In a significant move to address the high cost of remittances in Africa, several fintech companies have formed strategic partnerships to enhance cross-border payment systems. These collaborations aim to make money transfers more affordable, efficient and accessible for millions across the continent.
TerraPay and Bill: Enhancing Remittance Infrastructure
British International Investment (BII) has committed a $20 million loan to TerraPay, a global cross-border payments processor. This investment is intended to support over $1 billion in annual remittance transactions into Africa, focusing on reducing costs and improving reliability. TerraPay’s platform connects traditional money services like M-Pesa, MTN Mobile Money and Airtel Mobile Money, facilitating real-time, lower-cost digital transfers.
MFS Africa And PaySii: Expanding Mobile Wallet Access
MFS Africa, a leading digital paymenyts network, has partnered with PaySii to extend remittance services to mobile wallets in countries including Nigeria, Ghana, Uganda and Ethiopia. This collaboration leverages MFS Africa’s extensive network which connects over 200 million mobile wallets across 35African countries to provide fast, secure and cost-effective money transfers.
M-PESA And Onafriq
Safaricom’s M-PESA has signed an International Money Transfer Agreement with Onafriq to facilitate remittances to Ethiopia. This partnership enables Ethiopians to receive funds through M-PESA without the need for a bank account, promoting financial inclusion and supporting the country’s digital transformation strategy.
Access Holdings And M-PESA
Access Holdings has joined forces with M-PESA, Coronation Grouo and Safaricom to streamline remittance services between East and West Africa. This collaboration focuses on enhancing money transfer convenience in key markets such as Nigeria, Ghana, Kenya and Tanzania thereby promoting financial inclusion across the continent.
Mastercard And Paypay
Mastercard has partnered with Paypay, a fintech innovator in Angola, to integrate Mastercard’s technology with Paypay’s platform. This collaboration aims to provide secure, swift and efficient remittance services across Africa aligning with Mastercard’s goal of bringing one billion people into the digital economy by 2025.
