Vodacom Tanzania and online money transfer service WorldRemit have partnered to enable ten million M-Pesa customers to receive money directly to their M-Pesa wallets from friends and family living abroad.
Vodacom Tanzania says the deal will allow its customers to receive international money transfers directly to their phones, without the need for a bank account or internet connection.
Using the WorldRemit app, Tanzanians living abroad in over 50 countries, including the US, UK and Canada, can send money home 24/7 in just a few taps. This saves customers time and money as they do not have to travel to a traditional money transfer agent and pay expensive fees to send money home in cash.
WorldRemit is an international money transfer platform linked to mobile money accounts and is connected to over 190 million accounts across 30 countries.
Epimack Mbeteni, Vodacom Tanzania M-Pesa Director, said: “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.
Vodacom Tanzania’s M-PESA also allows recipients to save, borrow, get overdraft services, do group savings, e-payments and many more services from Vodacom’s extensive footprint of over 106,000 M-Pesa agents across the country, as well as a diverse ecosystem of banks, businesses and merchants.
Cynthia Ponera, Country Manager for Tanzania at WorldRemit, said:“We are delighted to partner with Vodacom to further expand our network and connect over nine million M-Pesa customers to our award-winning money transfer service. Our partnership will drive down the cost of sending money to Tanzania and enable recipients in some of the most remote locations to receive money from abroad in seconds.”
According to the World Bank, migrants from Sub-Saharan Africa sent $46 billion back home in 2018, a growth of 10% compared to the previous year. Money sent back to families contributes to the sustainable growth of Tanzania’s economy, and is used for family essentials, such as healthcare, education and bills, as well as savings, investments and business ventures. The majority of money transfers to Tanzania are sent through banks, which often charge high fees and can take several days to process payments.
As WorldRemit does not have to pay charges associated with agent locations in sending countries, the company can pass these savings on to customers. According to the World Bank, the average cost of sending £120 (~ $155) from the UK to Tanzania is almost 9.5%. WorldRemit fees for the same amount start below 2%. The company is also currently offering customers zero fees on their first three transfers if they use the code 3FREE when making payment.
In addition to its mobile money service, the company also offers bank transfer, cash pickup and mobile airtime top-up to Tanzania.