South Africa - Business creation project

Describe your project or startup in a few words

Finesse is a fintech startup in the concept stage that aims to use blockchain technology to transform cross-border payments in Africa. Our mission is to increase financial access, inclusion, and blockchain adoption throughout the continent and beyond.

01.01 Describe your project in more detail

Finesse is a fintech startup in the concept stage that aims to use blockchain technology to transform cross-border payments in Africa. Our mission is to increase financial access, inclusion, and blockchain adoption across the continent, allowing individuals and businesses to participate seamlessly in the global digital economy.

01.02 What is the main problem you are trying to solve?

Traditional cross-border payments are expensive, with fees averaging 9% in Sub-Saharan Africa compared to the global average of 6%. For instance, a $500 transfer from Tanzania to Uganda can cost an average of 33.58% ($167.90). Slow Transactions: Current systems are slow, often taking days to complete transactions, particularly for business-to-business payments. Financial Exclusion: More than 60% of adults in Sub-Saharan Africa are unbanked or underbanked, limiting their access to financial services. Insecurity: Many people are hesitant to participate in international finance due to fraud and a lack of transaction transparency.

01.03 Tell us the major benefits and/or advantages of using the product/service that your project intends to provide (at least 3).

Finesse leverages blockchain technology, specifically Circle's stablecoin USDC, which is a fiat-backed stablecoin enabling global value transfer at internet speed for a fraction of a cent. It allows for easy conversion back to local fiat currencies. Our solution provides: Blockchain Technology: Leveraging blockchain for transparency, security, and efficiency in cross-border transactions, working seamlessly in the background. Lower Fees: Reducing costs significantly compared to traditional payment methods. Fast Transactions: Near-instantaneous transaction processing, eliminating delays. Inclusive Financial Solutions: Tailored services to meet the needs of the unbanked and underbanked populations. Note: USDC (USD Coin) is a stablecoin pegged to the US Dollar, ensuring stability and reduced volatility compared to other cryptocurrencies. USDC is fully backed by cash and short-dated U.S. government obligations, maintaining a 1:1 redeemable value for U.S. dollars.

01.04 Please describe who exactly your project is aimed at serving. Who are the targeted beneficiaries?

High-Cost Remittances: The average cost of sending remittances from South Africa to Zimbabwe is 14.95%, one of the highest in the region. Market Value: South Africa is the largest remittance-sending market in Africa, with significant remittance flows to Zimbabwe. Informal Channels: Around 52% of remittances from South Africa to SADC countries, including Zimbabwe, are sent informally due to high costs and inefficiencies in formal channels. Migrant Population: South Africa officially hosts 1.6 million migrants, with estimates suggesting there may be more than 3.7 million, including informal migrants. This large migrant population underscores the need for efficient and affordable remittance solutions. Global Remittance Market: The global remittance market was valued at $689 billion in 2021, with significant growth expected in the coming years. Growing Remittance Market in Africa: Africa received over $100.1 billion in remittances in 2022, with numbers expected to rise at a 12.1% CAGR.

01.05 When did you start working on your project?

2024-04-01

01.06 How many other partners are associated with your business venture?

0

01.07 Among the other partners, how many are female?

0

01.08 Please describe the profile of each of the other partners (skills, experience, etc.)

N/A

01.09 If you have a website, a social media page (Facebook, Instagram, Linkedin…), or app, please provide the link here:

https://www.linkedin.com/in/desmond-malvern-m-5918821b5

01.10 Which industry best describes your project?

g) Financial services

02.01.01 My project contributes to the No poverty goal

7 - Strongly Agree

02.01.02 No poverty - Justification

SDG 10: Reducing the cost of remittance transfers can substantially increase disposable income for remittance-receiving families. By reducing average costs to 3 per cent globally, remittance families would save an additional US$20 billion annually. Our Solution: Finesse makes use of blockchain technology, specifically Circle's stablecoin USDC, which is a fiat-backed stablecoin that allows global value transfers at internet speeds for a fraction of a cent. It allows for easy conversion back to local fiat currencies. Note: USDC (USD Coin) is a stablecoin pegged to the US Dollar, ensuring stability and reduced volatility compared to other cryptocurrencies. USDC is fully backed by cash and short-dated U.S. government obligations, maintaining a 1:1 redeemable value for U.S. dollars.

02.02.01 My project contributes to the Zero hunger goal

4

02.02.02 Zero hunger - Justification

02.03.01 My project contributes to the Good health and well-being goal

4

02.03.02 Good health and well-being - Justification

02.04.01 My project contributes to the Quality education goal

3

02.04.02 Quality education - Justification

02.05.01 My project contributes to the Gender equality goal

3

02.05.02 Gender equality - Justification

02.06.01 My project contributes to the Clean water and sanitation goal

2

02.06.02 Clean water and sanitation - Justification

02.07.01 My project contributes to the Affordable and clean energy goal

2

02.07.02 Affordable and clean energy - Justification

02.08.01 My project contributes to the Decent work and economic growth

4

02.08.02 Decent work and economic growth - Justification

02.09.01 My project contributes to the Industry innovation and infrastructure

7 - Strongly Agree

02.09.02 Industry innovation and infrastructure - Justification

Cost reduction: By leveraging blockchain technology (stable coins), Finesse can significantly reduce the costs associated with cross-border payments, making remittances more accessible. Financial Inclusion: Offering secure and efficient financial services to the unbanked and underbanked populations in both South Africa and Zimbabwe. Market penetration entails tapping into the large and growing remittance market between South Africa and Zimbabwe, with a focus on converting informal remittance flows to formal channels using our innovative platform.

