Vodacom Tanzania -- a leading cellular network company -- has partnered with WorldRemit -- an online money transfer service -- to enable M-Pesa's mobile phone-based microfinance service customers to receive money sent from abroad directly in their M-Pesa wallets.
Similarly, last week, Visa -- a multinational financial company -- and MFS Africa -- a digital payment hub -- announced their partnership that will help bridge the gap between mobile money and the online digital payments ecosystem in Africa.
A report has it that the partnership will enable Tanzanians living abroad to conveniently send money home and recipients will be able to receive such transfers on their phones directly without needing a bank account or Internet connection.
With the WorldRemit app, Tanzanians in over 50 countries, including the US, UK, and Canada, will be able to send money home every day of the week in just a few minutes. WorldRemit claims that this will save customers time and money as there won’t be a need for traditional transfer agents and senders won’t have to pay too much to send money home.
According to the World Bank, in 2018, migrants from sub-Saharan Africa sent $46 billion back home, and compared to the previous year, it grew by 10%. The money transferred home plays a part in the growth of Tanzania’s economy as it is used for family essentials such as healthcare, education, and bills, as well as savings, investments, and business ventures.
Furthermore, most of the money sent back to families is through banks, which often charge high fees and can take several days to process payments. However, WorldRemit does not have to pay charges related to agent locations in sending countries as the company can pass these savings on to customers.
The Vodacom Tanzania M-Pesa Director, Epimack Mbeteni, said in a report that, “This new partnership with WorldRemit enables us to tap into their global payments network, and help customers receive remittances into Tanzania from more countries around the world. It will enable families and friends in the country to conveniently receive money through M-Pesa from across the world. This is just one more way we are making our customers’ lives easier.”
Mbeteni further said that when recipients receive money in their M-Pesa accounts, they can use it for economic and development activities such as savings and loans, overdraft services, group savings, e-payments, and many more services offered by Vodacom.