Paystack, the leading online payment platform in Africa, has announced that it has obtained the required regulatory approvals to launch its services in three new markets: Egypt, Rwanda and Côte d’Ivoire. This is a major milestone for the company, which aims to connect millions of African businesses with global customers and enable them to accept payments from anywhere in the world.
Paystack was founded in 2015 by Shola Akinlade and Ezra Olubi, two Nigerian software engineers who wanted to solve the problem of online payments in Africa. They built a simple and secure API that allows merchants to integrate various payment methods, such as cards, bank transfers, mobile money and USSD, into their websites and apps. Since then, Paystack has grown rapidly, serving over 60,000 businesses across Nigeria, Ghana and South Africa, and processing over 50% of all online transactions in Nigeria.
In October 2020, Paystack made headlines when it was acquired by Stripe, the global leader in online payments, for a reported $200 million. The deal was the largest acquisition of a startup from Africa and marked Stripe’s entry into the continent. Stripe said it would support Paystack’s expansion across Africa and leverage its technology to accelerate the development of the internet economy in the region.
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Now, Paystack is ready to enter three more African countries: Egypt, Rwanda and Côte d’Ivoire. These markets have a combined population of over 160 million people and a growing demand for online commerce and digital services. Paystack said it has been working closely with the local regulators and partners to ensure compliance with the laws and regulations of each country. The company also said it has hired teams on the ground to provide support and guidance to its new customers.
Paystack’s co-founder and CEO, Shola Akinlade, said: “We are thrilled to bring Paystack’s innovative payment solutions to these vibrant and fast-growing markets. We believe that by enabling seamless and secure online payments, we can unlock new opportunities for millions of African businesses and consumers. We are grateful to our regulators, partners and customers for their support and trust in our vision.”
Paystack’s expansion is part of its broader strategy to become the payment platform of choice for every online business in Africa. The company said it plans to launch in more countries in the near future and continue to improve its product offerings and customer experience. Paystack also said it remains committed to its mission of powering growth for incredible businesses across the continent.
Dubai Financial Services Authority (DFSA) approves use of $XRP and $TON for Dubai International Financial Centre (DIFC)
The Dubai Financial Services Authority (DFSA), the regulatory body for the Dubai International Financial Centre (DIFC), has announced that it has approved the use of two cryptocurrencies, $XRP and $TON, for transactions within the DIFC. This is a major milestone for the DIFC, which aims to become a leading global hub for fintech and blockchain innovation.
$XRP is the native currency of the Ripple network, a decentralized platform for cross-border payments that uses blockchain technology to reduce costs and increase speed and transparency. $TON is the token of the Telegram Open Network, a scalable and secure blockchain platform that supports smart contracts, decentralized applications and file storage.
The DFSA said that it has conducted a thorough assessment of the technical, legal and regulatory aspects of these two cryptocurrencies, and has concluded that they meet the criteria for being classified as virtual assets under the DFSA’s framework. The DFSA also said that it has established appropriate safeguards and controls to ensure the protection of investors and the integrity of the DIFC’s financial system.
The approval of $XRP and $TON means that DIFC-based entities can now use these cryptocurrencies for various purposes, such as remittances, trade finance, tokenization and digital asset custody. The DFSA said that this will enhance the efficiency, diversity and competitiveness of the DIFC’s financial services sector, and will attract more fintech and blockchain companies to establish their presence in the DIFC.
The DFSA also said that it will continue to monitor the developments and innovations in the crypto space, and will collaborate with other regulators and stakeholders to foster a conducive and supportive environment for the growth of the digital economy in Dubai and the region.
St. Galler Kantonalbank to offer Bitcoin and Ethereum custody services
In a major development for the crypto industry, Swiss Bank St. Galler Kantonalbank (SGKB) has announced that it will start offering Bitcoin and Ethereum custody services to its clients. This makes SGKB the first state-backed bank in Switzerland to enter the crypto space.
Switzerland is known for its banking sector, which offers high levels of privacy, security and stability to its clients. However, in recent years, the traditional banking system has faced increasing competition from the emerging crypto industry, which promises faster, cheaper and more transparent transactions.