02.10.01 My project contributes to the Reduced inequalities goal

7 - Strongly Agree

02.10.02 Reduced inequalities - Justification

SDG 10: Reducing the cost of remittance transfers can substantially increase disposable income for remittance-receiving families. By reducing average costs to 3 per cent globally, remittance families would save an additional US$20 billion annually. Our Solution: Finesse makes use of blockchain technology, specifically Circle's stablecoin USDC, which is a fiat-backed stablecoin that allows global value transfers at internet speeds for a fraction of a cent. It allows for easy conversion back to local fiat currencies. Note: USDC (USD Coin) is a stablecoin pegged to the US Dollar, ensuring stability and reduced volatility compared to other cryptocurrencies. USDC is fully backed by cash and short-dated U.S. government obligations, maintaining a 1:1 redeemable value for U.S. dollars.

02.11.01 My project contributes to the Sustainable cities and communities goal

5

02.11.02 Sustainable cities and communities - Justification

Our cross-border payments fintech startup promotes inclusivity, safety, resilience, and sustainability within cities and communities. Through accessible transactions, enhanced security, financial resilience, reduced environmental impact, and global collaboration, it contributes significantly to making urban areas more inclusive, safe, resilient, and sustainable.

02.12.01 My project contributes to the Responsible consumption and production goal

3

02.12.02 Responsible consumption and production - Justification

02.13.01 My project contributes to the Climate action goal

2

02.13.02 Climate action - Justification

02.14.01 My project contributes to the Life below water goal

2

02.14.02 Life below water - Justification

02.15.01 My project contributes to the Life on land goal

2

02.15.02 Life on land - Justification

02.16.01 My project contributes to the Peace justice and strong institutions goal

7 - Strongly Agree

02.16.02 Peace justice and strong institutions - Justification

Our cross-border payments fintech startup significantly contributes to the "Peace, Justice, and Strong Institutions" goal through financial inclusion, transparency, efficiency, global connectivity, and data security. By providing accessible and transparent payment solutions, reducing corruption, streamlining transactions, fostering international cooperation, and ensuring data integrity, our startup plays a crucial role in Financial Inclusion: By providing faster, cheaper, and more accessible cross-border payment solutions, your startup can promote financial inclusion. This inclusion empowers individuals and businesses, fostering economic stability and reducing inequalities, which are fundamental aspects of building peaceful societies.Transparency: Blockchain technology, if integrated into your payment solutions, brings transparency to transactions. Transparent financial systems contribute to reducing corruption and illicit financial a peace, justice, and the strength of institutions.

02.17.01 My project contributes to the Partnerships for the goal

7 - Strongly Agree

02.17.02 Partnerships for the goal - Justification

Finesse makes use of blockchain technology, specifically Circle's stablecoin USDC, a fiat-backed stablecoin that allows global value transfers at internet speeds for a fraction of a cent. Aligning with UN SDSDG 10 to reduce the cost of remittance transfers can significantly increase remittance-receiving families' disposable income. Remittance families could save an additional $20 billion per year if global average costs were reduced to 3%.

05.01 There are a large number of customers who already use a product/service very similar to the product/service we envision creating.

7 - Strongly Agree

05.02 The product/service we envision creating represents an entirely new type of product/service.

7 - Strongly Agree

05.03 The product/service we envision creating could be described as a new technology.

7 - Strongly Agree

05.04 The product/service we envision creating is an improvement on an existing product or service.

7 - Strongly Agree

05.05 The product/service we envision creating could be described as an extension of a range of products or services.

7 - Strongly Agree

05.06 The product/service we envision creating responds to a demand or need that has not been satisfied by other products/services.

7 - Strongly Agree

05.07 The product/service we envision creating is a new version of an old product/service.

7 - Strongly Agree

05.08 Justification

Finesse distinguishes itself by utilizing blockchain technology (stable coins) to provide lower fees, faster transactions, and improved security, positioning itself as a next-generation solution for cross-border payments.

05.09 Who are your main potential competitors and what makes you stand out from them?

Mukuru Western Union WorldRemitt These competitors dominate the South Africa-Zimbabwe remittance market with established customer bases and extensive networks. However, Finesse differentiates itself by leveraging blockchain technology (stable coins) to offer lower fees, faster transactions, and enhanced security, positioning itself as a next-generation solution for cross-border payments.

10.06 Are you initiating actions within your community to promote the role of female entrepreneurs?

No, we have not initiated actions within our community to promote the role of female entrepreneurs yet.