Peer-to-peer (P2P) cryptocurrency trading platforms are now driving expansion in Africa, outpacing other parts of the world regarding the grass-roots acceptance of virtual currencies.
- M-Pesa, a widely used mobile money transfer service in Kenya, has grown in popularity throughout Africa.
- Binance is the largest crypto exchange in terms of volume and has the most significant trading activity of any crypto exchange anywhere in the world.
- Users can now seamlessly convert fiat currency for cryptocurrencies in their peer-to-peer transactions thanks to the incorporation of M-Pesa, which is protected by escrow service.
The growth of peer-to-peer transactions
Peer-to-peer (P2P) cryptocurrency trading platforms are now driving expansion in Africa, outpacing other parts of the world regarding the grass-roots acceptance of virtual currencies. Retail-sized transactions account for a significant portion of the continent’s crypto activity, with P2P facilitating the practical application of digital money.
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Kenya has set the standard for peer-to-peer cryptocurrency trading in Africa. The East African country is a world leader in P2P crypto transactions. According to a recent survey, internet-savvy Kenyans are topping the world in the use of cryptocurrency networks where users trade amongst themselves.
According to Chainalysis’ Global Crypto Adoption Index 2021, Kenya is the top nation in the world for P2P exchange transactions, far clear of all other 154 countries examined. The index accounts for purchasing power parity per capita and the number of internet users.
Part of the increase in P2P transactions can be attributed to the widespread use of mobile money. In Kenya, mobile money transactions have eclipsed the use of real currency, which was only made feasible by the regulator’s openness to experiment with new technologies.
M-Pesa, a widely used mobile money transfer service in Kenya, has grown in popularity throughout Africa. Indeed, M-Pesa is listed as a viable payment option on practically every African crypto market.
The onset of the relationship between Binance and M-Pesa
Binance is the largest crypto exchange in terms of volume and has the most significant trading activity of any crypto exchange anywhere in the world. However, African crypto traders have remained in the lead regarding the most extensive utilization of Binance for multiple crypto benefits. This is despite the fact that Binance presides over almost all of the nations that are wealthy in cryptocurrencies.
Binance began offering support for M-Pesa payments for peer-to-peer (P2P) trade around two years ago. Users have had the opportunity to buy Bitcoin in Kenya using Binance P2P as of the 20th of August, 2020, and pay for their purchases with M-Pesa, the most prominent payments service provider in the nation. In addition to Bitcoin, customers have the opportunity to acquire cryptocurrencies such as Ethereum, USDT, BNB, BUSD, and EOS with no associated transaction costs.
The move also opened up more possibilities for trading cryptocurrency in Kenya, particularly compared to the prevalent profit margins of between 1 and 3 per cent for P2P trading in Africa. Binance made it easier for users to take advantage of zero fees on Binance P2P with this launch.
M-Pesa on Binance is a golden opportunity
Because of the high transaction fees associated with using cryptocurrency services in Africa, many traders could not participate in cryptocurrency trading before Binance’s M-Pesa integration. However, this presented an ample opportunity for those traders. Binance saw a significant difference in their profit margin after declaring this adjustment in their strategy, ranging from an increase of up to 1% to 3% in just Africa.
Binance has enabled direct buying and selling of crptocurrency with its other 62 supported payment methods since it began accepting M-Pesa as a payment option. Because of this, trading cryptocurrencies and making deposits will now be more efficient, safe, and secure due to the shift. As a direct consequence, M-Pesa has emerged as a significant assisting hand for businesspeople who previously had difficulty transferring their money worldwide.
Recently, there has been a significant increase in the price of cryptocurrencies in Africa. There has been a rise in the trading of cryptocurrencies, mining of cryptocurrencies, and other applications of cryptocurrencies across Africa. These cryptocurrencies include bitcoin, Ethereum, and Ripple, amongst many more.
Since the launch of cryptocurrency and its subsequent adoption around the world, Binance has had a degree of success that can be described as satisfactory. The platform guarantees that it will provide its users with dependability, affordability, and quick accessibility to a wide variety of payment methods compatible with mobile devices. Integrating M-Pesa into Binance offers additional reassurance to the dedication to providing excellent customer service.
According to the most recent updates from Binance on the acceptance of M-Pesa payments, Kenya has experienced a significant movement toward Binance in their pursuit of the quickest, most reputable, and most effective crypto mobile payments available anywhere in the world. Traders of cryptocurrencies in Kenya no longer need to go to banks and pay heavy taxes because they can now make payments remotely using their mobile devices instead.
On the Binance P2P platform, where users can post their trade advertisements for trading cryptocurrencies directly with other users, Kenya Shilling (KES) has also been introduced as a supported currency by Binance. Users can now seamlessly convert fiat currency for cryptocurrencies in their peer-to-peer transactions thanks to the incorporation of M-Pesa, which is protected by escrow service.