WorldRemit, a London-based tech start-up, has signed a deal with MTN, a move that will enable its customers to transfer money to the South Africa-based telecoms company’s mobile payment customers.
The partnership will add MTN’s 22m mobile money customers in 16 countries across the continent to the group which is targeting the multibillion-dollar market in migrant remittances.
The African remittance market is among the most expensive in the world, with average transfer rates of 12% and excess fees costing the continent $1.8bn a year, according to the Overseas Development Institute. WorldRemit takes about 5% of transactions, according to the company.
“The tie-up will help WorldRemit reach millions of people who don’t have bank accounts, giving them access to a variety of life-enhancing financial services including savings and insurance schemes”, says Ismail Ahmed, WorldRemit’s founder and chief executive.