MFS Africa, the Pan-African fintech company and largest aggregator of mobile wallets in Africa, announced that its first East African xP2P corridor has now opened between MTN Uganda and MTN Rwanda. As of last week, MTN Mobile Money users in Rwanda are now 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 subSaharan Africa, enabling convenient and affordable mobile-to-mobile international money transfer (“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 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.
About MFS Africa - MFS Africa is a pan-African fintech company that develops innovative solutions that add functionality and value to mobile wallets. The company works in close partnership with mobile network operators and financial institutions to bring simple and relevant financial services to un- and under-banked customers. MFS Africa currently connects over 55 million mobile wallet customers in sub-Saharan Africa through partnerships with MTN, Vodafone, Safaricom, Airtel, Orange, Tigo, and others. MFS Africa Hub also connects money transfer organizations (MTOs) to mobile wallets in Africa, allowing MTOs to take advantage of the growing popularity of mobile wallets as safe, convenient, compliant, and cost-effective delivery channel for international remittances. For more information, please visit .