The foundation has declared that it will help to start a new channel for remittance between Africa and Europe using the USDC or USD Coin stablecoin. The SDF recently declared that Flutterwave, a global payment technology business, will use the USD or USD Coin stablecoin on the network of Stellar to make remittances between Europe and Asia simple.
Flutterwave and Tempi Payments, a money transfer operator based in Paris, will work together to achieve this new goal. Tempo Payments is the principal EU payments partner of Stellar.
Cost-effective money transfer services
The CEO of Flutterwave, Olugbenga Agboola remarked it is costlier to transfer money to some parts of Africa than any other country in the world. Agboola also stated that their new partnership will help to expand the network and introduce cost-effective and all-important money transfer services to business owners in Africa.
Flutterware claims it processed over 140 million transactions amounting to more than 9 billion USD to date. The firm served more than 290,000 businesses. Some of these businesses are Facebook, Booking.com, and Uber. It has an existing infrastructure in over 33 countries in Africa, such as South Africa, Kenya, Uganda, Rwanda, and Nigeria.
The Stellar Development Foundation has been eyeing Africa for about a year now, and it teamed up with ClickPesa, a Payment firm in East Africa in November 2020. The foundation and its partners are likely to face tough competition because there are several payments businesses already operating in Africa. Some of these are Transferwise, Azimo, WorldRemit, Xoom, and Payoneer.