Fintechs Centi, Centbee to launch blockchain-based remittances for Africa

Swiss fintech company Centi, and global digital cash wallet Centbee, announced at the London Blockchain Conference that they have joined forces to "redefine remittance services" from Switzerland to Africa.

Deploying advanced blockchain technology, this partnership aims to make cross-border money transfers more streamlined, cost-effective and inclusive.

"Remittances are the financial backbone for many African households, with Switzerland's sizeable diaspora community playing a significant role. According to the World Bank, in 2020 remittances from Switzerland to foreign countries surpassed $8.2 billion, with a substantial portion dedicated to African countries," South African-headquartered Centbee said in a statement.

Traditionally, remittances rely heavily on bank transfers and credit cards, creating challenges for the unbanked and underbanked communities in Europe and Africa.

To address this critical issue, Centi has developed a cash on-ramp feature, whilst Centbee offers off-ramps in various African countries including Ghana, Senegal, Cameroon, Nigeria, Kenya and Uganda.

Deploying advanced blockchain technology, the partnership between Centi and Centbee aims to make cross-border money transfers more streamlined, cost-effective and inclusive. (Source: Image by prostooleh on Freepik)

"This union is expected to bring about a marked improvement in remittance services, providing much-needed financial relief to families and communities in Africa," the statement continued.

Reducing the cost of mobile money transfers

The companies claim that its preliminary tests indicate that sending 50 Swiss Francs (US$55) in cash to Ghana using the service could be 85% cheaper than the current market leader, which translates to recipients getting up to 30% more cash-in-hand.

The partnership is also eyeing greater savings potential by leveraging Centi's blockchain technology combined with a Swiss bank-guaranteed stablecoin, alongside Centbee's digital cash wallet and knowledge of the African market.

"Our collaboration with Centbee is rooted in a shared commitment to making financial services more accessible and affordable for underbanked communities. Together, we aim to challenge and transform the remittance landscape," said Bernhard Müller, CEO of Centi.

Centbee CEO Lorien Gamaroff agreed, saying the partnership aligns with its mission to make digital cash accessible to everyone.

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*Top image source: Image by starline on Freepik.

— The Staff, Connecting Africa