Global crypto marketplace partners with African fintech startup

Global crypto marketplace, Paxful has partnered with African financial services tech startup, Uhuru Wallet.

The mobile payment platform will be added as a payment method on Paxful, promoting easy access to the crypto marketplace for users in the Southern African region. 

Uhuru digital Wallet is introduced to ease Africans into the cryptocurrency space

Established in 2015 and founded by Ray Youssef, and Artur Schaback , Paxful offers over 300 different payment methods and is one of the world’s leading peer-to-peer bitcoin marketplace. 

With the introduction of Uhuru Wallet’s payment method, users on Paxful will be able to easily purchase and sell bitcoin and Tether (USDT). With both platforms aiming to facilitate financial inclusivity in the global and African market, the partnership is a match made in heaven.  

The Uhuru Wallet payment method implemented on Paxful is cost-effective and allows users to pay for goods and services including; electricity vouchers, airtime, lottery, and payments for DSTv, Avon, and INUKA all across Africa. 

In an official press release, Ray Youssef, CEO, and co-founder of Paxful explains that the partnership with Uhuru will create more opportunities for African users to engage in cryptocurrency and have an alternative payment method despite financial systems setbacks.

“This is the perfect opportunity to partner with local talent and support the growth of the crypto community in South Africa. By joining forces with Uhuru, we can unlock more options for our African users, many of whom are held back by restrictions of traditional financial systems, so we’re making crypto more accessible as a real-world payment method.”

Alternative transactions across borders

Uhuru Innovative Solutions, a Zimbabwean startup founded in 2017 launched the Uhuru Wallet in 2020. The development of the Uhuru Wallet aligned with its aim to create a peer-to-peer platform that allows individuals and enterprises to make money transactions from anywhere, contributing to the idea of borderless currency. 

Uhuru Wallet will be accessible via WhatsApp, reaching a wider group of users. The service is secured with end to end encryption, and transactions will be easy to complete on the interactive platform. The Uhuru digital Wallet can perform person to person transactions, person to merchant transactions, and allow users to cash in or out, pay for personal bills and goods and services. 

Reginald Tsvetu, Marketing and Business Development Officer (CMBDO) for Uhuru Wallet comments on the partnership with Paxful and how the borderless payment method will result in financial inclusivity. 

“We’re thrilled to be able to partner with a leading international marketplace like Paxful. Uhuru is a product for Africans by Africans and we share Paxful’s vision of greater financial inclusion. We look forward to working with them to include more Africans in the global economy.” 

Cost of transactions

A recent report by Chainanalysis, a blockchain forensic and research group, on the topic of cryptocurrency indicates that crypto transfers that occur monthly to and from Africa have increased by more than 55% in a single year, resulting in $316-million in transactions reached in June 2020. 

The number of monthly transfers surpassed 600 000 transactions with Nigeria, SA and Kenya reported as the countries with the most activity. 

Youssef discusses the challenges of sending money across the border faced by Africans and explains the solution on offer to ease Africans into the cryptocurrency space. 

“Many Africans living abroad face difficulties when it comes to remittances or payments, as modern money transfer operators are often expensive and time-consuming. We are now providing our users with a practical and cost-effective process offering them a global financial passport. For true financial inclusion to happen, a free market for money transfers is required.” 

Paxful is identified as a pioneer in the peer-to-peer cryptocurrency space as they celebrate its fifth year in service. Nigeria, Ghana, Kenya, and SA are the main markets contributing to the success of Paxful. The new partnership with Uhuru has created an alternative, cost-effective system that offers personal and business-related transactions that can be performed across borders. 

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Featured image: Dmitry Demidko via Unsplash