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Tag: Kotani Pay

  • Kotani Pay launches in East Africa, merging cash and crypto for seamless payments

    Kotani Pay launches in East Africa, merging cash and crypto for seamless payments

    Kotani Pay, a licensed on-ramp and off-ramp service provider, is expanding its operations into Rwanda and Uganda. This is a significant step in enhancing digital payment accessibility across East Africa. 

    The fintech company announced the expansion via X on Wednesday, October 30: “Exciting news! Kotani Pay has expanded its on-ramp and off-ramp services to Rwanda and Uganda! This expansion is a key step in our mission to onboard the next million users across Africa.”

    With this move, Kotani Pay will offer a simplified, compliant, on-ramp/off-ramp API to local fintechs and Web3 companies in Rwanda and Uganda, enabling them to expand their reach and participate in the global digital economy.

    Read also: EBANX Africa announces new Director for Africa development

    Bridging fiat and crypto for local fintechs

    Kotani Pay’s API allows fintech companies to bridge fiat and crypto assets, supporting seamless cash-in and cash-out services across both traditional and digital currencies. This technology addresses the growing demand for borderless, agile payment solutions, providing local fintechs with essential tools to enhance user access to digital financial services. 

    Through Kotani Pay’s integration, fintech businesses can connect local mobile wallets and bank transfers to blockchain-based financial platforms, facilitating swift and secure transactions.

    Felix Macharia, CEO of Kotani Pay, expressed enthusiasm about the expansion’s potential impact: “As we expand into Rwanda and Uganda, we are thrilled to support our clients in navigating these dynamic markets. This expansion empowers fintech and Web3 companies to enter with confidence, removing the payment and technical barriers that have previously hindered innovation.”

    Read also: Investors reconsider shares investment in Jumia stocks

    Expanding opportunities for Web3 companies

    This expansion also creates new possibilities for Web3 businesses in Rwanda and Uganda, providing a streamlined on-ramp/off-ramp API that makes it easier for platforms, wallets, DeFi projects, and crypto exchanges to operate locally. With Kotani Pay’s API, Web3 companies can offer users seamless access to Rwandan franc and Ugandan shilling, bridging the gap between digital assets and traditional currencies. This functionality supports Web3 firms in addressing the rising demand for digital assets and providing local users with greater flexibility.

    Kotani Pay’s growth underscores its vision of unifying payment systems across Africa, addressing the continent’s unique financial landscape with seamless and adaptable solutions. Currently integrated with 15 major blockchain protocols, the company is helping to bridge payment fragmentation by offering scalable solutions for fintech and Web3 businesses. This expansion into Rwanda and Uganda aligns with Kotani Pay’s mission of delivering accessible, transparent financial solutions, advancing financial inclusion, and supporting regional innovation.

    With the official launch of operations in Uganda and Rwanda, Kotani Pay strengthens its position as a leader in Africa’s fintech and Web3 sectors. It is driving East Africa’s digital finance ecosystem forward by providing essential on-ramp and off-ramp services, enabling local businesses and users to thrive in the global digital economy.

  • Kenya-based Kotani Pay secures $2 million for internet-free remittances

    Kenya-based Kotani Pay secures $2 million for internet-free remittances

    Kotani Pay, based in Kenya, has secured $2 million in pre-seed funds. DCG/Luno and Flori Ventures also put money in. P1 Ventures of San Francisco was the round’s leading investor. Kotani Pay wants to go to Nigeria, Rwanda, Senegal, and the Ivory Coast.

    Kotani Pay thinks that its solutions will make it easier for Africans to send money to other Africans. The company uses blockchain technology to let people in the diaspora send stablecoins to family and friends in Africa.

    Stablecoins are digital currencies that are tied to real currencies like the USD. With this method, the number of transactions and the time it takes to settle them are both lower.

    Kotani Pay links smart contracts on a blockchain platform to mobile money APIs for business-to-business use. The startup works with Yellowcard, DCG, Fonbank, Celo’s Valora, Mercy Corps, UNICEF Crypto Innovation Fund, and Stellar.

    The new company offers a way for businesses to change local coins into US dollars. This is for businesses, but people may be able to use it soon. Kotani Pay will make more products in addition to growing its market. Money ledger and reset.

    Kotani Pay is another interesting feature that lets digital assets be moved from phones to mobile money apps. This is done using unstructured supplementary service data. The startup’s feature lets people do business in places where there is no internet.

    Many African governments depend on money sent from other countries, which is often hard to do. Transfer costs are a big worry for payments from people living abroad. Kotani Pay helps solve the problem of people not having access to money by lowering transaction fees.

    Even while fintechs and internet and mobile phone usage are rising, millions of Africans cannot access basic financial services. Trust, high costs, a lack of a close bank branch, and more are hurdles to financial inclusion.

    Read also: TerraPay partners with M-PESA to facilitate cross-border remittances

    Kotani Pay thinks that cryptocurrencies will be regulated.

    Kotani Pay handled deals totaling $23 million. It’s interesting that the average deal size is $15,000. Crypto regulators often keep an eye on the site because it handles so many payments.

    According to CEO Felix Macharia, the central banks of Kotani Pay’s countries closely watch how it works. We follow the rules by working directly with local mobile money companies or using the charter of regulated partners. Macharia said that the central banks are interested in some of these uses and are working on creating central bank digital currencies.

    Some crypto companies have gotten bad reviews for breaking rules. Regulators have been looking at Binance and FTX. After the recent crackdown, investors are nervous about platforms.

    But Macharia is hopeful about Africa’s regulations. Botswana, Mauritius, and South Africa have all started issuing virtual asset service provider licences to control digital asset fintechs. The EU parliament also passed MiCa, which controls stablecoin producers, on- and off-ramps, and exchanges.

    More on Kotani pay

    KotaniPay is a middleware solution that allows customers to access blockchain and cryptocurrencies via USSD. USSD is the main mobile interface for most developing countries.

    Kotani Pay connects feature phones to blockchain networks using USSD. The solution doesn’t require internet access, phone storage, or learning curves.

    Kotani Pay offers a straightforward interface for crypto off-ramps without public and private keys. No internet connection is needed for this interface. This makes it easy to use on low-end smartphones and feature phones. Dialing *384*483# brings up a menu that lets people convert crypto to money effortlessly. Blockchain wallet funds are transferred to a mobile money wallet.