Claiming to provide free, fast and easy Bitcoin payment services, BitPesa, the Kenyan Bitcoin payment services provider, is all set to become a game changer in the hot remittance market in the developing world. The reports claim that remittances to Kenya hit a high of $1.3 billion last year; there is also a lot of money that is paid to payment processors.
However, with BitPesa at service wherein customers don’t need to pay any processing fee, they can save a lot of money which they would otherwise be paying if they were using other payment processing services. To cash huge remittances market, BitPesa thinks that Bitcoin is the right option.
Coming at a time when a survey by the Central Bank of Kenya says that remittances increased by 8 percent from US $102.4 million in Feb 2013 to US $110.42 million in Feb 2014, BitPesa thinks it will help it and customers both to have easy and fast as well as free of cost Bitcoin payment processing.
A lot of Kenyans working abroad prefer to use the services from traditional payment methods; however, with emergence of BitPesa, they can benefit to great extent. Most of the Kenyans that send remittances are settled in North America that accounts for close to half of the total amount.
Europe accounts for around 27 percent and rest of the world around 23 percent when it comes to remittances. According to the company sources BitPesa whose beta version has been released to the market, offers the cheapest option of transferring money into the country when compared with other payment processing services providers.
The Company Charges a 3% margin on the Bitcoin to Kenyan Shilling exchange rate
Admittedly, BitPesa accepts Bitcoin from the sender and exchanges it for Kenyan Shillings which can later be transferred into existing Kenyan mobile money wallets such as M-Pesa, Orange, Airtel or Yu. The most successful mobile money wallet comes from M-Pesa which uses a national ID card or passport to send and receive money.
Though there are no charges for transferring money by BitPesa, it charges a 3% margin on the Bitcoin to Kenyan Shilling exchange rate. Thus, it is not just cheap but easy as well for thousands of customers who have been paying lot more than this to their respective payment processing companies.
Using the payment processing services from BitPesa, customers receive money in a matter of minutes and like all Bitcoin transactions, the transfer cannot be reversed; thus, they are safe and secure as well.
To contact the reporter of this story: Deepak Tiwari at firstname.lastname@example.org