WorldRemit is partnering with leading mobile
money operators to increase mobile-to-mobile remittances and unlock the
millions lost in sending money to Tanzania from around the world.
WorldRemit, a leading international mobile money remittance
company, said the mobile-to-mobile transfers to Tanzania can cut the overall
costs of remittances for both the senders and recipients by as much as 50 per
cent.
A recent report from FSD Africa reveals that Tanzania is the
most
expensive country in Africa to send money to from the UK, costing just
under £17 to send £120. In comparison, sending money to mobile money accounts
with WorldRemit saves senders as much as 50 per cent of the fees while saving
time and money for recipients by removing the need to travel to major cities to
collect cash from agent locations.
With just under $390 million being sent in remittances to
Tanzania globally, the saving could increase funds entering the Tanzanian
economy by tens of billions of shillings. WorldRemit announced the figures at
the GSMA Mobile 360 conference in Dar es Salaam on Thursday following the
launch of a major partnership with Huawei.
The partnership will enable WorldRemit to accelerate the
growth of its mobile money network internationally and to work with local
mobile money providers to promote mobile to mobile remittances.
Alix Murphy, the director of mobile partnerships at
WorldRemit, said: “Saving on the transaction costs is only part of the picture.
Our goal is to help people to save time and money on all aspects of sending and
receiving money internationally. Mobile to mobile remittances mean there is no
need to travel, take time off work or to ask others for help in collecting
money.”
So, there are no indirect costs so people can send money
more frequently and stay closely connected to friends and family.
Remittances are one of the fastest growing mobile money
products, according to GSMA, and often the first step to opening a mobile money
account and financial inclusion.
According to Leon Isaacs, the CEO at Developing Markets
Associates, over 90 per cent of remittance transactions are made using cash in
both the sending and receiving countries.
“Using new technology, and mobile payments in particular,
improves efficiency and transparency and importantly can lead to lower costs
and greater convenience for customers,” Isaacs said.
WorldRemit, which connects to over 20 per cent of all global
mobile money accounts, said there is seeing a significant switch from cash
pay-out to mobile money when sending money to Tanzania. More than ten times as
many transfers are being paid out as mobile money than are paid out as cash.
Source: New Times RW