BitPesa has been officially launched in Kenya, allowing Kenyans in the diaspora to remit money back to the country using Bitcoin technology leveraging on mobile money.
HumanIPO broke the news in December last year BitPesa – founded by microfinance expert Duncan Goldie-Scot and led by chief executive officer (CEO) Elizabeth Rossiello – was in discussions with multiple banks and network operators in Kenya over partnerships that could allow the mass introduction of Bitcoin remittance payments.
The company is entering the market looking to offer a cheaper alternative for money transfers in Africa than currently in existence, with users using the virtually free Bitcoin technology to remit money and charged three per cent per transaction.
Amy Ludlum, head of trading and risk at BitPesa, told HumanIPO the company has been using a third party to put funds on to M-Pesa and send it to people’s mobile phones.
“Mobile money has allowed us to launch as quickly as we have, it is a brilliant technology, we love it, we use it to do everything. We hardly ever touch cash anymore,” she said.
Ludlum said since the startup has been piloting in Kenya the response has been positive and users can use Airtel Money, Orange,YU and M-pesa.
“So far so good, we didn’t advertise our launch very much, we just got a handful of BitPesa testers to see if the platform worked. But we have got lot of people coming onto the site and starting using it even without telling anyone,” she said.
The company is eyeing Uganda, Tanzania and Rwanda as part of its expansion strategy and already has some people in those countries spreading the word.
“We consider ourselves a Kenyan company, but we are also an East African company, we know there is some interest in Uganda, Tanzania and Rwanda,” Ludlum said.
BitPesa said it is not worried about competition, as it has a different model whereby it does not hold the money like its counterparts but rather sends it as soon as it comes in, which has helped it gain trust amongst customers.
