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TerraPay forms council to improve global wallet interoperability

Wednesday 21 August 2024 10:39 CET | News

Global money transfer company TerraPay has announced a partnership with five major digital wallet operators to create the Wallet Interoperability Council.

 

This initiative is intended to use TerraPay's technology to improve the connection and interoperability of cross-border transactions between these wallets. The founding members of the council, namely Airtel, bKash, MPESA, Nequi, and Sama Money, represent a significant user base across countries such as Bangladesh, Colombia, Kenya, Senegal, Tanzania, and Uganda. These operators collectively serve millions of wallet users in these regions. 

The council's objective is to streamline international remittances, merchant payments, and other cross-border transactions by integrating their various platforms. Historically, digital wallets have primarily operated as local payment solutions, but there is a growing need to expand their functionality on a global scale according to TerraPay. The company’s technology aims to support this expansion. 

Safaricom officials highlighted the importance of this initiative, noting that it will improve the company’s ability to offer greater value to its users for international money transfers.

 

Global money transfer company TerraPay has announced a partnership with five major digital wallet operators to create the Wallet Interoperability Council.

 

Enhancing cross-border payments

The collaborative effort aims to establish secure, efficient, and cost-effective cross-border wallet transactions. TerraPay will provide the necessary technological infrastructure and manage the clearing and settlement processes to enable these transactions. 

Representatives from Nequi emphasised that this partnership is strategic for accelerating the adoption of digital wallets and improving the overall cross-border payment experience. Airtel Money officials noted that the alliance adds significant value by eliminating the need for multiple bilateral agreements, making it easier for users to operate their wallets internationally. 

Research cited by TerraPay indicates that by 2028, the global wallet market could process around USD 16 trillion in transactions annually, with multi-rail wallets becoming increasingly important in both ecommerce and face-to-face transactions. bKash representatives mentioned that the collaboration would enhance consumer experience by leveraging the reach and capabilities of each participant while maintaining operational independence. Moreover, Sama Money officials commented that the council addresses key market challenges and could change perceptions about the use of digital wallets in cross-border commerce.


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Keywords: partnership, digital wallet, cross-border payments, fintech
Categories: Payments & Commerce
Companies: TerraPay
Countries: United Kingdom
This article is part of category

Payments & Commerce

TerraPay

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