MoneyGram seeks outward transfers of cash from M-Pesa
Safaricom CEO Bob Collymore (left) and MoneyGram boss Pamela Patsley sign a partnership deal in Nairobi November 5, 2014. PHOTO | COURTESY
What you need to know:
Safaricom and MoneyGram are eying cross-border transfers such as Kenyans who pay school fees and upkeep for their children studying abroad, or to settle trade deals.
The international remittance market opens a new revenue front for both Safaricom and MoneyGram.
The partnership deal signed Wednesday allows MoneyGram customers in over 90 countries to send money directly to Safaricom’s M-Pesa wallets.
Texas-based money transfer firm MoneyGram is eying remittances through M-Pesa after signing an agreement with Safaricom to allow Kenyans in the diaspora to send money through the mobile money service.
The world’s second-largest money transfer company said it was working on a deal which would allow seamless transfers to and from M-Pesa, enabling direct remittance of cash to its network of over 200 countries around the world.
“Right now you can only receive money from MoneyGram through M-Pesa. The next natural step will be to allow the send function (directly from M-Pesa to international recipients),” said Pamela Patsley, MoneyGram’s CEO.
Safaricom and MoneyGram are eying cross-border transfers such as Kenyans who pay school fees and upkeep for their children studying abroad, or to settle trade deals.
“Our mission is to help people send money to their families and friends for emergencies, celebrating big moments and providing for life’s essentials,” said Ms Patsley at the launch of the MoneyGram–M-Pesa deal in Nairobi.
Currently, Kenyans can only send money through the MoneyGram channel using partner financial institutions such as banks and licensed money remittance providers.
The Central Bank of Kenya (CBK) does not capture data on outward remittances, but locations with significant Kenyan student populations offer a ready market for cross-border mobile-based transfers.
There are sizeable Kenyan student populations in countries such as Uganda, India, the United Kingdom, Australia, Malaysia and the US.
“Safaricom is also in the process of complying with regulations that will enable it to participate in outbound remittance,” said Nzioka Waita, Safaricom’s director of corporate affairs.
The international remittance market opens a new revenue front for both Safaricom and MoneyGram.
Tanzania’s Tigo Mobile in February launched the region’s pioneer cross-border mobile money remittance service between Tanzania and Rwanda, with plans to expand to other markets.
The partnership deal signed Wednesday allows MoneyGram customers in over 90 countries to send money directly to Safaricom’s M-Pesa wallets.
MoneyGram remittances to M-Pesa have been capped at $800 (Sh71,200) per transaction to comply with CBK regulations which limit the volume per transaction at Sh70,000.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