SGKB said that it decided to launch the new service in response to the growing demand from its customers, who are interested in diversifying their portfolios with digital assets. The bank will provide secure storage and trading of Bitcoin and Ethereum, as well as advisory services for crypto investors.
The bank has partnered with a Swiss fintech company, Crypto Finance AG, to provide the technical infrastructure and regulatory compliance for the crypto service. Crypto Finance AG is a licensed securities firm that offers crypto asset management, brokerage, and storage solutions.
SGKB said that it aims to offer a comprehensive and convenient service for its clients, who will be able to access their crypto assets through their existing e-banking platform. The bank also said that it will apply the same high standards of security, quality, and transparency that it uses for its traditional banking services.
The bank’s CEO, Roland Ledergerber, said that the launch of the crypto service is a strategic move that reflects the bank’s innovation and digitalization strategy. He said that the bank wants to position itself as a leader in the digital asset space and offer its clients the best possible solutions.
The bank’s head of digital banking, Felix Kunz, said that the crypto service is a natural extension of the bank’s existing offerings, which include online trading, robo-advisory, and e-mortgage. He said that the bank sees crypto assets as an attractive investment opportunity and a way to diversify its product range.
The bank’s announcement comes at a time when Switzerland is emerging as a global hub for crypto and blockchain innovation. The country has a supportive regulatory environment and a vibrant ecosystem of startups, investors, and institutions that are active in the crypto space.
SGKB is not the only Swiss bank that is exploring the crypto market. Earlier this year, another state-backed bank, Basler Kantonalbank (BKB), said that it was working on launching a crypto service in collaboration with Bank Cler, its subsidiary. BKB said that it plans to offer Bitcoin trading and custody services to its clients by 2024.
some Swiss banks have decided to embrace crypto and offer services related to digital assets, such as custody, trading and lending. This is a significant development, as it shows that crypto is becoming more mainstream and accepted by the financial establishment.
One of the pioneers in this field is SEBA Bank, which was founded in 2018 and obtained a banking and securities dealer license from the Swiss Financial Market Supervisory Authority (FINMA) in 2019. SEBA Bank aims to bridge the gap between the crypto and the traditional financial world, by offering a range of products and services for both individual and institutional clients.
SEBA Bank allows its customers to buy, sell, store and transfer various cryptocurrencies, such as Bitcoin, Ethereum, Litecoin and Stellar. It also offers a digital wallet app, a debit card that can be used to pay with crypto at over 42 million merchants worldwide, and a crypto lending platform that enables users to borrow or lend crypto against fiat or other crypto assets.
Another Swiss bank that has embraced crypto is Sygnum Bank, which was also founded in 2018 and received a banking and securities dealer license from FINMA in 2019. Sygnum Bank claims to be the world’s first digital asset bank and offers a similar range of services as SEBA Bank, such as custody, trading and lending of cryptocurrencies.
Sygnum Bank also supports tokenization, which is the process of converting real-world assets into digital tokens that can be traded on blockchain platforms. Sygnum Bank has partnered with various companies to tokenize assets such as art, real estate, diamonds and wine. It also plans to launch its own digital Swiss franc (DCHF), which will be backed by fiat currency and enable instant settlement of transactions.
Both SEBA Bank and Sygnum Bank are examples of how Swiss banks are adapting to the changing landscape of the financial industry and embracing the opportunities offered by crypto. By doing so, they are not only catering to the growing demand for crypto services from their customers, but also positioning themselves as innovators and leaders in the digital asset space.
The Swiss banking sector is also facing competition from foreign players that are entering the crypto space. In August, Germany’s largest bank, Deutsche Bank, announced that it had joined forces with a New York-based fintech company, Fidelity National Information Services (FIS), to launch a crypto custody platform. The platform will target institutional investors such as hedge funds, family offices, and asset managers.
The growing interest and involvement of banks in the crypto industry is a sign of the increasing maturity and acceptance of digital assets as a legitimate asset class. It also shows that banks are adapting to the changing needs and preferences of their customers, who are looking for more innovative and diverse financial services.