A remittance company situated in South Africa, Xago, which was created with the main aim of sidestepping traditional payment rails and card processors, has announced that it would be expanding its payment services across the continent. This was revealed in a statement by the company, indicating that it had received an investment fund to develop its operations.
The cryptocurrency-oriented payment company noted that it received an extensive investment that will enhance the expansion of its crypto payment services across the African remittance markets.
As said in the release, the African payment company got the investment fund from a South Africa-based venture capital investment company, Capitec Bank, founded by Empowerment Capital Investment Partners. Empowerment Capital Investment Partners is a New York-based company that claims to be dedicated to creating opportunities for all South Africans through commercial investment.
Xago said via the investment, it would be expanding its services across the African markets for individual clients and business corporations.
Xago depends on Ripple blockchain technology, XRP Ledger, in offering people a payment gateway that excludes the traditional means. Xago has a custom-built exchange for trade, where it facilitates payment operation with XRP/Xago Digital ZAR trade pair.
The co-founder of the company, Mark Chirnside, said Xago emerged as a system that helps revitalized payment operations.
Chirnside, while addressing the latest development, said the investment would help propel the mission of the company, in settling transactions swiftly with a meager cost.
The Executive Director of Empowerment Capital and Imvelo Ventures, Anton Baumann, described Xago as a company that offers well defined and distinctive payment means which eliminate traditional payment rails.
He said by funding the compliant and highly secure payment company, SMEs, individuals and Corporate bodies would be open to more opportunities that help them build alternative wealth within the African continent and more importantly South Africa.
Baumann said it is a perfect move for Empowerment Capital and Imvelo Ventures into the crypto industry.
Earlier, a co-founder of the company Jurgen Kuhnel, in an interview with NewsLogical said they prefer XRP to Bitcoin as the former helps them settle transactions in a swift and best way.
Kuhnel, then, explained that the speed and efficiency of XRP are amongst the reasons Xago prefers Ripple technology over Bitcoin, adding that the latter fall short of some capabilities.
While volatility remains a challenge in the crypto industry, if funds were to be sent by Bitcoin, the value of the money would have changed before reaching its destination, this is due to the low speed of the technology compared to XRP, the Xago co-founder said.