BluPay Launches in Cameroon, Targets Cheaper Cross-Border Payments

Fintech platform BluPay has entered the Cameroonian market with a WhatsApp-based service designed to facilitate cross-border payments using blockchain technology and stablecoins. The platform was officially launched in Yaounde on August 15, making Cameroon the fifth African market in which the company operates. Its other markets are Ghana, Kenya, South Africa and Mauritius.

BluPay also says its infrastructure enables users in these African markets to receive payments from European countries, the United Kingdom and the United States. Unlike conventional financial applications, BluPay does not require users to download software from the App Store or Google Play Store. Customers save the company’s WhatsApp number on their phones and communicate with an automated interface to initiate transactions.

Payment instructions sent through WhatsApp are transmitted to BluPay’s back-end system for processing. The company says this approach is intended to make the service accessible to people already using the messaging platform.

Platform targets transfer costs

BluPay co-founder Nomboh Evans Kunchu told Business in Cameroon that the platform uses blockchain infrastructure to reduce the cost and processing time of transfers between African countries. He said sending money through existing channels can cost users up to 15% of the amount transferred, while BluPay is targeting transaction charges starting from 0.5%.

“With BluPay, we are enabling people to use blockchain technology to send money across African countries. Transactions can be completed faster and at a lower cost, with charges starting from as little as 0.5% of the amount sent,” Kunchu said.

The platform’s entry expands the range of digital payment services available to Cameroonian individuals and businesses conducting transactions with partners outside the country. BluPay is targeting cross-border payments, including transfers linked to commerce, services and remittances. Its operating model removes the requirement for users to install a separate application, while stablecoins serve as the infrastructure through which funds are moved.

Kunchu said the company uses stablecoins, cryptocurrencies designed to maintain a value linked to a reference asset such as the US dollar. He added that BluPay aims to build a Cameroon-founded technology company valued at more than $1 billion.

Stablecoins underpin payment system

BluPay co-founder and Chief Operating Officer Abiringwo Junior said stablecoins allow the company to move funds without relying on the full chain of intermediary and correspondent banks commonly involved in international payments. Under traditional arrangements, he explained, a transfer from Cameroon to another African country may first pass through an intermediary bank in London or New York before reaching a correspondent bank in the recipient country.

“Stablecoins help us reduce the time and cost involved in processing payments. They allow transactions to be completed within five to 10 seconds and can make money move almost as fast as sending a text message,” Abiringwo told Business in Cameroon.

According to him, stablecoins are generally pegged one-to-one to the US dollar, distinguishing them from cryptocurrencies such as Bitcoin whose market prices can fluctuate significantly. BluPay says the technology will help it address three areas in African cross-border payments: transaction speed, transfer costs and liquidity for settlement. Its Cameroon launch gives local users access to the platform’s existing payment corridors while adding the country to BluPay’s expanding African network.

Mercy Fosoh