Dar es Salaam – 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.