Blockchain technology is hacking down the forest of fees that has made remittances such a lucrative business for banks and transferring agents.
As this table from the World Bank shows, sending a relatively small amount of R1 340 from SA to Kenya costs an average of 12%. Using blockchain technology, companies like Paxful, Flutterwave, AppZone Switch and Chipper Cash are gate-crashing that party, allowing remittances for as little as 1% – and even that low cost is dropping fast as more competition enters the market.
“For years we’ve heard talk of how blockchain technology will revolutionise business, but now we are seeing the evidence,” says Sonya Kuhnel, director of Bitcoin Events.
“The big use case for blockchain in Africa is remittances, and in some countries these inflows account for 4% to 5% of GDP. So to have 12% of that swallowed in costs is massive. Here is an excellent example of the kind of disruption blockchain technology is bringing to Africa.”
The Blockchain Africa Conference 2022, a virtual conference that take place on March 17-18, features some…
