Top Japan Insurance Provider Sompo And Africa’s BitPesa Blockchain Platform To Improve Cross-Border Payments
Sompo And BTC Africa Team Up In Efforts To Improve Cross-Border Payments
Sompo Holdings is considered to be one of the top three insurers in the entire nation of Japan, which makes each of their partnerships significant. According to a report by Forbes on November 12th, the company has initiated a business partnership with BitPesa. BitPesa, which also goes by the name BTC Africa, is a digital foreign exchange platform and treasury solution that serves citizens of Africa.
Both Sompo Holdings and BitPesa are feeling encouraged and optimistic about the efforts. Elizabeth Rossiello, the CEO and founder of BitPesa, told Forbes,
“We focus on giving our customers the ability to transact between currencies. Now, we are welcoming other partners from around the world who want access to these markets. Sompo Holdings is one of the largest Japanese insurance companies and they are looking for new markets and opportunities. We can give them immediate access to these markets. For all the financial services they offer, we can provide all the cross-currency transactions to remove any currency risk.”
The general manager for Sompo Digital Ventures and Sompo Holdings, Takehiko Eguchi, said,
“We are very excited about our partnership with BitPesa. Initially, I did not think that our paths would ever cross. However, as I gain deeper understanding of the cross-border money transfer environment, especially in Africa, I see how BitPesa’s mission will completely revolutionize this industry. We are looking forward to tackling this challenge together with BitPesa.”
In this collaboration. BitPesa will provide blockchain services that would help with Sompo change the way that financial transactions happen over borders. Both entities are focused on promoting global trade and gravitating towards the digitization of financial services internationally. With how necessary it is becoming to provide services that can cross borders, having the ability to support the financial needs of these activities is crucial. Some of the biggest challenges of the market are lengthy processing times and expensive fees. By eliminating these concerns, global trade can progress while benefiting the economy at the same time
BitPesa’s role will be to use blockchain settlements, reducing the time and money spent on these cross-border transactions. With the skills they offer to this effort, Sompo Holdings realized that forming a business alliance with BitPesa would be greatly beneficial for “macroeconomic development, as Forbes writes. BitPesa has already reached many markets in multiple continents, but this partnership specifically will help reduce the biggest issues of the market.
Sompo Holdings will be providing BitPesa with a substantial investment, which is meant to improve the infrastructure of the company. Furthermore, it will allow them to establish roots in the Middle Each and Africa, adding to their current $10 million in funding from other partners. However, by using the Sompo Holdings name, they have “international credibility,” and they are capable of reaching more people.
“Any kind of transaction value for us is exciting because we have access and liquidity to all of these currencies and markets. Our number one goal is to increase liquidity in frontier market currency. It’s exciting for us if we can bring in partners that will eventually bring in flows for new currencies.”
According to Forbes,
“Together, Sompo Holdings and BitPesa will work to manifest a society in which goods and value can move back and forth frequently around the globe by harnessing virtual currency through a cost-effective and efficient digital platform. Ultimately, the firms plan to revolutionize the way businesses and individuals make financial transfers across borders.”
Before this new collaboration, this firm partnered with SBI Remit, which is a money transfer company in Japan. The purpose of this collaboration was to make it possible for about 500,000 customers to send money into Africa through the Bitcoin Blockchain. There’re no banks involved now, since BitPesa’s use of SBI Remit applies blockchain settlement services, taking about one hour to send transactions from one location to the next.
Expanding on this topic, Rossiello said,
“While we did something similar with SBI Remit, our alliance with Sompo is less about sending money to other people, and more about financial transactions and services and supply flows. SBI Remit focuses on small business and person-to-person transfers, while Sompo is disrupting financial services.”