Afrex democratizes wealth creation by facilitating global money transfers

Have you ever wanted to transfer money to someone in another country but seeing the transfer fees made you change your mind? In this modern world where humans are more connected than ever, millions of people have reason to send or receive money to or from a foreign country. These transactions often take a few days, and by the time the money reaches the recipient, transfer fees have eaten away at its value.

In 2020 Sub-Saharan African countries received remittances valued at $42 billion. This amount has increased to $49 billion in 2021 despite the COVID-19 pandemic. Remittances to low- and middle-income countries are expected to increase by 4.2% in 2022 to reach $630 billion in total, a figure higher than foreign direct investment and official aid flows.

In Nigeria, the first beneficiary of these funds, this increase is due in part to the adoption of banking policies that facilitate and encourage money transfers. Also rising food prices over the past 5 years has inevitably led to a decrease in monetary value, i.e. it takes more money now to buy the same things. Sending money to African countries can cost an exorbitant sum.

According data availableSub-Saharan Africa has the highest average cost for sending remittances with 7.8% fee on every $200 and currency conversion, and transfer fees are up to 6% of the amount total sent, worldwide.

Modern technological innovations and platforms have emerged to solve these transfer problems. Blockchain technology and other fintech innovations have created a world of multiple currencies and also faster and cheaper ways to transfer money.

One of these fintech innovations is Afrex, the multi-currency money transfer app. Founded by Tope Alabi and John Obirije in 2019, Afrex is a fintech startup that facilitates money transfers in any currency, from anywhere in the world.

With Afrex, users can deposit money into one account and transactions are completed within minutes either to a direct bank account or to another Afrex account. It offers 25% cheaper rates than Western Union or MoneyGram, and users also have the ability to send and receive cryptocurrency. While international transfer platforms are tied to traditional banking systems which attract huge third party fees and delays, Afrex has built a cheaper system by refereeing cryptography rate. He buys cryptos in one country and resells them in another for a better exchange rate.

Afrex is a blockchain-based fintech platform built on stablecoins. This means that funds deposited in Afrex are converted into dollar-backed stablecoins. This makes transactions cheaper and faster.

Blockchain technology has opened up a world of inventions. With its decentralized system, access and control of technology is democratized. This means that with technology creating ease and becoming the future, blockchain technology makes that same ease and access to the future possible for everyone. Afrex uses the decentralized system of blockchain technology to democratize wealth creation and create access to resources for all equally.

An immigrant to the United States himself, Tope Alabi witnessed first-hand the problems with processing cross-border money transfers and he set out to solve this problem with blockchain technology. As intra-African migration continues growing upwith 21 million documented immigrant Africans living in another African country, Afrex facilitates intra-African money transfer by solving access and cost issues.

Afrex is emerging at a time of financial technology boom on the African continent. African fintechs have so far raised $700.14 million in funding this year alone and are key drivers of financial inclusion for Africa’s unbanked population.

Investment in crypto is highest in African and Asian countries around the world, and 42% of Nigerians have a crypto investment. With low transaction fees and easy, safer and faster access, Afrex reaches the most inaccessible communities and creates financial inclusion for Africa’s unbanked population.

Afrex facilitates African intra-diaspora money transfers and aid as well as international transfers. Diaspora remittances to low-income countries are in the billions, making countries dependent on these remittances. A large percentage of foreign remittances entering Africa are destined to help families. Afrex facilitates intercontinental money transfers and thus facilitates aid delivery and improves the economy as a whole.

Afrex has grown rapidly since its inception. Initially operating in Nigeria and the United States, they have since expanded to Ghana, Uganda, Kenya, United Kingdom and Canada. Through a partnership with Visa, Afrex now offers users credit and debit card transactions.

Afrex received $10 million funding in April, led by Sequoia Capital China and Dragonfly Capital, and this funding is in addition to the $1.3 million it raised earlier in 2021 bringing its full funding so far at $11.3 million.

They grew their user base by 500% in just 6 months and now process over $5 million in monthly transfers.

Afrex is expanding across Africa and the world and making financial transactions more inclusive for Africans. Download the app here to try a free transfer today.

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