Mama Money, South Africa’s money transfer firm has expanded its money transfer service into Nigeria, Ghana and Tanzania and is eyeing expansion into Mozambique, Malawi and Kenya by April this year.
The firm also plans to expand out of Africa later this year.
According to Mama Money co-founder, Raphael Grojnowski, “Our platform, software and service solutions are developed for African and emerging economies where the rise and growth of mobile money is coupled with increasing demand for affordable legal money transfer. Mama Money has developed a sophisticated platform capable of processing money transfers reliably and securely.”
Mama Money’s technology and innovative social business model cemented its market position as an inexpensive and trustworthy money transfer operator for the SA-Zimbabwe corridor. This experience provided a solid launch pad to extend Mama Money into other countries.
The firm is now banking on its cost and trust as its biggest differentiators as its fees are charged on a sliding scale with a maximum fee of 5% – dramatically less than the industry average of 12%. There are no clearance periods or delays. Exchange rates and commission fees are completely transparent.
In South Africa, Mama Money has over 650 agents and PEP as its primary retail partner allowing users to transfer at any of its retailer partners which at 32 000 cash-in points or via bank transfer using a computer or mobile phone.
In Zimbabwe, through Mama Money’s integration with financial institutions we are reaching 6 million mobile wallets and 2 million bank accounts.
Mama Money is a gold member of AlphaCode, a Rand Merchant Investments (RMI) club for fintech startup entrepreneurs.
“MamaMoney’s rapid expansion is testament to its ability to service a fundamental need of migrant workers in South Africa. We are making significant strides in the area of financial inclusion by lowering the costs of financial services. It has a real impact on real people’s lives,” said RMI’s senior investment executive and head of AlphaCode, Dominique Collett.
Mama Money is licensed by The South African Reserve Bank, so people do not need a bank account or a SA ID document to use it. No smartphone or internet is required – the platform can be accessed without airtime.
At the moment, Mama Money is with 25 biggest banks in Nigeria and VKash, a mobile wallet. While in Ghana, it’s working with MTN Mobile Money and Airtel Money. Vodacom M-Pesa, EzyPesa and Airtel Money are its launch partners in Tanzania.