Ecobank, XTransfer launch cross-border payments for SMEsEcobank, XTransfer launch cross-border payments for SMEs

Pan-African financial services firm Ecobank Group and Chinese company XTransfer have signed a memorandum of understanding (MoU) to roll out cross-border financial services to Africa's small and medium-sized enterprises (SMEs) engaged in foreign trade.

Ecobank said its collaboration with XTransfer will facilitate trade between China and African countries.

XTransfer will use Ecobank's African network to help its Chinese clients collect funds in local currencies and support African SMEs in making payments in home currencies, avoiding foreign exchange complications.

XTransfer Founder and CEO Bill Deng said the collaboration represents a significant milestone for XTransfer and greatly enhances the company's global payment capabilities.

"Leveraging Ecobank's extensive payment network in Africa will accelerate our business expansion in the region," Deng continued.

Partnership to simplify SME payments

Ecobank Group CEO Jeremy Awori explained that the partnership builds on the bank's strategy, which includes a representative office in China.

"By integrating XTransfer's cutting-edge solutions with our pan-African payment platform, we simplify payments, reduce transaction costs, and enable African businesses to thrive in global trade," Awori added.

The Ecobank Group, present in 35 African countries, is an independent regional banking group in West and Central Africa that has championed growth in the fintech ecosystem through programs like its recent Fintech Challenge.

Related:The state of digital transformation in African banks

In October 2024, the company declared Daba Finance from Côte d'Ivoire as the winner of its Ecobank Fintech Challenge 2024, awarding it the grand prize of US$50,000.