Paypite: Crypto-Currencies for Money Transfers

Photo credits: Paypite

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).

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.

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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