Original Story: AllAfrica.com
A new Bitcoin transmission mobile app, Kipochi, has been launched. The Danish founder, Pelle Braendgaard, is targeting Foreign Labors who wish to send their remittances home without paying the large transfer fees they have been previously subjected to. The average fee a migrant pays to transfer money home now is around 12%.
Kipochi’s Bitcoin wallet is free, as is transmitting bitcoins from person to person.
Braendgaard hopes to allow shops function as exchange agents and he will take 1% of the transaction’s fee. There is no word on the percentage these hypothetical shops would charge for the exchange to national currencies.
Kipochi claims to have representatives in Kenya, Nicaragua, Spain and Malaysia.
BitPesa is a Kenyan startup is taking advantage a trail regulatory approval. They currently handle around 7,000 transactions per month. BitPesa exchanges the senders currency to Bitcoins to the recipients’ currency. There is a 3% fee on each transaction.
Western Union who charges about 6% on a $200 transaction currently holds 30% of the remittance market.