Centi cutting remittance costs by 85% from Switzerland to Africa

Centi is using blockchain to slash the cost of remittances from Switzerland to a selection of African countries. It promises up to 85% lower costs and up to 30% more money at the receiving end while also making the transfers near-instant.

The remittance market from Switzerland to Africa is larger than you might think. Centi puts the total transfers figure at around US$30 billion annually, with “a significant share of this” heading south to Africa. Currently, that market is dominated by traditional remittance providers, with high service fees, unfavorable exchange rates, and often long delays before recipients can use the money.

Centi can do this thanks to the Swiss franc stablecoin launched in 2023 and a partnership with the remittance app Minit Money. The new service allows direct payments to accounts at over 45 banks or, for those without bank accounts, to mobile wallets like MTN and Airtel. On the Swiss end, it’s possible to top up balances in the Centi wallet with cash.

Centi remittances are now available for eight African countries: Kenya, Nigeria, Uganda, Senegal, Ivory Coast, Cameroon, Benin, and Zambia.

“Traditional remittance services often charge $15 to send $100. With Centi, the cost is around $2,” said Centi CEO Bernhard Müller.

“These savings directly translate into family and friends helping each other more efficiently, often in situations of need. Our all-digital flow, which still allows physical cash to be remitted, is unique in accessibility and inclusivity. Even people without access to banking can access the digital economy through Centi.”

Why haven’t blockchain remittances become more popular?

Thirdly, popular blockchains like BTC and Ethereum have seen huge transaction fees increases as their networks become clogged—no one saves any remittance money if it costs $10-20 just for the blockchain transaction.

Mobile technology and fintech businesses like Minit Money have somewhat managed to reduce remittance costs, but there’s still the issue of on/off-ramps at each end of the transaction.

Centi launched its Swiss franc stablecoin (CCHF) two years ago, running on the BSV blockchain. This takes care of the price volatility and blockchain fees issue at the same time, given BSV’s focus on scalability and efficiency. Each CCHF unit is value-pegged at (CHF)₣1 by Centi’s provable CHF reserves, and the asset is fully regulatory-compliant and bank-guaranteed in Switzerland.

The company has previously stated that its stablecoin is intended for consumer and business use cases, not exchange-based arbitrage trading like other assets of its type. It has an open API for merchants who can access the network directly, rather than using third-party API service providers like Visa (NASDAQ: V) and Mastercard (NASDAQ: MA). CCHF, like the Swiss franc itself, can also be sent in smaller units (as little as ₣0.01).

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