WorldRemit lowers transaction rates for Africa remittances

WorldRemit. [Photo: courtesy]

WorldRemit, a world-renowned digital payments company has lowered its transaction rates for international money transfers to 450 corridors in Africa.

This is good news to Kenyans in the diaspora, mostly in the US and Europe who send back home billions of shillings to relatives and families.

The latest reduction in transaction costs by WorldRemit accounts for the biggest drop ever in the company’s history.

WorldRemit, a British owned firm in August okayed a plan to buy Africa-centred app-based remittance company, Sendwave.

According to an insider aware of the sale, the buyout is worth more than $500 million both in cash and stock deal.

Also read: Sendwave acquired by WorldRemit in a $500 Million deal

WorldRemit affirmed to support the sending of money to Africa from the diaspora community.

In 2019, World Bank indicates, the diaspora community sent Ksh5.28 trillion to Africa while in the last one year ending October 2020, Kenyans in the diaspora sent Ks329.5 billion.

WorldRemit’s managing director for Middle East and Africa Sharon Kinyanjui said that: “This initiative will ensure customers are able to access value even as Covid-19 has financially affected those in both the diaspora and at home.”

Sam Talukdar, director of pricing at WorldRemit added: “One of our goals is to accelerate financial inclusion by reducing transaction costs to Sub-Saharan Africa, which remains the most expensive region for remittances.”

The global payments company enables senders in 50 countries to send money via its app or website to recipients in over 150 countries, where they can choose from multiple payout methods including bank deposits, Mobile Money, mobile airtime top-up, and cash pick-up.

You can send money via WorldRemit app on mobile phone. The company has asked existing customers to update their apps in order to enjoy the discounted rates.

WorldRemit Chief Executive Officer Breon Corcoran told Bloomberg that he is optimistic the company’s shift to digital banking will be permanent after the acquisition of Sendwave.

“What we saw immediately after lockdown orders is a real acceleration toward digital with the rate of new account activations more than doubling this year,” he stated.