Nigeria's Fintech partners MFS Africa on cross-border remittance market

shakirudeen taiwo

June 7, 2017 4:33 PM

In 2016, Nigerians in diaspora sent home $35 billion (N10.68 trillion) for various economic purposes while total remittance for 2015 was estimated at $20.77 billion (N6.3 trillion).

Remittance

One of Nigeria’s leading Fintech startups, Paga has announced a new partnership with MFS Africa to strengthen its entrance into the cross-border remittance market.

Paga recently signed similar partnership deals with TerraPay and Monet Trans to facilitate easy transfer of money between Nigeria and other countries in the six continents of the world.

The partnership deal is aimed at creating platforms which allows the connection of Paga accounts and other Nigerian bank accounts to remittance senders around the world, as well as reducing the cost of transferring money across the world.

Remittance is the money sent to a country from other parts of the world. In recent time, remittance has been noted a major source of foreign exchange inflows into the country.

Speaking on the partnership between Paga and MFS Africa, Jay Alabraba, Director of Business Development of Paga noted that: “Together with MFS Africa, Paga is linking millions of mobile wallet users and bank account holders for seamless transactions across networks and across borders.”

He further stated that the partnership deals is also at minimizing the cost of remittance operations for the two organisation.

The cost of money transfers in between Africaand the globe and intra-Africa countries was estimated at an average of 20% of total remittance, a figure which is very high when compared with 7% global average.

The CEO of MFS Africa, Dare Okoudjou said:“For the last few years, everyone has been looking to the Nigerian market, wondering when and how mobile money would take off.”

“We’re excited to finally welcome Nigeria onto the MFS Hub with Paga, and to connect more and more of our mobile network and money transfer operator partners to Paga’s users,” Dareadded.

With this partnership,Pagawallet holders will be to receive transfers from other mobile money users across Africa, or from any money transfer operator connected to the MFS Hub.

shakirudeen taiwo

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