Nigerian payments company, Flutterwave has just partnered with Tempo Money Transfer, a European blockchain company to facilitate secure remittances payments. The partnership allows Flutterwave support remittances into three African countries: Kenya, Nigeria, and Ghana.
This is a really huge deal as remittances is a big business, especially in Nigeria. In 2016, $20bn was sent into the country by Nigerians and others in the diaspora.
However, despite the number of payments company operating in the country, most Nigerians still find it difficult to receive money from abroad. No company has been able to provide a reliable way for Nigerians to receive foreign funds. The best solution has always been Western Union and Moneygram. Unfortunately, these middlemen charge really high fees for transactions, with roughly 10% paid for every $200 transaction.
Now, with the partnership with Tempo Money Transfer, Flutterwave seems set to disrupt that industry.
“We are excited for the impact this partnership will have on diaspora families who can now send bank payments to their loved ones back home for less”, said Iyinoluwa Aboyeji, CEO Flutterwave.
Tempo uses the open-source Stellar blockchain technology, a very interesting choice to enable quick transactions into verified banks accounts. Utilizing its own domestic platform, Flutterwave will make it easy for Nigerians to receive these foreign payments into their bank accounts directly.
Their partnership with Tempo is a fantastic example of the kind of innovation Flutterwave is enabling on the Stellar blockchain technology to bring down remittance costs and connect Africa to the global economy.
Operating in 20 countries, particularly European countries, customers can send funds to Nigeria using Tempo’s 300 agents. Transactions can also be made online or via Tempo’s mobile app.
Flutterwave Continues Africa Expansion
With its eyes on an Africa wide-expansion, this is the latest stride Flutterwave has recorded.
Mambo, Kenya! See you soon in Nairobi. Stick around and be the first to know when we touchdown. 🎊😎💳 pic.twitter.com/ke6w4r937v
— Barter by Flutterwave (@getBarterApp) June 21, 2018
We are very positive about this new blockchain partnership with Flutterwave. In the near future, we will be launching new receiving countries in Africa such as Ghana and Kenya also on the Stellar blockchain. -Jeffrey Phaneuf, CEO of Tempo
The new Tempo partnership offers the company more inroads into other African countries. Ghana, Kenya, and Nigeria are three of Africa’s largest economies with huge remittances coming from abroad. However, like Nigeria, foreign remittances payments are not so simple. But with the new Flutterwave solution things would change and the company would be keen to see an expansion of its services into other African countries.
Interestingly though, the new partnership means Flutterwave would take on another Nigerian company in the remittances business: SureRemit.
And even more interesting is that SureRemit uses the Stellar blockchain technology. But after launching a successful Initial Coin Offering in January 2018, not much has been heard about SureRemit.
Note: “A previous version of this article’s title: ‘Flutterwave Partners EU Company to Take on Western Union and MoneyGram‘ has been changed in order to avoid any form of misrepresentation.”