The service, which is slated to debut in Madagascar, will see funds from all around the world pass through payment rails provided by MFS Africa, one of the continent's major payment gateways.
MFS Africa's digital payments network connects over 400 million mobile money wallets, 200 million bank accounts across Africa, and over 200,000 agents in Nigeria, enabling cross-platform and cross-border payments for remittance companies, mobile network operators, banks, non-bank financial institutions, and global merchants.
The collaboration between MFS and Western Union aims to provide customers, companies, and Global Development Organisations with accessible payment choices across Africa, increasing integration between the continent and the rest of the globe, and extending financial inclusion across Africa.
MFS Africa received an additional USD 100 million in equity and debt finance in June 2022, backed by Admaius Capital Partners. The Series C extension investment round brought the African company's total capital to USD 200 million.
MFS Africa had an eventful year. In June 2022, it purchased American IT firm Global Technology Partners (GTB) to broaden its services to the continent's growing gig economy, travel sector, and millions of potential other clients who utilise cards to make digital payments. Moreover, by linking with established card scheme ecosystems like as Visa and Mastercard, MSF Africa will expand its bank and fintech customer base and enable tokenization for the mobile money world.
Subsequently, it collaborated with ThetaRay to safeguard its network against financial crimes as it expanded abroad. ThetaRay provides MFS Africa with its SONAR SaaS solution, which includes AI-supported AML transaction monitoring and sanctions list screening, as part of the agreement, allowing it to stay ahead of complex and emerging financial crime typologies and increase growth opportunities with a trusted and secure service.
It began a new collaboration, this time with Ripple, in November to obtain access to its on-demand liquidity (ODL) crypto solution. MFS Africa will be able to leverage Ripple's on-demand liquidity to simplify real-time mobile payments for consumers in 35 countries as a result of the cooperation. Representatives from Ripple stated that the agreement will increase financial inclusion in Africa since ODL can assist markets that frequently suffer from liquidity sourcing.
The importance of remittances from outside African economies is commonly stated. The continent receives an estimated USD 95.6 billion each year, making it one of the most important sources of foreign money. African banks fight for this massive market with global money transfer providers, mobile money operators, and, increasingly, fintech enterprises.
An estimated 160 million Africans have left the continent to live and work in other areas of the world. The money they send back to Africa via traditional banks, money transfer firms, and fintech operators account for 2-3% of Africa's GDP and supports an estimated 200 million relatives' living needs.
A high majority of Africans working abroad are in a good position to send money back to family members to pay short-term food, health, and education expenses. According to the US Migration Policy Center, Sub-Saharan Africans in the US are more likely to be employed and educated than the typical foreign worker, with 40% holding university degrees compared to 32% of the whole US population.
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