WorldRemit has expanded its service in Uganda to enable customers to transfer money to mobile wallets. The global online money company, which recently secured a $40 million investment from Accel Partners, will provide this new service to increase the pay-out options available to customers sending money to Uganda. Up until now, customers have been able to send money to the country using cash pickup, bank deposit and airtime top-up services.
The mobile wallet service enables recipients to receive money quickly and securely on their mobile phones via MTN Mobile Money. Once they have the money, customers can use their mobile wallets for many purposes, such as paying utility bills, buying airtime or withdrawing cash from authorised agents.
Uganda is one of Africa’s top recipients of remittances. According to the World Bank, $733 million of remittance payments were sent to Uganda through formal channels in 2012, amounting to 3.7 per cent of the country’s GDP.
With one of the highest mobile phone penetrations in Africa, Uganda has seen rapid growth of mobile money transfers and airtime top up. Currently, 35 per cent of WorldRemit’s transactions to Uganda are going to mobiles, but the company expects this figure to reach up to 80%.
WorldRemit, with its online-only, cashless business model, offers a more efficient, affordable and transparent remittance alternative to traditional money transfer operators. Customers can send funds from 35 countries to families and friends in over 100 destinations, all from the privacy and convenience of their own home. All they require is Internet access, eliminating the need to take time off to visit an agent location.