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Kenya’s Wapi Pay raises $2.2M pre-seed for cross-border payments between Africa and Asia – TechCrunch

According to the World Bank, sending money to sub-Saharan Africans is more expensive than anywhere else in the world... It is also the most expensive area to send money. In the first quarter of 2020, people spent an average of 8.9% sending money to the region. This is well above the world average of 6.8%.

There is a lot of talk about remittances from Africa to the West, with many startups using traditional fiat and cryptocurrencies. Facilitate Cross-border payments between the two corridors. butThere is almost no noise about the corridors between Africa and other regions like Latin America and Asia.

For example, in South Asia, the average remittance cost is the lowest at 4.95% in all regions (these percentages). Will be reported With a standard $ 200 remittance); Therefore, it makes sense to take advantage of the opportunities offered by the market. Wapi PayA Kenyan startup with offices in China and Singapore, is doing this play and has opened up its own market by facilitating payments between the extreme remittance worlds of Africa and Asia. ..

Wapi Pay founded in 2019 by the Paul and Eddie Ndichu brothers It provides a payment gateway for African companies to send and receive money from Asia via mobile money platforms and bank accounts.

The focus on remittances is the flow of funds for remittances to Africa. therefore, Has been digitized In many cases Focus on delivery rather than building new infrastructure and payment processing models for African individuals and businesses to create Cross-border payments.

Financial institution Remaining Serve customers using traditional systems and communication models.These transactions are In essence Given the compliance requirements, it’s inherently complex. The lack of new infrastructure or processes makes them even more opaque, time consuming and too costly to process... Cryptographic money transfer startups claim to solve this problem, but no one has successfully scaled it to effective usage...

“We started WapiPay to see how fragmented our payment infrastructure is and how terrifying the experience and costs of making and receiving payments with and from Asia,” Peter Ndichu said on TechCrunch. Told to.

“Given the growing trade relationship between the two corridors, we spent some time in Asia. [Africa and Asia] And we saw the evolution from remittances to global payments, and the need to make them more efficient, faster and cheaper. These transactions are already complex in nature. How can it be as simple and easy as mobile money? He added.

Trade between Africa and China in the first quarter of 2021 increased 27% compared to 2020 to $ 52.1 billion. Despite the economic recovery from the pandemic, African merchants still find it expensive to send and receive money.. In some cases, these costs can be as high as 20%, especially in Southern Africa.Waiting times can also be ridiculous, with some people spending up to a week before paying Will be processed.. Wapi Pay states that it can process payments within a day and charge a minimum of 3%.

“WapiPay bypasses traditional payment networks and optimizes your efficiency and cost. Users choose their preferred delivery channels, such as bank-to-bank, wallet-to-wallet, bank-to-wallet, wallet-to-bank options, and more. Choose to settle within 24 hours, transfer funds or pay merchants, “said CEO Eddie in a statement. ..

Current, Wapi Pay works with local banks and platforms in China, Indonesia, India, Japan, Malaysia, Philippines, Singapore, Taiwan, Thailand and Vietnam. The company claims to have grown 396% year-on-year since 2019 and hopes to continue in that way. By the end of next year, Wapi Pay wants to process $ 500 million in remittances and increase the number of African merchants and Asian suppliers to 500,000 and 100,000. Each..

The $ 2.2 million pre-seed investment announced today is essential to achieving these goals for expanding global payments and remittances between Africa and Asia.

This round is one of the largest rounds in East Africa and the continent. Participating ventures include China-based fund MSA Capital, known for investing in Unicorn Meituan, Nubank and Clarna. Pan-African and African-focused companies Echo VC, Kepple Africa, Future Hub; Pan-Asian companies Transion Holdings and Gobi Ventures.

Wapi Pay will use this investment to reach out to regulators for licensing, scale, products and geographic expansion across Africa.

“These funds will help Wapi Pay diversify its product range and drive growth, which will allow remittances to evolve into real-time, global cross-border payments, including in Africa and Asia. You can. It should be as easy as sending an M-PESA while minimizing the cost of the transaction, “Eddie added.

“From Africa to Asia is a large trade corridor that is overlooked and underserved by today’s technology. we believe Wapi Pay is the best team to build the infrastructure needed to support growing trading volumes... NS Excited We support them with our extensive Chinese fintech network and playbooks. ” Tim Chen, MSA Capital Vice President said in a statement..

Kenya’s Wapi Pay raises $2.2M pre-seed for cross-border payments between Africa and Asia – TechCrunch Source link Kenya’s Wapi Pay raises $2.2M pre-seed for cross-border payments between Africa and Asia – TechCrunch

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