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.