MFS Africa, the Pan-African fintech company and largest aggregator of mobile wallets in Africa, announced today that it has launched its xP2P mobile-to-mobile remittance service from MTN Rwanda to MTN Uganda. As of last week, MTN Mobile Money users in Rwanda are able to send money to Uganda seamlessly and affordably through the MFS Africa Hub. The Hub connects mobile wallet customers across networks and countries in sub-Saharan Africa, enabling convenient and affordable mobile-to-mobile international money transfer, also known as xP2P.
The World Bank estimates that over $160 million is sent from Rwanda to Uganda each year in remittances, through formal and informal channels. Formal channels such as banks and traditional money transfer companies can take days and charge exorbitant fees, while informal money traders and couriers carry high levels of risk and uncertainty. As such, current costs of transfers to Africa average 12%, and transfers between African countries cost on average 20% - compared to a global average of 8%. In contrast, transfers through mobile money are instantaneous, secure, traceable, and dramatically cheaper.
“The MFS Africa Hub is bringing inter-operability to mobile money platforms – across borders as well as across networks. We’re excited to take this step with MFS Africa towards regional integration,” said
Serigne Dioum, Head of Mobile Financial Services at MTN Group.
“We are excited to extend our xP2P service to East Africa with our long standing Partners MTN Rwanda and MTN Uganda,” said Dare Okoudjou, founder and CEO of MFS Africa. “We look forward to opening up more xP2P corridors in the region to enable more people and businesses to send money across borders at a fraction of current costs; we remain confident that we will achieve our goal of reducing intra-African remittances costs to a single-digit rate by the end of the decade.”
About the MTN Group
Launched in 1994, the MTN Group is a leading emerging market operator, connecting subscribers in 22 countries in Africa, Asia and the Middle East. The MTN Group is listed on the JSE Securities Exchange in South Africa under the share code: “MTN.” As of 30 June 2015, MTN recorded 231 million subscribers across its operations in Afghanistan, Benin, Botswana, Cameroon, Cote d’Ivoire, Cyprus, Ghana, Guinea Bissau, Guinea Republic, Iran, Liberia, Nigeria, Republic of Congo (Congo-Brazzaville), Rwanda, South Africa, Sudan, South Sudan, Swaziland, Syria, Uganda, Yemen and Zambia. Visit us at www.mtnbusiness.com and www.mtn.com. Contact: Samantha Moodley on +27 083 212 9434 or firstname.lastname@example.org