Truzo, an Africa-focused digital escrow platform that offers traders an alternative to letters of credit (L/Cs), has been approved to do business in the UK where it has gained approval from Britain's Financial Conduct Authority (FCA).

This means transactions between the UK and South Africa can become safer and more reliable, providing both buyers and sellers of goods and services greater confidence and security, according to the fintech that operates out of London and Johannesburg.

Digital benefits

Truzo uses a web- and app-based escrow platform to offer a one-stop shop for businesses of all sizes with the aim of assuring the timely delivery of goods or services and on-time payments.

The firm reckons its platform can also help prevent fraud and significantly reduce the burden of administration associated with traditional forms of international financing.

Additional services

While its primary focus is on digital escrow transactions, Truzo also offers auxiliary features including multicurrency digital wallets, remittances as well as payments and receipts.

South African and UK bilateral trade was worth around US$13 billion in 2021, with non-ferrous metals, fresh produce and telecommunications services amongst the most exchanged goods and services.

Cutting L/C costs

Truzo claims that by digitising and removing the high fees associated with L/Cs and currency conversions, its services can reduce the cost of trade between the UK and South Africa.

The firm is supported by the British government's department for international trade and has partnered with global payments platform Currencycloud, which is owned by Visa.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.