What's Happening?
Digit9, a cross-border payments orchestration platform, has partnered with dLocal, a cross-border payment platform focused on emerging markets, to expand its payout offerings in key African markets. This collaboration aims to utilize local bank rails and alternative payment methods to address the high remittance costs in Africa, which average 8.5%, nearly triple the UN's recommended benchmark of 3%. The partnership seeks to reduce processing layers, improve delivery speed, and offer broader payout options through a single platform, enhancing the local relevance of cross-border payments.
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Why It's Important?
The partnership between Digit9 and dLocal is significant as it addresses the high cost of remittances to Africa, which remains the highest globally. By streamlining payment processes and offering more efficient solutions, the collaboration has the potential to significantly reduce costs and improve access to funds for recipients. This development could benefit local economies by facilitating easier and cheaper money transfers, thereby supporting economic growth and financial inclusion in diverse and fast-growing African markets.
What's Next?
Digit9 and dLocal plan to continue building payout experiences that reflect local money movement practices, aiming to offer more dependable payouts in key African countries. As the partnership progresses, it may lead to further innovations in payment solutions tailored to the unique dynamics of each market, potentially attracting more stakeholders interested in improving financial services in Africa.
Beyond the Headlines
This partnership highlights the importance of understanding local payment ecosystems and the need for tailored financial solutions in emerging markets. It underscores the potential for technology-driven platforms to bridge gaps in financial services, promoting greater economic integration and development across regions with complex payment landscapes.
