LocalCryptos (formerly known as LocalEthereum) has opened its platform to more African users by adding Chipper Cash, Airtel Money, MTN Mobile Money, and EcoCash as payment methods.
This new update will allow cryptocurrency users in Africa to buy and sell Bitcoin (BTC) and Ethereum (ETH) using mobile payments, the most popular form of payments on the continent.
In an interview with BlockNewsAfrica late last year, LocalCryptos CEO Micheal Foster mentioned the platform’s intention to expand into the African continent.
He said:
In 2020, we’re especially focusing on growing our African communities. We’re very interested in bringing LocalCryptos to new users in Kenya, Nigeria, Ghana, and Zimbabwe. Africa is on the road to becoming a major blockchain hub, with many governments and communities embracing the technology, and we want to be a part of it.
LocalCryptos’ first action to expand into the African market in 2020 is by adding these mobile payment methods. Mobile Money is trendy in Africa. In eight countries on the continent, 1 out of 5 adults make payments via mobile money, according to the World Bank.
As of 2018, $1.3 billion was processed in mobile money transactions daily, according to research published by GSMA. Also, over 50% of the adult population in Ghana, Ivory Coast, Benin, and Senegal are active mobile money users.
The mobile money user base is enormous and continues to grow on the continent, making it an essential fiat gateway for onboarding new cryptocurrency users.
About the new payment methods:
Chipper Cash is a cross-border mobile transfer application in popular in East Africa. The platform is available in Kenya, Rwanda, Tanzania, Uganda, Nigeria, and Ghana.
MTN Mobile Money, MTN’s mobile payment system is a USSD based mobile money service. It is very popular in Ghana and is available in other countries.
Airtel Money also operated like MTN Mobile Money and is available in several African countries. Further, the payment system allows domestic and international transfers.
Eco Cash is a mobile to mobile money transfer platform in Zimbabwe. Users can send transactions over USSD to other people via their mobile number.
EcoCash, Airtel Money, MTN Mobile Money, and Chipper Cash join Mpesa as the options available for traders who want to use mobile money.
LocalCryptos Sets Eyes on Africa
Discussing the new development with BlockNewsAfrica. Micheal Foster, CEO of LocalCryptos mentioned that he believes Africa will lead cryptocurreny adoption.
“In 2020, Africa is a major focus for LocalCryptos.”
We believe Africa could lead the world in crypto adoption. Africa has the perfect ingredients to reach mass adoption. (We list these ingredients in our blog post)
M-Pesa began the digital payments revolution in Africa only 13 years ago. Today, in 8 African countries, more than 1 in 5 adults rely solely on mobile money to pay their bills. The next stage in the African payments revolution will be crypto.
We’re adding support for African mobile money services today to help boost adoption. Now everybody in Africa with mobile money and an internet connection can buy and sell crypto. LocalCryptos is now available as a crypto on/off-ramp across the continent.”
Also, Foster made projections that mobile money will eventually be replaced by cryptocurrency payments.
In the future, we think digital currency wallets will replace mobile money services. At first, the two will be intertwined — mobile money services will offer crypto-related products on the side — but eventually crypto will take over.
Right now, we’re talking to our African users every day. We’re listening to the unique problems that African traders face, and we’re working on custom-made solutions.
We’ve noticed that many crypto traders in Africa have felt excluded by other P2P platforms, and we’re not going to let that happen here. We look forward to giving these stranded traders a new home where their problems won’t be ignored.
Africa currently makes up less than 10% of LocalCryptos activity. Kenya currently leads transaction volume from Africa and is followed by Nigeria, Egypt, Uganda, and South Africa, respectively.
Local Cryptos is hoping this move will increase peer-to-peer trading volume in all African countries, particularly Kenya, Nigeria, Ghana, and Zimbabwe.
