Blockchain Payments Platform BitPesa Acquires TransferZerobr>
Launched in 2013, BitPesa is an online payment platform that leverages blockchain settlements to significantly lower the cost and increase the speed of business payments to, from, and within sub-Saharan Africa. In January 2017, BitPesa closed a $2.5 million Series A funding round of $2 million USD to focus on becoming the largest licensed payment company in the UK, Europe, and Africa that offers real-time settlement at wholesale FX rates to frontier and emerging markets. In August 2017, It raised $10 million USD Series A funding led by Greycroft Partners.
Founded in May 2016 by Luis Cambronero, TransferZero is an international, online money transfer platform that specializes in sending money to consumers and companies in 200 countries using over 50 different currencies. It is the first FinTech company licensed by the Bank of Spain as an authorized payment institution. The company is a partner of Bankia, Spain’s third-largest bank, and has pioneered a number of innovations in the European FinTech sector.
Under the acquisition, TransferZero will continue to operate under the same brand name and all of its employees will stay with BitPesa. The headquarters will remain in Madrid. The acquisition will also enable TransferZero to plant deeper roots through UK and European licensing, bank accounts, and integrations.
“BitPesa has the support of top-tier institutional investors and a network that will help to bring TransferZero’s technology to the next level,” said Luis Cambronero, former CEO of TransferZero and current MD at BitPesa. “Traditionally, residents would have to go to an agency or office to send money in cash. We enable our customers to quickly send money across the globe for free. Our new smart phone application is designed for the next generation of users.”
“This is truly a partnership where the whole is greater than the sum of the parts, allowing BitPesa to solidify our leadership in this space,” said Elizabeth Rossiello, founder and CEO of BitPesa. “By bringing our regional and technological expertise together, we will further accelerate our month-to-month growth.”
In January 2017, SolarNow, a solar energy and financing solutions provider throughout East Africa, began using BitPesa’s service in order to handle overseas transactions as well as payments across their branches in Africa. The results obtained after using BitPesa show that its customer service proved superior, with 75% faster response time. The standard fees of $18-$20 per transaction were eliminated, thus saving the team significant costs on frequent small transactions.