows for fast and cheaper transactions across frontier markets through the use of Blockchain technology while SBI Remit is the biggest remittance service provider in Japan.
No Need For Conversions
The two parties will be using Blockchain technology to improve the efficiency and operation of payments made across the two continents while reducing the time spent for such transactions to go through. Businesses will also be able to scale faster between the two continents.
Through this partnership, businesses in Africa will be able to deposit funds in their local fiat currency on to the Bitpesa account without having to convert the currency. Elizabeth Rossiello, who is the founder and Chief executive of Bitpesa has said that not only is there no need for the client to convert the currency before depositing it, she also added that the total time is well under the two weeks that most banks require to facilitate such transfers and at much lower fees.
She explained that through the partnership with SBI Remit, Bitpesa will be able to transfer the funds to the SBI network after which SBI Remit will then pay their larger Japanese network.
Focusing On Specific Industries
The partnership between Bitpesa and SBI Remit will be mainly focusing on three key industries in both Africa and Japan, those being the cosmetics, electronics and used cars industries. Through this partnership, car dealers in Japan will be able to bring down the forex risk when converting currencies and at the same time easily expand into other markets.
This is a first for SBI Remit in terms of partnering with a company in Africa. SBI Remit is a subsidiary of the SBI Group which has been a pioneer for internet-based financial services in Japan. This partnership will be addressing the demand to get into the African market that most Japanese businesses have. Currently, there are over four hundred registered Japanese businesses in the African market. all these businesses will be requiring a seamless mode of payment that is not hampered by the long conversion wait times according to Rossiello.
She added that even though the African market was at the moment enjoying a growing interest by the rest of the world, the lack of a hybrid system of payment was resulting in a hesitation. Through this partnership with SBI Remit, she said that they have succeeded in creating a forex solution that was not only easy to use but was also fast and safe to use. Japanese companies will be able to trade with G20 currencies and transactions can be instantly facilitated by all the major banks in Africa and mobile money providers.
Looking For More Partnerships
Rossiello has said that Bitpesa, which has licenses to operate in the EU (European Union) from the UK (Financial Conduct Authority) and the bank of Spain, is looking for other collaborations such as the one it has with SBI Remit as other regions across the globe increase trading with Africa.