RegionsAfricaPayment specialists pair up to bring new remittance service to Africa

Payment specialists pair up to bring new remittance service to Africa

Global remittance specialists Moneytrans and Remitly are making further inroads into Africa as the continent's payments sector embraces more sophisticated technology and experiences growth.

European and African payment provider Moneytrans has partnered with US-based remittance company Remitly to bring improved remittance services to the African continent.

The global co-operation agreement comes as the remittance scene in the region experiences a period of rapid growth; remittances to the Middle East and North Africa grew 9.3 percent to $53bn in 2017, driven by strong flows to Egypt, in response to more stable exchange rate expectations, according to the World Bank. The number is expected to increase further in 2018.

Through the partnership, Remitly and Moneytrans will make available 4,000 retail payout locations in 10 countries in the Middle East and North and Sub-Saharan Africa.

Digital money transfer service Remitly, which is backed by Jeff Bezos’s venture capital firm Bezos Expeditions, sends more than $6bn in annualized volume from customers principally based in the US, Canada, UK and Australia.

“Moneytrans was a natural partner choice to build up our offerings accessing to its extensive network of digital wallet providers, banks and cash pick-up networks across Africa,” said Matt Oppenheimer, CEO of Remitly.

By challenging established financial services with a transparent and technology-focused proposition, Moneytrans hopes to grow its market share across Africa.

“Moneytrans’s collaboration with Remitly is part of the company’s long-term strategy to enable interoperability and to democratize financial services in Africa. The main economic and social objective of our partnership is to help African migrants to have access to low-cost, secure and instant payment medium,” said Francisco Sanchez Apellaniz, founder and CEO of Moneytrans.

When the World Bank published its latest Migration and Development Brief in April, the report’s lead author Dilip Ratha commented: “While remittances are growing, countries, institutions, and development agencies must continue to chip away at high costs of remitting so that families receive more of the money.

“Eliminating exclusivity contracts to improve market competition and introducing more efficient technology are high-priority issues.”

Related Articles

Webinar | The Future of Bank Treasury
Upcoming

Webinar | The Future of Bank Treasury

2d
Citigroup names new treasury and trade head for Britain and Europe

Careers Citigroup names new treasury and trade head for Britain and Europe

4d Sanchari Sengupta
Open Banking paves way for globalised treasurer

Technology Open Banking paves way for globalised treasurer

5d Shannon Moyer
Embedding a treasury product mindset

Corporate Treasury Embedding a treasury product mindset

1w Anthony Wood
Video: Journeys to Treasury - looking to 2025

FinTech Video: Journeys to Treasury - looking to 2025

2w Tom Lemmon
Fides CEO prepares treasury for success in a new decade

Treasury Leaders Summit Fides CEO prepares treasury for success in a new decade

2w Carolina Lindahl
Q3 earnings affected by $12bn in FX headwinds

FX Q3 earnings affected by $12bn in FX headwinds

2w Jeremy Chan
Blueprint for financial strategy part three: measuring value

Financial Planning & Analysis Blueprint for financial strategy part three: measuring value

3w Ben Walters

Whitepapers & Resources

Transaction Banking Survey 2019

Transaction Banking Survey 2019

5m
TIS Sanction Screening Survey Report

Payments TIS Sanction Screening Survey Report

8m
Enhancing your strategic position: Digitalization in Treasury

Payments Enhancing your strategic position: Digitalization in Treasury

9m
Netting: An Immersive Guide to Global Reconciliation

Netting: An Immersive Guide to Global Reconciliation

1y