Kenya’s leading mobile service company Safaricom, has taken mobile money a notch higher and is now going global after signing a deal that will see users of MoneyGram send cash directly to M-Pesa customers from any part of the world.
The telcos major shareholder Vodafone, signed the deal expected to serve in about 200 countries this coming after it emerged Safaricom was on the verge of signing a similar agreement with UK-based online payments and cash remittances company Skrill, which has capacity to handle transactions and money transfers in 41 currencies.
The move is definitely going to be a success to the 7 year old platform that is already dominant in Kenya and neighboring regions. Diaspora remittances have been a main source of commissions income for commercial banks.
Remittances from Kenyans working abroad are the fourth-largest source of foreign exchange after a rise by 10.2 per cent last year to sh 111 billion. “There is huge demand for sending funds back to family and friends,” said Michael Joseph managing director in charge of mobile money at Vodafone.
The details on the deal have not been publicized though set to launch in June with the agreement to further the goal of joining with fast and reliable mobile wallets so consumers may send money for life’s essentials conveniently.
The pace set by Safaricom lies a challenge to rival mobile money companies weeks after it declined a request by YU and Airtel to share agents.