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While solutions like Western Union and Moneygram exist to solve this problem, issues pertaining to timing, convenience, and cost still arise. For instance, a person who wants to receive money from a relative in the US may have to wait for days or weeks before the money reaches Nigeria. It was in a bid to solve this problem that Ben Eluan, a regular freelance developer, co-founded Blueloop with his friend, Osezele Orukpe, while in university. Eluan had faced challenges receiving payment from a client in the UK. In the end, he had to resort to using Skrill to collect the money but ended up incurring extra charges. This inspired him to build a solution that would streamline payments for people looking to receive money from abroad, as well as freelancers and merchants who rely on international transfers. The duo dropped out of school to focus on building the startup.
The Crypto And Fiat Hybrid
After investing time and effort, they built Flux, a subsidiary solution of Blueloop and a hybrid app that combines both worlds of a cryptocurrency wallet and a digital banking app. The solution enables users to receive money from all over the world and convert it to fiat money.“When someone sends you money from the United States using their crypto wallet, CashApp for example, the money goes straight to your crypto wallet in the Flux app; then you can move it to your fiat wallet which functions just like your bank app,”Eluan says.
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According to Eluan, the bank transfer feature is designed for transactions such as airtime purchases, payment of bills, and shopping. Users are charged a flat rate of ₦50 ($0.13) for every transaction, while Flux users enjoy free transactions when they transact between themselves. For crypto transactions, users can buy popular cryptos like Bitcoin for a 0.5% fee.
How Flux Stands Out
Although Flux is an innovative solution that is aiming to fill a huge gap in the African market and has attained enough credibility to receive funding from investors, it is not without its competitors. Solutions such as Bundle and Sendcash enable users to make payments in crypto and convert to fiat money. However, Eluan believes Flux’s unique selling point is providing effective payment solutions to merchants, freelancers, and regular people who face frequent challenges with receiving money from abroad. Earlier in 2021, Flux was accepted into Y-Combinator’s accelerator program. The startup, as well as 10 other African startups, will get access to a $125 seed fund from the American accelerator. Featured Image Source: Disrupt AfricaGot a suggestion? Contact us: editor@connectnigeria.com