New mobile-to-mobile remittance service to be launched in East Africa
Cross border mobile money is "a milestone" for the economy, according to an analyst.A new international mobile-to-mobile remittance service will allow customers around the world to send money instantly via mobile phone to users in Rwanda, Uganda and Zambia.
WorldRemit, an international mobile money transfer company, has partnered with mobile operator MTN to launch the service, available through the WorldRemit app, which is already live in Uganda.
"Together with MTN, we make sending money home as easy as sending an instant message," said Alix Murphy, analyst at WorldRemit, quoted by The Independent.
Stephen Kaboyo, from financial advisory firm Alpha Capital Partners, told the newspaper that the cross border mobile money is "a milestone" for both the economy and the ICT industry.
"It will make it convenient to send money across borders and this in turn will facilitate remittances and enhance financial inclusion which has eluded our markets. This service will drive commerce in the region and promote economic growth," he said.
Remittances to Sub-Saharan Africa have reached $33 billion (€30 billion) in 2015, as the remittance market is fast adopting mobile money as an effective means of money transfer, according to WorldRemit. It said half of the 261 mobile money service providers across the globe are in sub-Saharan Africa.