Ripple is partnering with payments fintech Onafriq, formerly known as MFS Africa, to facilitate digital asset-enabled cross-border payments connecting Africa to several new markets, such as the Gulf Cooperation Council (GCC), the UK, and Australia.
The collaboration is expected to introduce quicker, more effective, and economical global money transfers to Africa, with the potential to expedite financial inclusion throughout the continent.
As part of the deal, Onafriq will leverage Ripple Payments – Ripple’s crypto-enabled payments technology – to establish three new payment corridors between Africa and the rest of the world.
This would allow customers of PayAngel in the UK, Pyypl in the GCC, and Zazi Transfer in Australia to conduct speedy and cost-effective remittance and business payments to recipients in 27 countries across Onafriq’s pan-African network, which include – Botswana, Egypt, Morocco, South Africa, Tanzania, Togo, Uganda, Zambia, and Zimbabwe, among others.
Onafriq aims to eliminate the traditional challenges linked to cross-border payments. This includes extended processing times, unreliable transactions, and high expenses. This collaboration is introducing quicker, more effective, and economical global money transfers to Africa, with the potential to expedite financial inclusion throughout the continent.
Ripple’s senior vice president of global customer success, Aaron Sears, stated,
“For a number of years, Ripple has supported crypto-enabled, cross-border payments to individuals and businesses, and we are particularly excited to expand the reach of our solution into Africa thanks to our Onfriq partnership. Connecting our partners PayAngel, Pyppl and Zazi Transfer with Onafriq over Ripple Payments will bring the benefits of faster and more cost-effective cross-border payments to individuals seeking to send money into Africa from around the globe.”
Onafriq, previously operating under the name MFS Africa until early November, rebranded due to its acquisition of Global Technology Partners, a U.S. mobile payment software developer, in June 2022. The company also entered into a partnership with Western Union for cross-border transactions earlier this year.
Partnerships, IPO Rumors and More
In the recent weeks, Ripple has scored important deals. The blockchain company recently teamed up with Kuwait Finance House (KFH) to introduce immediate cross-border payment services. KFH commended Ripple’s proficiency in this field, generating optimism that this partnership would bring economic advantages to the Middle Eastern nation.
The National Bank of Georgia (NBG) selected Ripple to oversee its central bank digital currency (CBDC) initiatives earlier this month. Additionally, it also extended its presence into the Middle East, with the Dubai Financial Services Authority (DFSA) granting approval for the use of XRP within the Dubai International Financial Centre (DIFC).
As for the possibility of going public, it has been reported that Ripple CEO Brad Garlinghouse has contemplated the idea of an initial public offering (IPO) outside of the United States. However, there is no exact schedule provided for the move. Experts argue that, due to the ongoing legal dispute with the SEC, such a step is currently unfeasible.