Kenyan mobile phone-based money transfer service M-Pesa has announced plans to launch a direct remittance feature that will enable global customers to send funds directly.
The feature promises to revolutionize the remittance landscape by eliminating the need for third-party services.
Speaking on the launch of the remittance feature, at the Future of payments in East Africa roadshow, Reuben Simiyu, Manager of Global Acceptance at M-PESA Africa said, this initiative is part of the company’s vision, aimed at serving its millions of Kenyan customers better. He noted that currently, M-Pesa does facilitate for remittances to Kenya, but does this through integration with other financial services such as PayPal, and Wise, amongst others.
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Mr Simiyu described the journey of M-PESA Africa and its purpose to continuously drive financial inclusion across. He revealed that the launch of M-Pesa Virtual Visa card, a virtual card that enables M-Pesa users to make payments to international online sites for goods and services, was pushed by global merchants’ sites’ insistence on card services.
Meanwhile, the date for the launch of the direct remittance feature was not disclosed, hence, once it is rolled out, Kenyans abroad with M-Pesa can send money straight to their friends and family using M-Pesa wallets.
M-Pesa’s proposed launch of a direct remittance feature marks a significant shift in the realm of financial transactions. This innovation promises to revolutionize the remittance landscape by eliminating the necessity for third-party services. With this advancement, users will experience streamlined and more efficient transactions, cutting down on costs and potential delays associated with intermediaries.
By providing a direct channel for remittances, M-Pesa aims to enhance convenience and accessibility for its users, ultimately transforming the way people send and receive money across borders.
According to World Bank data, the remittance market in low and middle-income countries grew by 5% to reach $626 billion in 2022. With global remittances set to reach $5.4 trillion by 2030, M-Pesa wants to grab a piece of the pie.
The platform has made financial services accessible to millions of people who previously lacked access to traditional banking services, and has transformed how people in Africa handle their money. Last year, M-Pesa’s parent companies Safaricom and Visa launched the ‘M-Pesa GlobalPay’ virtual card that enables customers to use M-Pesa to shop at more than 100 million merchants across 200 countries for the first time.
Notably, M-Pesa wants to be the platform of choice for Africans in the diaspora, sending billions back home. This approach will see the payment platform build on its existing expertise and relationships while leveraging the knowledge and resources of local partners to ensure a smooth roll-out of its direct remittance feature.