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 described as the “first cross-chain collaboration between the two companies.”
Leverage the benefits of the blockchain
Zimbabwean blockchain startup Flex ID and South Africa-based Whatsapp remittance platform Uhuru Wallet recently said they have launched a platform that offers “combined digital identity and remittance services to millions of Zimbabwean immigrants in South Africa.”
In a statement shared with Bitcoin.com News, the two startups praised what they described as the “first cross-chain collaboration between the two companies.” As revealed in the release, Flex ID, which was co-founded by Victor Mapunga, leverages the Algorand blockchain, while the Uhuru Wallet is based on the Stellar blockchain.
Commenting on the joint solution of the two startups, Trust Jakarasi, CEO and founder of Uhuru Wallet, said:
We are pleased to partner with FlexID to offer our customers a faster and more secure money transfer experience. By combining our strengths in digital identity and remittance services, we can better serve the needs of Zimbabwean immigrants in South Africa.
Some of the challenges the two startups hope to overcome through the new partnership include “providing a safe and seamless remittance experience” for immigrants from Zimbabwe. Through this working arrangement, the startups also hope to manage or overcome the problem of high shipping fees, limited access to formal financial services, and identity verification issues.
Limited access to financial services
Mapunga, meanwhile, spoke about the virtues of blockchain, as well as the importance of implementing 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,” insisted the CEO of Flex ID.
Although South Africa is among the largest remittance senders in sub-Saharan Africa, costs between 5% and 20% to send money to Zimbabwe 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 expands options for immigrants from Zimbabwe and will likely help lower the average cost of remittances.
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