Through the partnership, WorldRemit will have access to a potential 100 million customers that use the China-based company’s banking platform. The deal will also help Huawei secure a larger market share in Africa, where mobile money transfer services are popular due to scarce banking infrastructure. All carriers that are Huawei partners would be able to use the service, the two companies said in a statement.
Although remittance flows to Sub-Saharan Africa reached USD33 billion in 2016, according to The World Bank, it continues to be one of the most costly regions to send money to, says WorldRemit. It costs a sender 9.8% in fees to send USD 200 to a receiver in Africa as of Q1 2017, up from 9.7% in Q1 2016.
Digital payments through mobile services can help boost the flow of remittances and reduce costs. Online payments also eliminate the need for the sender to travel to an agent to send funds back to family or friends.
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