Paypite: Crypto-Currencies for Money Transfers

Paypite: Crypto-Currencies for Money Transfers

Photo credits: Paypite

FACTS

  • The Paris-based FinTech Paypite, behind a virtual currency for simplifying exchanges between French-speaking users, unveils a low-cost mobile wallet for money transfers.
  • Goals: streamline money transfers between players in French-speaking countries.
  • Targets: SMEs and individual customers in underbanked countries.
  • The tool called Yes Transfer relies on the Ethereum Blockchain and a new virtual currency named “le Yes”.
  • Pegged to a fiat currency (Euro), Yes is a so-called stable coin, unlike typical highly volatile crypto-assets (such as Bitcoin).
  • Business Model: the FinTech charges a 2% fee for each transfer. The recipient is also charged a 2% commission if withdrawing the amount from his Yes account (1% charged by Paypite and 1% by the partner mobile carrier).
  • How it works
    • The SME or individual customer visits the dedicated platform to set up an account
    • The start-up verifies the user’s identity (proof of ID, ID picture and proof of residence)
    • The user then transfers to Paypite the amount he intends to send to the recipient (in Euros)
    • Once this transfer conducted, the user’s account is credited using “le Yes”. He may then send the amount to the recipient’s Yes Transfer account
    • From the mobile app, the recipient visits a small stock exchange interface meant to link Yes holders and buyers
    • In order to retrieve the amount, the recipient visits a mobile money agent (operated by a local mobile carrier).

CHALLENGES

  • The FinTech would intend to address issues to do with cross-border transfers (complex procedures, high transaction fees and time-consuming processes). They aim at drastically capping transfer costs.
  • Actual value addition. Paypite also wants to feature associated services to make day-to-day exchanges easier, including a credit card, money transfer services, mobile-based in-store and P2P transactions. Also, they expand their target through addressing SMEs’ needs when having to pay their providers in countries they operate.
  • Expansion project. Paypite is already present in France, Senegal, Côte d’Ivoire or Madagascar. They may enter Congo Republic, Cameroun and Haiti.

MARKET PERSPECTIVE

  • In February 2018, the French multi-entrepreneur Vincent Jacques launched a cryptocurrency for French-speaking people. The project is successful in several countries.
  • Paypite isn’t the only FinTech aiming for this market. PayTrip, another French start-up proposes an instant money transfer system for European residents from African origin.

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