Elizabeth Rossiello, founder and CEO of Bitpesa, has claimed that bitcoin-based remittance services have reduced the costs of international payments by 75% and cut the average settlement time from 12 days to approximately 12 hours. This breakthrough is transforming cross-border payments in Africa.
How Bitpesa Transformed African Remittance
Founded in 2013, Bitpesa provides cheaper and faster remittance services to African markets compared to traditional players like MoneyGram or Western Union. Rossiello stated: "Bitpesa was the first company in the world to establish a market between African currencies and digital currencies. We lowered the cost of international payments by 75% and reduced the time to settle between currencies from 12 days to less than 2 hours." The company primarily operates in Uganda, Nigeria, Kenya, and Tanzania, with headquarters in Luxembourg and FCA licensing in the UK. Beyond serving individuals and small businesses, Bitpesa claims numerous multinational corporations rely on its services to circumvent inefficient payment settlements plaguing Africa's financial sector.
Opportunities in Africa and Changing Attitudes
Rossiello noted that Africa's underinvestment in infrastructure creates a unique opportunity for bitcoin and cryptocurrency services. "There has been such an under-investment in infrastructure for so long in Africa, there was a lot of opportunity to bring efficiency into this market. It's a big opportunity." She also highlighted shifting views among major international financial institutions and mainstream media. "There was a big misconception repeated in the media about the technology being less safe – despite the fact that the Bank of England, the World Economic Forum and the IMF have all conducted research stating the technology has a low-risk for fraud, certainly much less than cash and traditional transfer methods. The technology is here to stay and the tone has begun to change in the media. Making global payments using the bitcoin blockchain is safer, more efficient, and cheaper."
Citizens across Africa are witnessing an expansion of bitcoin-based remittance services. Remitano, a Vietnam-based but Africa-incorporated provider, recently entered Nigerian, Kenyan, and Tanzanian markets, directly competing with Bitpesa. Although positive benefits are undeniable, most major companies remain offshore, perpetuating a model of foreign-based money transmitters profiting from African labor. However, the recent announcement that Zimbabwe-based Bitmari became the first bitcoin company to partner with an African commercial bank signals a positive shift for the African bitcoin remittance industry. African companies gaining an early foothold in the bitcoin remittance space could drive much-needed economic dynamism on the continent and enable African economies to recapture capital lost through international money transmission.