Markets & Finance

US firm in pact to allow money transfers from Kenya diaspora

CASH

Foreign remittance firms are partnering with mobile money transfer services to leverage on the already developed infrastructure. PHOTO | FILE

Bharti Airtel and IDT Corporation, an American remittance company, have signed a deal that will allow Kenyans in the diaspora to directly send money through Airtel’s mobile money transfer service.

IDT Corporation, through its international money transfer service Boss Revolution, said it was targeting the large Kenyan diaspora community in the US, the biggest source of remittances.

The firm will also use Airtel Money in Niger, the other market that the firm is targeting.

“Boss Revolution customers with family and loved ones in Kenya or Niger will find it incredibly easy and affordable to transfer money directly to mobile phones utilising our new mobile money service,” said IDT Corporation senior vice president for consumer payments Alfredo O’Hagan.

Funds will also be accessed through a network of 10,000 agents that includes local banks, major supermarket chains and Total service stations.

Foreign remittance firms are partnering with mobile money transfer services to leverage on the already developed infrastructure.

MTN Group and WorldRemit, a UK-based online money transfer service, signed a deal in January that will allow workers in the diaspora to send money using MTN Mobile Money.

READ: Kenya leads Africa diaspora cash growth on mobile money

MTN said at the time that its mobile money transfer service was being used by 22.2 million customers in 16 African countries while Bharti Airtel operates in 20 African countries.

In Kenya, World Remit allows money to be sent as instant cash transfers that can be picked up from branches of All Time Capital and Ngao Credit. Users can also deposit money to all major banks and send direct M-Pesa deposits.

A World Bank report showed that 90 per cent of money transfers to Kenya on WorldRemit go to M-Pesa mobile wallets. There are also partnerships amongst mobile money transfer services to allow sending of cash within African markets.

In April Vodafone and MTN announced plans to interconnect their services.

“After successful launches in Ivory Coast and Benin in West Africa, we are looking enthusiastically at the collaboration with Vodafone in East Africa. Together, we aim to build a scalable model that will accelerate remittance roll-out across the continent,” said MTN head of mobile financial services Serigne Dioum.