Swiss fintech pioneer Centi and global digital cash wallet Centbee have announced their partnership, aimed at redefining remittance services from Switzerland to Africa. By harnessing advanced blockchain technology, this collaboration is set to streamline cross-border money transfers, making them more cost-effective and inclusive. With remittances serving as the financial backbone for many African households, this partnership holds immense potential for empowering the African diaspora community. In this article, we will delve into the details of this revolutionary venture and explore its implications for financial inclusion in Africa.
Remittances play a crucial role in supporting families and communities across Africa, and Switzerland’s sizable diaspora community is a key contributor to this flow of funds. In 2020 alone, remittances from Switzerland to foreign countries exceeded $8.2 billion, with a significant portion allocated to African nations. However, traditional remittance methods, relying on bank transfers and credit cards, have presented challenges for the unbanked and underbanked populations in Europe.
Centi and Centbee have recognized the need to address the hurdles faced by underbanked communities and have devised innovative solutions. Centi has developed a unique cash on-ramp feature, while Centbee offers off-ramps in several African countries, including Ghana, Senegal, Cameroon, Nigeria, Kenya, and Uganda. This collaboration presents a synergistic approach that promises to enhance financial inclusion significantly.
Preliminary tests conducted by the partnership indicate that using Centi and Centbee’s combined service, sending CHF 50 in cash to Ghana could be up to 85% cheaper than using the current market leader. This cost reduction translates into recipients receiving up to 30% more cash-in-hand for the same CHF 50 sent from Switzerland. Such affordability and increased savings have the potential to challenge traditional high-fee remittance service providers.
To achieve even greater savings and efficiency, Centi’s groundbreaking blockchain technology will be combined with a unique, Swiss bank-guaranteed stablecoin, while Centbee will contribute its user-friendly digital cash wallet and extensive knowledge of the African market. This amalgamation of expertise and technology is expected to bring about a significant improvement in remittance services, providing much-needed financial relief to families and communities in Africa.
Bernhard Müller, CEO of Centi, emphasizes that this partnership is driven by a shared commitment to making financial services more accessible and affordable for underbanked communities. Together, Centi and Centbee aim to challenge and transform the remittance landscape. Echoing this sentiment, Lorien Gamaroff, CEO of Centbee, expresses confidence that this partnership will bring significant benefits to users and the wider African community.