Kora, a Nigerian-based provider of pan-African payments, has developed a USD card-acquiring capacity in Africa as part of its revamped global strategy. The product's promise that merchants using its platform can receive payments in US dollars would expand Africa's participation in international trade.
The startup, which launched in 2018, has sought to make it easier for Africans to make payments by utilising cross-border payment systems.
These services simplify and reduce the cost of moving money into and out of Africa.
The company, based in Canada, began as a platform for Africans living abroad to transmit money to beneficiaries in Africa.
So far, the company has created a payment infrastructure that allows domestic and foreign businesses to make payments into and out of Africa.
Businesses can take payments from clients utilising Kora's Payment service, which accepts a range of popular payment methods like cards, bank transfers, and mobile money.
Read also: Kenya clears Kora of Money Laundering And Card Fraud Allegations
USD-card acquiring and Kora merchants
The USD card-acquiring service, which complements Kora's existing currency offerings of NGN bank account issuing, pay-ins, payouts, and cross-border settlement across various nations, is stated in the statement.
Sandra Israel-Ovirih, Kora's Head of Product, said, "Incorporating USD card payments has been a priority for some time now." We recognise that many firms operate in a worldwide economy and need a seamless payment system to manage cross-border transactions. "This will transform the game for African companies marketing globally."
They intend to enhance merchant experiences and assist them in becoming truly global enterprises through the introduction of USD card-acquiring, thereby expanding Africa's involvement in international trade.
The USD card-acquiring tool is the latest in the company's merchant-facing activities for 2023. The company renamed itself "Kora," switched its domain name to www.korahq.com, and established a new corporate website earlier this year.
"We want the retailers we serve to scale globally. Kora CEO Dickson Nsofor remarked, "Giving them the option to accept dollars is a major milestone."
"The focus is on Africa. But despite an increase in Africa’s participation in global trade, our contribution is still only around 3%. Giving African businesses the ability to accept global payments will accelerate Africa’s contribution to global trade.
The CEO also announced that Kora would develop a multi-currency bank account product intended to allow merchant clients to access banking solutions in EUR, GBP, and USD through the platform.
"Our next step is developing a multi-currency bank account product that lets our merchants access banking solutions in EUR, GBP, and USD via the Kora platform
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Africa's digital payments: Kora and others
Africa's e-payments business is growing due to potential platforms' new activities. Because of its quick market growth, digital payments in other parts of the world are catching up to it.
E-commerce revenue in Africa reached $24 billion in 2021 and is expected to reach $37 billion by 2024. In the past several years, Africa has seen the growth of spectacular e-payment platforms, some of which have attracted foreign investors.
Many payment systems allow Nigerians to purchase and sell globally despite CBN restrictions. Virtual accounts, cards, etc.
Users can send and receive payments in foreign currencies through a number of payment platforms, including Flutterwave, Fincra, Payoneer, ChipperCash, PayDay, Grey, and Leatherback. The most recent addition to Kora would greatly help retailers because it would allow them to build really global companies and hasten Africa's integration into the world of commerce.
