Cryptocurrency adoption is growing rapidly in Africa, as more people are looking for alternative ways to access and use money. However, one of the main challenges that crypto users face is the lack of convenient and cost-effective ways to convert their digital assets into fiat currency and vice versa.
That’s why Visa, the global leader in digital payments, and Transak, a UK-based fintech company that provides fiat on/off ramps for crypto platforms, have announced a strategic partnership to streamline cryptocurrency offramping for African users.
The partnership will enable Transak to integrate Visa Direct, Visa’s real-time push payments platform, into its service, allowing users to send money from their crypto wallets to their bank accounts or Visa cards in minutes. This will significantly reduce the friction and fees associated with crypto-to-fiat conversions, as well as enhance the security and transparency of the transactions.
Transak currently supports over 40 African countries, including Nigeria, Kenya, South Africa, Ghana, and Uganda. The company works with local payment methods, such as mobile money, bank transfers, and cash deposits, to facilitate fiat-to-crypto and crypto-to-fiat transactions. By leveraging Visa Direct, Transak will be able to offer a faster and more seamless experience for its users across the continent.
Sam Hamilton, Senior Vice President and Global Head of Crypto at Visa, said: “We are excited to partner with Transak to bring the benefits of Visa Direct to crypto users in Africa. Visa is committed to supporting the growth and innovation of the crypto industry, and we believe that enabling easy and secure crypto-to-fiat conversions is a key step towards mainstream adoption. With Visa Direct, Transak can offer its users a simple and convenient way to access and use their crypto funds anytime, anywhere.”
Tanveer Singh, Co-Founder and CEO of Transak, said: “We are thrilled to partner with Visa to enhance our service and offer a better offramping solution for our users in Africa. Transak’s mission is to make crypto accessible and usable for everyone, and we believe that integrating Visa Direct will help us achieve that goal.
Visa Direct will enable us to provide faster, cheaper, and more reliable crypto-to-fiat transfers, which will ultimately improve the user experience and drive more adoption of crypto in Africa.”
Africa is a continent with huge potential for crypto adoption, due to its young and tech-savvy population, high mobile penetration, and widespread use of mobile money services. However, Africa also faces many challenges that hinder the growth of the crypto ecosystem, such as lack of access to banking services, high fees and delays for cross-border transactions, and regulatory uncertainty.
This is where Visa Direct can help. By integrating Visa Direct with crypto platforms, such as exchanges, wallets, and payment processors, crypto users in Africa can enjoy the following benefits:
Faster and cheaper access to fiat: Visa Direct can enable crypto users to cash out their crypto assets to their local currency in minutes, rather than hours or days. This can reduce the risk of price volatility and provide liquidity for their daily needs. Moreover, Visa Direct can offer lower fees than traditional methods of fiat withdrawal, such as bank transfers or mobile money.
Easier and safer cross-border payments: Visa Direct can also facilitate cross-border payments for crypto users in Africa, whether they are sending or receiving money from other countries. For example, a crypto user in Nigeria can send money to a family member in Ghana using Visa Direct, without having to convert their crypto to naira and then to cedi.
This can save time and money, as well as avoid the hassle of dealing with multiple intermediaries and currencies. Additionally, Visa Direct can provide more security and transparency for cross-border payments, as the sender and the recipient can track the status of the transaction and receive confirmation when it is completed.
Greater inclusion and innovation: Finally, Visa Direct can help crypto users in Africa to access more opportunities and services that are enabled by crypto technology. For instance, a crypto user in Kenya can use Visa Direct to pay for goods and services online or offline using their Visa card, without having to rely on a bank account or a mobile money provider. This can increase their financial inclusion and empowerment, as well as foster innovation and entrepreneurship in the crypto space.
Visa Direct is not only a service that can benefit crypto users in Africa, but also a strategic partner that can support the development and growth of the crypto ecosystem in the continent. By working together with crypto platforms and stakeholders, Visa Direct can help to bridge the gap between crypto and fiat and create a more inclusive and efficient financial system for everyone.
