Vodacom M-Pesa customers to receive money instantly from over 50 countries worldwide using the WorldRemit app.
Vodacom Tanzania PLC has partnered with leading online money transfer service WorldRemit to enable over 10 million M-Pesa customers to receive money directly to their M-Pesa wallets from friends and family living, working or travelling abroad.
The new service increases convenience for money transfer recipients in urban and rural areas as they can receive money from relatives and friends abroad directly to their phones, without the need for a bank account or internet connection.
WorldRemit is a global leader in international transfers to mobile money accounts and is connected to over 160 million accounts across 29 countries. In addition to its mobile money service, the company also offers bank transfer, cash pickup and mobile airtime top-up to Tanzania.
Vodacom Tanzania M-Pesa Director Epimack Mbeteni said: “This new partnership with World Remit enables us to tap into the remittances coming into Tanzania every year, It will increase the ease and ability for families and friends in Tanzania to receive money through M-Pesa from across the World and benefit from our extensive footprint of over 106,000 M-Pesa agents across the country plus our diverse ecosystem of banks, businesses and merchants connected to M-Pesa. This is just one more way we are going to enrich our customers’ lives’
According to the World Bank, African Immigrants sent a $38 billion back home in 2017 and are forecast to hit around $39.6 billion this year. Money sent back to families is used for development and other economic activities. World remittances to Tanzania are mostly done through the bank which poses a challenge in terms of transfer fee, identification process and time spent to get the money.
“This partnership offers an easier and cheaper alternative to receiving cash from abroad by cutting the transaction process meaning families receive more of the money straight into their M-Pesa wallets and can use it for development and other economic activities such as savings & Loans, Overdraft services, Group savings, E-payments and many more Vodacom” added Epimack.
Through WorldRemit Tanzanians living abroad in over 50 countries, including the US, UK and Canada save time and money as they do not have to travel to a money transfer agent and pay expensive fees to send money home. Instead, they can send funds online at any time using the WorldRemit app or website.
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.
On her side, WorldRemit’s Regional Director for East and Central Africa Sharon Kinyanjui said that the move will reduce sending charges, “the launch of MPESA and WorldRemit partnership will reduce the sending fees for countries like US, UK, Sweden and South Africa as all transactions are digital,” she said while adding that WorldRemit is committed to affordable rates.
Cynthia Ponera, Country Manager for Tanzania at WorldRemit, said: “Our money transfer service to Tanzania is growing by over 100% year-over-year, and mobile money is our most popular way to send money to the country.
“We are delighted to partner with Vodacom to further expand our network and connect over 12 million M-Pesa customers to our award-winning money transfer service. Our partnership will drive down the cost of sending money to the country and support financial inclusion initiatives by giving recipients in some of the most remote locations access to formal money transfer services.”
For more information on how to send money to Tanzania, click here.