Mobile money is one of the most amazing innovations in Africa. In its short time of existence, it has done a better job in financial inclusion than the banks ever will do in just the last 10 years.
Just to give you the understanding of how much this has impacted Africa. By 2015 there were over 400 million registered mobile money accounts which by far exceeds the entire US population. In some countries like Kenya, there were 11 times more transactions going through the mobile money networks day to day than any banks in the country by 2015. More people trust the mobile money networks than banks as points of receiving funds and payment.
Mobile money is now used by over 90% of adults in many of the countries in sub saharan Africa
Why this makes sense for Money remittance companies
As stated above, Most people in Africa trust mobile money as the first point of paying and being paid domestically. It would make sense to tap into this trust as a way of funds delivery and cost cutting. Here is why mobile money works better for money remittance companies
- It provides the scale to reach a wider scale than setting up branches
- Cheaper cost than having branches. It costs less than $1 for pay outs to mobile in most countries
The problems with Mobile money for money remittance companies
Mobile money is segmented by boundaries and telecoms. Each country has a minimum of 3 mobile money operators owned by different telecoms. This means different API integrations, Bureaucracies of dealing with telecoms, different boarder regulations only to mention but a few.
Take an example, In Uganda alone there are 3 larger mobile money provider MTN mobile money, Airtel money and Orange money. For your money remittance company to pay out to MTN, Airtel and Orange, you must have integrated with all the 3 telecoms API's, provided various approval documents which could take months to complete.
Hence the perfect solution for money remittance companies
DusuPay is going ahead to integrate with all the local mobile money networks and banks across Africa such that when a money remittance business extends to Africa. With One integration, your business can pay out to mobile money wallets and bank accounts across Africa.