Payment transfer platforms GIMAC and Terrapay have signed an agreement to enable cross-border transfers to bank accounts and mobile wallets in the Economic and Monetary Community of Central Africa (CEMAC).
The agreement will mean users across the world can make real-time payments to recipients in Cameroon, Republic of Congo, Gabon, Equatorial Guinea, Central African Republic and Chad.
GIMAC plans to establish the regulatory and security framework of the remittance ecosystem, as well as to enhance interoperability between banks, public treasuries, postal and micro finance institutions, and electronic money transmitters in the region.
According to a March 2018 World Bank report, within the CEMAC region borrowing from an informal lender is more common than borrowing from a financial institution. At present less than 10% of the region’s population has a credit card, uses mobile accounts, or uses electronic means to make payments.
The IMF has recommended that technologies such as mobile and internet banking, electronic signatures, biometric identification and mobile money transfers should be promoted in the region to facilitate trade.
“TerraPay’s collaboration with GIMAC is part of the company’s long-term strategy to enable interoperability and to democratize financial services in Africa,” said Ambar Sur, founder and CEO of Terrapay. “The main economic and social objective of our partnership is to help the migrants of the CEMAC area have access to a low-cost, secure and instant payment medium.”
“Through this partnership, GIMAC will contribute to the reduction of transfer costs and the improvement of the quality of life of many in CEMAC,” said GIMAC CEO Valentin Mbozo.