Conduit's Focus on B2B Cross-Border Payments in Africa

Conduit, a fintech platform that initially focused on bridging decentralized finance (DeFi) with traditional finance, has pivoted to focus on B2B cross-border payments, particularly in emerging markets like Latin America and Africa. The company realized that traditional businesses faced significant challenges with traditional banks in these regions, such as high costs, slow processing times, and limited access to essential payment rails.

• Conduit offers a faster and more transparent way for businesses to transact with suppliers and partners across borders.
• The platform enables businesses to pay U.S. dollars directly to bank accounts via ACH or SWIFT, even without a U.S. entity.

Conduit's Expansion into Africa

Conduit identified a significant market opportunity in Africa, where businesses in countries like Kenya and Nigeria face similar challenges to those in Latin America.

• The platform has seen impressive early growth in Africa, with transaction volume reaching 20% of its total volume, and a 25% month-on-month revenue increase.
• Conduit's expansion into Africa was fueled by its ability to address the challenges faced by businesses in the region.

Conduit's Approach to Solving Business Payment Challenges in Africa

Conduit's approach is to partner with local banks in each country it operates, including Kenya and Nigeria. It utilizes technology to ensure faster payouts while leveraging the familiar payment methods of the local banks. Conduit handles the money transfer and currency conversion, ensuring transparency for the recipient.

• The platform's technology enables businesses to send money in their local currency using familiar methods.
• Conduit also provides a solution to the challenges of converting stablecoins into local currencies, allowing businesses to off-ramp stablecoins into local currencies where needed.

The Potential for Conduit in Africa

Conduit's success in Latin America has positioned the platform for further expansion in Africa. The company's focus on addressing the challenges faced by businesses in emerging markets, particularly in Africa and Latin America, highlights the potential for fintech solutions to disrupt the traditional banking landscape.

• Conduit aims to further expand its presence in Africa, with plans to enter markets such as Ghana and South Africa.
• The platform's success in Africa has been driven by the company's ability to provide a faster, more efficient, and transparent way for businesses to transact across borders.

Conduit's Competitors in the African Market

Conduit faces competition from established platforms like AZA Finance and YC-backed Verto and Waza in the African market. However, Conduit believes its strength lies in its ability to work with local banks and its focus on providing a user-friendly experience for businesses in the region.

• Conduit's differentiator is its ability to partner with local banks, ensuring seamless integration with existing payment systems.
• The platform's focus on serving businesses in the Global South, including both Africa and Latin America, differentiates it from other players in the market.

The Future of Conduit in Africa

Conduit's expansion into Africa is a strategic move that leverages the platform's expertise in cross-border payments. The company is well-positioned to capitalize on the growing demand for efficient and reliable payment solutions in the region. Conduit's commitment to addressing the specific needs of businesses in Africa, including the use of local currencies and payment methods, demonstrates its commitment to delivering value to its customers.

• Conduit's long-term strategy is to become a leading provider of cross-border payment solutions for businesses in emerging markets.
• The platform's expansion into Africa is a key step towards achieving this goal.

Impact of Conduit on the African Market

Conduit's entry into the African market has the potential to bring significant benefits to businesses in the region. By providing access to faster, more efficient, and more transparent payment solutions, Conduit can help businesses in Africa connect with global markets and drive economic growth. The company's commitment to working with local banks and leveraging local currencies also demonstrates its understanding of the unique needs of businesses in the region.

• Conduit is poised to play a key role in the growth of the African economy by facilitating cross-border trade and investment.
• The platform's success in Africa will be a testament to the power of fintech to address the challenges faced by businesses in emerging markets.