Japan’s Insurer Sompo Holdings to Leverage BitPesa’s Blockchain for Cross-Border Transactions
Sompo Holdings, one of Japan’s top three insurers will use BitPesa’s blockchain technology to streamline remittance and payment processes.
Japan’s leading insurer Sompo Holdings has reached an agreement with BitPesa in a move that would allow Sompo to leverage blockchain solutions to transform cross-border transactions, Forbes reports, citing an announcement from Sompo. As one of the three largest insurers in Japan, Sompo is keen to use BitPesa’s distributed ledger technology (DLT) to support global trade and the digitization of financial services.
Sompo and BitPesa aim to create a digital platform that would allow the seamless movement of goods and value around the globe by leveraging virtual currency. The two companies seek to promote a society in which state borders become less relevant for international payments. Eventually, the firms hope to transform the way entities, both companies and individuals, transfer funds across borders.
BitPesa is a Kenya-based digital currency exchange and payments services operator. It was founded in 2013 by Elizabeth Rossiello, its current CEO, and has offices in Nairobi, London, Luxembourg, Lagos, Dakar, and Madrid.
Sompo Holdings bases its blockchain plans on the premise that international remittance and cross-border payments have become indispensable elements of the current age of people, information, goods, and services moving across state borders. Despite the increasing globalization, remittance procedures are still challenging because of the fees, intermediaries and bureaucracy. The implementation of blockchain is expected to transform remittance operations.
“We are very excited about our partnership with BitPesa. Initially, I did not think that our paths would ever cross. However, as I gain a deeper understanding of the cross-border money transfer environment, especially in Africa, I see how BitPesa’s mission will completely revolutionize this industry. We are looking forward to tackling this challenge together with BitPesa.”
– Takehiko Eguchi, General Manager of Sompo Holdings and Sompo Digital Ventures
BitPesa is currently expanding its infrastructure in Africa, Europe, and the Middle East. Sompo Holdings was impressed with the company’s growth and hopes to use virtual currencies to streamline payment processes and cut fees.
“We focus on giving our customers the ability to transact between currencies. Now, we are welcoming other partners from around the world who want access to these markets. Sompo Holdings is one of the largest Japanese insurance companies and they are looking for new markets and new opportunities. We can give them immediate access to these markets. For all the financial services they offer, we can provide all the cross currency transactions to remove any currency risk.”
– BitPesa CEO Elizabeth Rossiello
Besides reaching a partnership with BitPesa, Sompo also announced an investment in the company. Rossiello revealed that the fintech firm would use the funds to scale its business and expand its infrastructure in Africa and the Middle East. Earlier, BitPesa secured a $10 million investment from Greycroft Partners and other venture capital firms, but Sompo’s status will allow it to boost its credibility on the international arena.
In September of this year, it was reported that BitPesa had partnered with SBI Remit, a leading Japanese money transfer service, to enable about 500,000 of SBI’s clients to send funds to Africa through Bitcoin’s blockchain. Thus, BitPesa helps SBI Remit avoid complex transfer processes in which banks have to convert yen into USD or euro and then into African currencies. The fintech firm is able to handle these operations in only one hour.
However, the deal with Sompo Holdings is a bit different, Rossiello noted:
“While we did something similar with SBI Remit, our alliance with Sompo is less about sending money to other people, and more about financial transactions and services and supply flows. SBI Remit focuses on small businesses and person-to-person transfers, while Sompo is disrupting financial services.”