Lugh Partners With Ejara To Bring Cheaper Cross-border Payments Between Europe and Africa.
On Friday, the developer of the EURL stablecoin, made a collaboration announcement with Ejara to expedite cross-border payments between Europe and Africa.
EURL is a 1:1 euro-backed stablecoin launched in 2021 by the French AMF. The EURL is issued and managed by Lugh, a company backed by Groupe Casino and Société Générale, and it is fully backed by a euro reserve held by SG.
Ejara is a mobile app that supports cryptocurrencies and tokenized assets that are specifically tailored to the African market. Ejara is also the first crypto investment app available in French Africa on Android and the App Store.
According to some estimates, there are about 30 million Africans residing outside of their home countries, with remittances to Sub-Saharan Africa alone reaching roughly $47 billion. Despite the huge demand, payment channels between Africa and the rest of the globe are the most costly in the world.
On average, remittances cost between 8 and 10% of the transaction value, which is a significant sum in any situation. As a result, about $4.7 billion in expenditures depart the continent every year.
A low-cost, dependable cross-border payment system might be extremely beneficial in improving the financial situation of the African population.