This partnership is poised to help businesses in Africa and Asia thrive in an increasingly interconnected global economy by providing cross-border payment solutions. In addition, it opens the path for new avenues for both continents, facilitating market expansion and easing entry into new territories.
Over the last two decades, Africa's trade relationships have undergone a significant transformation, with Asia emerging as a global trading partner. Moreover, studies show that Asia accounts for more than 40% of Africa's imports and exports. As a result, facilitating cross-border transactions between the two regions has become increasingly important. To address this need, Klasha and FOMO Pay have joined hands to provide a platform that improves cross-border payment capabilities for businesses across Africa and Asia.
According to the official announcement, this alliance is set to provide easy collection and payments, as FOMO Pay is set to improve collections for its corporate clients by leveraging Klasha's platform. This will allow businesses to receive payments in local African currencies and preferred payment methods while receiving payouts in their desired currencies.
Moreover, both companies' strategies are oriented toward market expansion. Asian businesses can unlock opportunities to expand into new markets in Africa and broaden their customer base with Klasha and FOMO Pay's joint efforts in facilitating cross-border payments.
Commenting on the partnership, both Klasha and FOMO Pay expressed their enthusiasm about collaborating for a common purpose. Moreover, Klasha specified that with combined efforts, it will continue to help merchants in Asia collect payments from the continent more easily.
FOMO Pay is a payment institution regulated under the Payment Services Act in Singapore, licenced by the Monetary Authority of Singapore (MAS) to conduct Cross-Border Money Transfer Services, Domestic Money Transfer Services, Digital Payment Token Services, and Merchant Acquisition Services. The firm has become a one-stop digital payment, digital banking, and digital asset solution provider. It is currently building Asia's fully licenced financial platform, helping institutions and businesses connect between fiat and digital currency.
The company had multiple collaborations and product launches in the last couple of months, covering several different geographic areas around the world. In December 2023, FOMO Pay partnered with Zand Bank to facilitate secure cross-border payments between the regions of Asia and MENA. The collaboration is set to optimise the cost-effectiveness and time efficiency in the B2B cross-border transactions between the two markets, as well as provide businesses with streamlined digital payment and digital banking services for collections and payouts.
One month before that, Mastercard Singapore and FOMO Pay announced their partnership to introduce the Mastercard QR within SGQR, which was expected to allow cardholders and customers to scan and pay using their Mastercard products.
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