Verto, a London-based fintech company, has partnered with the United Bank of Africa (UBA) to launch a cross-border payment platform in East Africa, starting with Kenya. The partnership will provide Kenyan businesses with a platform to send, receive, and exchange money in over 190 countries. Verto processed over $3 billion in transactions last year and expects to triple that volume within the next 12 months.
The partnership is expected to boost financial inclusion in East Africa by providing businesses with access to affordable and reliable cross-border payment solutions. Verto's platform will also help businesses to save money on transaction fees and foreign exchange costs. Verto primarily targets businesses in the travel & tourism, education, telecommunications, and import/export industries.
According to Business Insider Africa, Kenya has been experiencing significant growth in the fintech sector. This tech adoption has played a transformative role in financial inclusion, allowing millions of Kenyans to access basic financial services through their mobile phones. Moreover, Kenya stands as one of Africa’s leading tech hubs. Indeed, its adoption of digital financial services, particularly with the success of the mobile money platform M-Pesa.
M-Pesa, a mobile phone-based money transfer service launched in Kenya in 2007, has revolutionized access to financial services for millions of Africans. Prior to M-Pesa, many Africans, particularly those in rural areas, lacked access to traditional banking services. M-Pesa has changed this by providing a simple and affordable way to send and receive money, pay bills, and save money.
M-Pesa has made it possible for millions of Africans to access financial services for the first time. In Kenya, for example, the number of adults with access to financial services has increased from 26% in 2006 to 82% in 2016. Moreover, M-Pesa has helped to reduce poverty by providing people with the tools they need to save money, start businesses, and invest in their futures. A study by the World Bank found that M-Pesa has lifted 2% of Kenyan households out of poverty.
As a matter of fact, M-Pesa's success is due to a number of factors, including its simplicity, affordability, and ubiquity. M-Pesa is very easy to use, even for people who have never used a mobile phone before. It is also very affordable, with transaction fees that are much lower than those of traditional banks. And M-Pesa is ubiquitous, with agents available in almost every village in Kenya.
The partnership is a major development for Verto, which is expanding its operations into Africa. The company is already working with a number of businesses in Kenya, including MTN, Yoco, and Interswitch. UBA Bank is one of the largest banks in Africa, with a presence in 19 African countries. The bank is committed to supporting financial innovation and is partnering with a number of fintech companies to develop new products and services.
The partnership between Verto and UBA is also expected to have a positive impact on the overall financial landscape in Kenya. The partnership will help to promote competition and innovation in the financial sector, which will benefit consumers and businesses alike.