The world’s cheapest online money transfer service, which operates a unique ‘pay-what-you-want’ model, where customers decide the fees, will expand its international reach by launching new integrated mobile wallet routes across key African countries – Tanzania and Burkina Faso.
As part of the company’s Africa expansion, Xendpay will also add Nigeria to its portfolio of new currencies to bank accounts.
Customers will be able to remit money seamlessly and cost-effectively through Xendpay’s mobile wallet delivery method to Tanzania in East Africa and Burkina Faso in West Africa, through a series of strategic tie-ups with two of Africa’s biggest fin-tech MNO (Mobile Network Operators) providers, M-Pesa-Vodafone (Tanzania) and Air Tel Money (Burkina Faso).
A Mobile Wallet is a simple way to make payments and manage your money with your phone. Recipients can use the money in their mobile wallet to directly pay at local shops and businesses which are enabled to accept mobile money payments, and therefore, remove the risk of having to sometimes carry large sums of cash around with them.
In addition to Xendpay’s activities in Tanzania and Burkina Faso, the company will also add Nigeria to its portfolio of new currencies to bank accounts in partnership with NGN.
Xendpay clients will be able to take advantage of their “pay what you want” business model and send Nigerian Naira on a real time credit basis. Xendpay can receive funds from remitters via a number of methods, including by bank transfer from most EU countries.
Available online and via both iOS and Android, Xendpay allows users to send money to bank accounts and mobile wallets in over 180 countries and 48 different currencies around the world. Due to its innovative “pay-what-you-want” business model, Xendpay is predicting that it can save customers $100m (£60m) million in fees over the course of the next five years.
International remittances are a major and stable source of income for people in many developing markets. One in seven Africans (120 million) receive remittances from friends and family abroad, representing USD 60 billion and accounts for as much as a third of total GDP2 in some African markets. Already a major player in the global money remittance industry, Xendpay’s Africa activities will allow it to further facilitate borderless and cost-effective money remittance flows into a region that is perceived to have some of the highest costs associated with the large volume of remittance traffic. In fact, the cost of sending money within Africa is the second most expensive in the world with rates reaching as much as 19% for every $200 remitted.
According to the World Bank, in 2015 Nigeria saw $21 billion remittance inflows; Tanzania saw $400 million; and Burkina Faso handled $21 million . The fact Tanzanian remittance inflows totalled $10m in 2011 demonstrates the incredible growth of the industry within the region.
Rajesh Agrawal, CEO & Founder of Xendpay, says: ‘Money remittance is one of the main sources of FDI for many developing countries; it fuels economic growth, can enhance political stability and is a key tool for international development. Through Xendpay’s new mobile wallet routes for Tanzania and Burkina Faso, and by adding the Nigerian Naira to our new currencies portfolio, we hope to make money remittance into and out of Africa easier, more transparent and cost-effective.’