Ripple, the blockchain solutions company behind $XRP token, has announced a partnership with Pan African fintech, MFS Africa, to streamline real-time mobile payments for MFS Africa customers across 35 African countries.
MFS Africa is the leading fintech with the largest mobile money footprint in Africa connecting over 400 million mobile wallets across 35 African countries.
“We’re delighted to advance this mission through our partnership with Ripple to enable fast, secure, and low-cost remittances at scale,” said Dare Okoudjou, CEO at MFS Africa.
In a statement, Ripple highlighted its On-Demand Liquidity (ODL) solution which it said reduces the frictions and bottlenecks associated with sending money across borders via legacy payment rails.
We’re thrilled to announce that our On-Demand Liquidity (ODL) solution is expanding via our partnership with @MFS_Africa!
Africa holds 70% of the world's $1T mobile money value, and ODL will further enhance digital payment rails across the continent.https://t.co/Ywd4dzBnZA
— Ripple (@Ripple) November 15, 2022
According to the statement, some of the problems associated with the legacy rails include:
- Expensive fees
- Slow payment settlement times
- access to a physical bank branch
Ripple indicated that Africa will be responsible for much of the growth as mobile money users hit 70% of the global population. However, markets in Africa struggle to source liquidity and there is an opportunity for crypto solutions like ODL to buttress businesses that cannot source capital via traditional sources.
Headquartered in South Africa, MFS Africa provides mobile financial solutions and has more than 400 million mobile wallets across 35 African countries while operating upwards of 800 payment corridors across the continent. The company offers remittance, money transfer, micro-lending, insurance, and payment services.
Besides the partnership helping in the remittance part of MFS’s operations, CEO, Dare Okoudjou, revealed that this is the first step in the fintech’s crypto strategy.
“The Ripple MFS Africa partnership represents a confident, important, and bold first step for our crypto strategy to leverage blockchain technologies to amplify our impact on consumers and businesses on the continent. Growth in a new economy.”
In August 2022, Kenyan fintech, Pezesha, entered a partnership with Cardano to leverage DeFi pools for liquidity and offer affordable capital critical for the growth of various sectors of the economy.
Besides Pezesha and MSF Africa, Chipper Cash has also engaged crypto firms to shore up its products.
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