- Sompo Holdings, a Tokyo-based insurance firm, just partnered with BitPesa weeks after SBI Remit inked a deal with the blockchain company
- Sending money to friends and family in Africa is costly but blockchain may be able to save the day
- Somo Holdings is now a BitPesa shareholder
Japanese insurance firm Sompo Holdings recently inked a partnership agreement with BitPesa. Reports say that the deal will promote the digitisation of BitPesa’s remittance service.
The new development comes several weeks after Japanese money transfer company SBI Remit started working with the blockchain firm. According to SBI Remit representatives, the company's move will improve transactions between African countries and Japan.
Overseas transfer rates have always been high when sending funds to African countries, according to recent reports, but observers say that blockchain technology will be able to reduce these rates as well as improve trust among migrants who transfer money internationally on a regular basis. African blockchain firm BitPesa is capable of doing this, according to analysts, as the brand has already made a name for itself in the region. Since its inception, BitPesa has concentrated on bringing transparency and liquidity through Bitcoin. Its partnerships with two reputable companies in Japan is indicative of its capabilities, reports say.
The Luxembourg-based blockchain firm solves what analysts describe as “friction” involved in money transfers in Africa as its technology intermediates the transaction through a digital currency. According to the firm, this results in greater trust in sending money through its channels.
According to Sompo, its decision to sign a deal with BitPesa goes hand in hand with its expansion goals. Sompo executives say that the company wants to increase its market share in developing countries. The Tokyo-based firm is now a BitPesa shareholder and will be helping the company navigate the world of finance. Product testing of remittance services will also be done with Somo Holdings, reports say.
