IN an innovative move to counter the adverse effects of volatile local currencies in Africa, Ghanaian startup Hurupay is empowering businesses and individuals to make and receive payments using stablecoins.
Established earlier this year, Hurupay offers a crypto wallet that grants users access to stablecoins, cryptocurrencies designed to maintain a stable value, pegged to the US dollar at a 1:1 ratio. This pioneering platform is tailor-made to assist small and medium-sized enterprises (SMEs) and individuals in mitigating the challenges posed by depreciating local currencies in relation to the US dollar, providing a more secure and dependable means of payment.
For businesses, Hurupay streamlines the process of accepting stablecoin payments from customers by simply scanning QR codes. Additionally, it enables them to pay suppliers without incurring any transaction fees. Meanwhile, individuals can save money in US dollars and stablecoins, engage in cross-border money transfers with minimal fees, and make payments at various shops.
The inspiration behind Hurupay came to co-founder and CEO Philip Mburu, a Kenyan, when he relocated to Ghana in September 2021. Mburu shared his experience, stating, ‘I had a very big challenge sending or receiving money as a migrant. There were few to no options to transact money across borders, and those that existed charged a very high fee of up to eight percent for a transaction that would still take up to three days to process. At the same time, the value of the Ghanaian cedi was constantly depreciating, affecting the savings I had in Ghana.’
Driven by the need for a more stable currency, Mburu delved into alternative ways of sending and receiving money and maintaining savings in a resilient currency like the US dollar. He recognised the potential of cryptocurrencies, particularly stablecoins, as borderless and accessible alternatives to traditional currencies.
Mburu’s vision gained momentum when he met James Mugambi, now Hurupay’s COO, during Mugambi’s tenure as an entrepreneur-in-residence at the Pangea accelerator in Kenya. The team expanded when Allan Okoth, now CTO, joined after participating in the Sankore Academy blockchain coding camp. Together, they officially launched Hurupay in February, united by the goal of addressing a pressing issue in Africa.
Mburu elucidated the problem they aim to solve, saying, ‘In Africa, there are more than 44 million SMEs providing employment to more than 80 percent of the population. A majority of these SMEs rely on local currencies such as Ghana cedis or Kenyan shillings for payments, but these currencies often depreciate in value against more stable currencies like the US dollar, leading to financial uncertainty and insecurity for SMEs.’
He highlighted the unique value of Hurupay, noting that many crypto wallets in Africa primarily target consumers and do not cater to businesses, making it challenging for SMEs to process stablecoin payments. Hurupay is bridging this gap by enabling SMEs to efficiently collect payments from customers and conduct cross-border transactions with ease.
The demand for stablecoins in Africa is on the rise due to their accessibility to US dollars and cost-effective cross-border transactions. Hurupay has experienced remarkable growth, attracting over 1,500 active users and processing transactions worth over $100,000 within two months of its official launch in Ghana, Kenya, and Nigeria.
Currently operating with a $21,000 grant from Prezenti Grants in partnership with the Celo blockchain foundation, Hurupay generates revenue through a two percent fee on off-ramping and a 0.5 percent fee on payments to SMEs.
Sharing the company’s future plans, Mburu said, ‘We are in the process of integrating Visa and Mastercard to allow people living in North America and Europe to deposit on Hurupay and from there send money to families and friends in Africa instantly. By the end of this year, we hope to expand to Rwanda, Tanzania, and Uganda, before adding 10 more countries come 2024.’
With its innovative approach, Hurupay is poised to continue reshaping the financial landscape in Africa, providing a stable and efficient solution to the challenges posed by fluctuating local currencies.