According to Nikkei Asian Review, Sompo, a Japanese insurance company has come into a partnership with pan-African digital payment platform BTC Africa, or BitPesa.
BitPesa is an African startup working in the Bitcoin-space with its initial focus on crypto-enabled fiat remittances between the UK and Kenya. Sompo Holdings Inc. has reportedly invested around 570 million yen to procure a 10 percent stake in BitPesa.
Sompo has stated that the partnership is focused on the “digitalization of global remittance services.” They also stated that:
“Using BitPesa’s technology, developed through various experiments in remittances and settlements, we will extend our presence in the international remittance service market and consider the application of this technology to the insurance field.”
Sompo plans to use the BitPesa’s services to lower the costs and time taken for global transfer of value to reach a wider customer base, via BitPesa’s international remittance services. The release also talks about the increasing role of global remittances to economically facilitate the accelerated circulation of people, goods, data, and services worldwide.
BitPesa has already sealed venture capital financing from VC firms such as Draper VC, Digital Currency Group, and Pantera Capital. The service has used Bitcoin as a base currency to improve financial infrastructure between the developing world, Europe, and the UK.
Cryptocurrencies have played a major role in Africa by enabling ease of access and greater efficiency of transactions. Analysts have emphasized the importance of improving financial inclusion and remittance infrastructure for Africa,
Blockchain has already been seen as a means to improve the global insurance industry. One of the popular examples is the partnership of insurance firm Marsh and IBM.
Link to the full news article can be found here.