Blockchain and cryptocurrency infrastructure provider Binance has launched a fiat gateway for South African rand.
Binance is the world’s largest cryptocurrency exchange by trading volume. It says the move expands its product offerings and bolsters its local presence in the region.
The fiat gateway lets South African users make instant EFT deposits using Stitch.
“The top 5 financial institutions in South Africa and Nigeria are currently supported. These include: Absa, Capitec, FNB, Nedbank and Standard Bank,” Binance’s website states.
Stitch is a South African financial API infrastructure startup that has raised $27 million (R460 million) in various funding rounds since February 2021.
It expanded to Nigeria towards the end of 2021 and plans to soon add Kenya, Ghana, and Egypt.
“Our goal at Binance has always been to drive crypto adoption and promote financial accessibility,” said Binance South Africa country lead Hannes Wessels.
“We are thrilled to be taking this next step in making access to digital assets more effortless for South Africans.”
Binance said users could instantly deposit rands into their exchange wallets and buy cryptocurrency.
Users will also be able to convert rands into bitcoin, Binance’s USD stablecoin, ether, Tether (USDT), and BNB.
MyBroadband tested Binance’s Stitch fiat gateway functionality. Screenshots of the procedure are included below.
Binance’s web app stated that rand-based instant EFT deposits attract a 1% fee.
To link your bank account, Binance redirects you to Stitch’s domain, where you are required to provide your online banking username and password.
Stitch has assured that the information is secure.
“We don’t share usernames and passwords with anyone,” a spokesperson told MyBroadband.
“All user details are stored in a secure, encrypted vault hosted by Microsoft Azure.”
Stitch explained that it, and the websites that use its service, only hold a randomly-generated token containing the username and password.
“When users return to make a future payment, this token is used to identify them, and their details are then passed from the vault to the bank without the website having access to them,” it stated.
“We also conduct regular penetration tests using external, CREST-certified vendors to ensure that our systems follow the strongest security practices available and that they’re protected against attackers.”