Two Zimbabwean start-ups, Flexid and Uhuru Wallet, recently launched a platform to provide digital ID and money transfer services to migrants living and working in South Africa The two startups are the first to launch a digital ID and money transfer service for immigrants living and working in South Africa. The two startups welcome what they describe as “the first cross-chain collaboration between two companies.”
leveraging the benefits of blockchain
Zimbabwean blockchain startup Flex ID and South Africa-based Whatsapp remittance platform Uhuru Wallet recently “combined their platform of digital identity and remittance services to millions of Zimbabweans living in South Africa immigrants in the country.”
In a statement shared with Bitcoin.com News, the two startups welcomed what they described as “the first cross-chain collaboration between two companies.” As revealed in the statement, Flex ID, co-founded by Victor Mapunga, utilizes the Algorand blockchain, while Uhuru Wallet is built on the Stellar blockchain.
Commenting on the joint solution of the two startups, Trust Jakarasi, CEO and founder of Uhuru Wallet, said.
We are excited to partner with FlexID to provide a more streamlined and secure money transfer experience for our customers. By combining our strengths in digital ID and remittance services, we can better serve the needs of Zimbabweans moving to South Africa.
Challenges the two startups hope to overcome with this new partnership include “providing a seamless and secure remittance experience” for Zimbabwean migrants. Through this partnership, the two companies also hope to address or overcome high remittance fees, limited access to legitimate financial services, and identity verification issues.
limited access to financial services
Mapunga, meanwhile, spoke of the virtues of blockchain and the importance of deploying the technology.
“Blockchain technology allows users to securely and efficiently verify their identity and access financial services wherever they are,” the FlexID CEO claimed.
South Africa ranks as the largest remittance country in sub-Saharan Africa, yet it costs between 5% and 20%to send money to Zimbabwe when using a registered money transfer agent. This forces many Zimbabwean migrants to use alternative methods such as courier services and unregistered remittance platforms.
The emergence of blockchain-based solutions will help to expand the options for Zimbabwean migrants and drive down the average cost of remittances.
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