- To enable efficient money transfer services in the country, Mama Money announced a partnership with global payment remittance firm Western Union.
- Through Western Union’s World Community, Mama Money’s customers can send money to over 200 locations across the world by a tap on their smartphone.
- Through this new deal, the transaction fee for users has also been reduced, the firm said.
While the ongoing pandemic has created turmoil in economies with most businesses experiencing low revenues, it has completely transformed tasks such as banking and remittances. Money transfer is moving from face-to-face transactions to a completely tech-driven realm.
As the need of the hour begged for faster and more efficient money transfers, people were forced to look for other alternatives due to the Corona-induced lockdown. Now, South Africa based fintech Mama Money joined forces with cross-border payment giant Western Union to enable its customers to remit money around the world from their smartphones.
This alliance will mean Mama Money’s 500,000 customers will be able to send money across more than 200 countries and territories which previously was just 50. Western Union’s global network will allow users to move money in minutes via its core cross-border assets.
It will become easier to remit money as users will be able to do so directly from their bank account or alternatively pay for at any major retailer such as at Pick n Pay, Boxer, Shoprite, Checkers, Cambridge, Boxer, Makro, and Game in South Africa.
Commenting on this new partnership, COO of Mama Money Nicolas Vonthron said:
“Western Union’s robust and reliable network coupled with Mama Money’s easy-to-use and reliable digital service is a highly strategic partnership with massive potential for tapping into a broader remittance market especially for the unbanked population.”
Reiterating the importance of a robust payment remittance system, Mathieu Coquillon, co-founder of Mama Money said:
“When the April lockdown hit, we saw a massive drop in remittances leaving South Africa due to the restrictions on movement to paying for money transfers and uncertainty. Remittance outflows for certain countries dropped by 90 percent. However, we’ve seen a very swift recovery since May as economic activities began to resume”.
Coquillon added that this collaboration has potential “for tapping into a broader remittance market especially for the unbanked population.”
“Innovative collaborations such as these will continue to shape global business models while enhancing customer experience and retaining their loyalty,” said Mohamed Touhami El Ouazzani, Regional Vice President, Africa, Western Union.
“It is an integration of our strengths as we continue to drive connections by enabling enterprises to scale their business offerings worldwide, leveraging our money movement platform,” added Ouazzani.
Payment remittances witnesses digital transformation
Moreover, it would aid those in urgent need of money. “With this collaboration, we are enabling customers to reach out to their loved ones in their times of need – for essentials like food and medicine to building materials for housing and school fees,” Coquillon said.
While the process of payments will become faster, the transaction fee will be cut as well. “Our average fee is around 3% but we have dynamic pricing which means if you send more per transaction the fees are reduced and can be as low as 0.1%,” said Coquillon.
Given that the region has been a hub for migrants, refugees, and asylum seekers from Africa as well as other countries according to the World Bank, it’s crucial to empower the people with the ability to remit money to loved ones in times of need.