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Two European money remittance firms have entered into a partnership that will allow Kenyans abroad to instantly send cash through M-Pesa.
“This form of money transfer (mobile) has gained particular popularity due to its convenience, security, competitive pricing and near-instant delivery times,” said HomeSend chief executive Stephen Doyle in a statement.
The two money transfer services have customers across 20 countries in Europe and have joined the remittance companies using mobile money transfer services, which have a wider reach than agents and bank networks.
The partnership will also enable migrant workers send cash to Armenia, Burkina Faso, Fiji, Ghana, Indonesia, Nepal, Nigeria, the Philippines and Somaliland.
A World Bank report found that mobile money transfer services are the best bet for reducing the cost of sending money.
“The average cost of sending $200 (Sh20,000) to sub-Saharan Africa remains at 12 per cent (far off the G20’s target of five per cent) largely due to the cost of bricks-and-mortar agent networks of traditional firms. There is a huge potential for mobile technology to reduce costs on both the send and receive sides.”
Other remittance companies are also signing deals with telcos.
Earlier in the month Bharti Airtel and IDT Corporation, an American remittance company, signed a deal that will allow Kenyans in the diaspora to directly send money through Airtel mobile money transfer service.
WorldRemit, a UK-based online money transfer service, signed a deal in January that will allow workers in the diaspora to send money using MTN Mobile Money.
– Business Daily