Telecom records huge growth in money transfers

07Dec 2017
The Guardian Reporter
The Guardian
Telecom records huge growth in money transfers

TANZANIANS abroad remit over US$25 million through mobile phone transactions annually using the WorldRemit app or website, new data reveals.

Tigo Chief Officer, Mobile Financial Services, Hussein Sayed

As a result, WorldRemit and Tigo Tanzania are seeing a rapid growth of money transfers to mobile money accounts in Tanzania.

The telecom’s mobile money service has emerged as WorldRemit’s fastest growing payout method in the country just over two years after the two companies joined forces.

The service lets Tanzanians in over 50 countries send remittances to all Tigo’s mobile money accounts, instantly. Account holders are then able to re-send money domestically, buy top ups, pay bills, or simply cash out through Tigo’s extensive agent network.

With Tanzania recently named among the most expensive destinations in Africa to send remittances to, the popular service is bringing down the cost of money transfers while making the process considerably safer and faster.

Remittances play an important role in Tanzania’s economy. In 2015 the country received over US$400 million in inward remittances flows, according to the World Bank.

WorldRemit’s mobile-first, digital model on the send side allows hard working migrants to send money in a few taps directly from their phones - without the need to visit or stand in line at a bricks and mortar agent.

The company accounts for 74 per cent of all remittances sent through international money transfer operators to mobile money services.

Andrew Stewart, WorldRemit Regional Head for Middle East and Africa said: “Our partnership with Tigo provides more choice to millions of Tanzanians living and working abroad, giving them a simple, safe way to support their friends and family without having to wait in line at a money transfer agent.”

“A Tanzanian migrant in London, Stockholm or Sydney can now send money back home instantly - supporting the transition from costly offline remittances sent from bricks and mortar agents to faster, safer and lower cost online transfer methods,” he added.

Tigo Chief Officer, Mobile Financial Services, Hussein Sayed added: “We are dedicated to delivering the full range of financial services to our customers. As part of our financial inclusion objective, we look to cater not only for the market within the Tanzanian borders, but all Tanzanians. Accordingly we are taking all possible steps to provide our customers with convenient and secure channels for international remittance.

Globally, WorldRemit customers now complete 750,000 transfers every month from over 50 send countries to 148 receiving destinations.

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