PayPal’s money transfer service, Xoom customers in the US, UK, Canada and Europe can now send money transfers directly to mobile wallets in key markets across Africa.
This service will allow customers send money to mobile wallets in Kenya, Cameroon, Ghana, Madagascar, Malawi, Mozambique, Rwanda, Tanzania, Uganda, Zambia, and Zimbabwe.
Mobile money services are being deployed rapidly across emerging markets as a key tool to further the goal of financial inclusion.
According to the 2019 GSMA, State of the Industry Report , the number of globally registered mobile money accounts surpassed the one billion mark in Africa.
This money transfers service expands Xoom’s offerings in Africa as the current service already enables money transfers for cash pick-up, direct banks deposits and mobile reloads to 41 countries in Africa.
“Sending money to Africa through traditional channels has always been expensive. We wanted to help bring down the cost and speed up the process to boost financial inclusion,” said Julian King, Vice President and General Manager, Xoom.
The cost of sending money through traditional channels to Africa is one of the most expensive in the world, with an average cost of 9.3 percent.
The cost of sending $200 to the Sub-Saharan African region averaged 9 percent in 2018 and in the southern African subregion, the average cost was 18.7 percent, almost three times higher than the global average according to the World Bank.
A pioneer in digital remittances, Xoom is a fast and secure way to send money, pay bills and reload phones for loved ones in over 160 countries globally.
The largely cash-based system of sending money across borders can be full of paperwork, high fees, standing in line and an ever-present uncertainty of when, and if, the money will arrive when it’s needed.
By providing fast and secure payment options for customers to seamlessly send money across borders by going online or using a mobile device, PayPal and Xoom are helping to expand and improve the financial health of millions of people worldwide.