Two Zimbabwean startups, Flexid and Uhuru Wallet, recently launched a platform that offers digital identity and remittance services to migrants living and working in South Africa. The two startups hailed what they’ve described as the “first cross-chain collaboration between the two companies.” The Zimbabwean blockchain startup Flex ID and the South Africa-based Whatsapp remittance platform, Uhuru Wallet, said they have launched a platform that offers “combined digital identity and remittance services to millions of Zimbabwean immigrants in South Africa.”
The two startups hailed what they described as the “first cross-chain collaboration between the two companies.” As revealed in the statement, Flex ID, which was co-founded by Victor Mapunga, harnesses the Algorand blockchain, while the Uhuru Wallet is built on the Stellar blockchain. Through this working arrangement, the startups also hope to handle or overcome the problem of high sending fees, limited access to formal financial services, as well as identity verification issues.
Remarking on the two startups’ joint solution, Trust Jakarasi, the CEO and founder of Uhuru Wallet, said: “We are excited to partner with FlexID to offer our customers a more streamlined and secure remittance experience. By combining our strengths in digital identity and remittance services, we can better serve the needs of Zimbabwean immigrants in South Africa.”
Mapunga, in the meantime, spoke of the virtues of blockchain as well as the importance of deploying the technology. “By leveraging blockchain technology, we can provide a secure and efficient way for users to verify their identity and access financial services, no matter where they are,” the CEO of Flex ID insisted.
Although South Africa is ranked among the biggest senders of remittances in sub-Saharan Africa, it costs anywhere between 5% and 20% to send money to Zimbabwe when using registered money transfer agencies. This, in turn, forces many Zimbabwean migrants to use alternatives such as couriers or unregistered remittance platforms. The emergence of a blockchain-based solution widens options for Zimbabwe migrants and will likely help drive down the average cost of remitting funds.
The development of a blockchain-based platform to facilitate digital identity and remittance services is a major milestone for the African continent. It is a demonstration of how blockchain technology can be used to improve the lives of African migrants, who often face considerable challenges when trying to send money back home.
The platform launched by Flex ID and Uhuru Wallet is also a great example of how two companies can collaborate to create a more secure and efficient remittance experience for their customers. The two startups have demonstrated that it is possible to create an effective and secure platform by combining the strengths of two different blockchain networks.
The platform will also help to improve financial inclusion in Africa by providing access to formal financial services for millions of Zimbabwean immigrants who are unable to access such services due to their lack of identity documents. The platform will also help to reduce the cost of sending remittances and make it easier for migrants to send money back home.
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As blockchain technology continues to gain traction in Africa, more startups are likely to develop similar solutions to address the various challenges faced by African migrants. The development of a blockchain-based platform to facilitate digital identity and remittance services is a major step forward for the continent and will help to improve the lives of millions of African migrants.
The platform launched by Flex ID and Uhuru Wallet is a great example of how two companies can collaborate to create a more secure and efficient remittance experience for their customers. It also demonstrates the potential of blockchain technology to improve financial inclusion in Africa and reduce the cost of sending remittances.
The success of the platform will depend on its ability to provide a secure and efficient remittance experience for its users. The platform must also be able to handle identity verification issues and provide access to formal financial services for millions of Zimbabwean immigrants.
The development of a blockchain-based platform to facilitate digital identity and remittance services is an important step forward for the African continent. It is a demonstration of how blockchain technology can be used to improve the lives of African migrants and reduce the cost of sending money back home. The success of the platform will depend on its ability to provide a secure and efficient remittance experience for its users.
