Approximately three percent of Africa’s population lives and works outside their home countries. A majority of these migrants send money back to their home countries, to family and friends. Over the years, remittance has proven to be a major source of livelihood for most households in African countries. The income acquired through remittance is used to provide shelter, clothing, food and a variety of other basic needs. Besides financially empowering the receiving households, remittance also benefits the economy of a government.
Africa, being one of the regions that receive the highest amounts of remittance, has been on the frontline of enhancing the entire remittance scene through technology and innovation. The achievements in this part of the world have been pretty significant and provide a template for the rest of the world to follow.
Streamlined Money Transfer Services
One of the ways through which Africa has enhanced remittances is through the streamlining of money transfer services. Over the past couple of years, the money transfer sector has received some major advancements that continue to make it easier for migrants to send money back home. An example of such developments is the advent of mobile money transfer services.
Africa has played a key role in the development and advancement of mobile money services. It also remains one of the leading regions in terms of quality and access of mobile money transfer services. The advent of online money services has contributed greatly to the enhancement of the remittance sector due to the various advantages attached to it.
Mobile Money Transfer is Affordable
One of the advantages of mobile money transfer services is the fact that they are relatively affordable. As compared to most of the other cross-border money transfer services, mobile money offers an affordable option to send money both within and without the borders. This makes it possible for the migrants to make remittances back home without worrying about high costs. The rest of the world has definitely seen the advantages of transferring money through mobile networks in relation to cost of remittance and are currently working on enhancing mobile money infrastructures. Asia and Europe, for instance, are fast adopting the use of mobile money services.
The speed of remittance is another benefit of mobile money transfers which can be used as an example by the rest of the world. Before the introduction of these services, cross-borders transfers typically lasted not less than three days. This has however been transformed through mobile money services. Africa has spearheaded the speeding up of remittances. Other regions are finding the speed of delivery of money impressive and are highly likely to borrow a leaf from Africa.
Afrimarket is another creative method of money transfer that Africa uses to make remittances to their loved ones back home. The services allows remitters to make purchases of groceries, fish and various other products and have them delivered to their beneficiaries. Afrimarket’s cash – to – goods services have been vital to the improvement of remittance to Africa.
If the rest of the world can adopt the template provided by Africa on creative money transfer and remittances, the entire sector is bound to benefit considerably.
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About TerraPay: TerraPay is the world’s first mobile payments switch – a B2B transaction processing, clearing and settlement service for mobile wallets. Our best-in-class technology serves as the interoperability engine that enables our partners’ customers to send and receive real-time transactions across diverse payment instruments, platforms and regions.