Stellar, the blockchain network dedicated to facilitating cheap cross-border financial transactions, is set to enable two more remittance channels between Europe and Africa.
According to an announcement released October 25, the Stellar Development Foundation (SDF) has partnered with payments firm Flutterwave to allow for USD Coin (USDC) powered remittances in the expanding Europe-Africa corridor.
The collaboration will see Flutterwave work with TEMPO Payments, a France-based company that was among the first to tap into the Stellar ecosystem.
The firms are looking to explore blockchain technology to make it easy for a growing number of people to send money from Europe to Africa. The project comes even as crypto usage in countries like Nigeria, Kenya, Ghana, and South Africa signals Africa's increasing status as an important crypto frontier.
Cost effective and faster payments
Olugbenga Agboola, Flutterwave's chief executive officer, noted in a statement that no other region is as costly as sub-Saharan Africa when it comes to sending money. According to him, the partnership with SDF and TEMPO opens up a payment corridor that ensures African businesses benefit more from "cost-effective money transfer services."
Suren Ayriyan, the CEO of Paris-based TEMPO, noted that the use of USDC and Stellar will see their customers from across Europe "send funds faster and at a lower cost to support their families and conduct business."
The cooperation with Flutterwave also makes it easier for customers to send money directly to an account at a local bank.
Flutterwave, which has a presence in over 30 African countries, counts major companies such as Facebook, Uber, and Booking.com among its client base. The payments company has reportedly processed over $9 billion worth of transactions.