Online mobile money transfer service, WorldRemit has called on regulators to unconditionally block the acquisition of MoneyGram by Western Union.

This follows reports that Western Union, the world’s largest money transfer service is allegedly in early talks to acquire its largest rival, MoneyGram.

WorldRemit said however, that it fears if the deal is approved, it would create a monopoly that would impact the lives of millions of people around the world. It said the merger woould eliminate the limited competition that currently exists.

For Africa, the company said the deal would have profound consequences for competition in the remittance market.

Media outlets including Bloomberg reported this week that Western Union was in talks with MoneyGram to “swallow up” the competitor.

But in a statement this week, Western Union denied being in talks to buy MoneyGram.

Western Union and MoneyGram are currently facing price competition from companies including WorldRemit, M-Pesa and mobile service operators providing mobile money services that give their customers option for moving money.

WorldRemit founder and chief executive officer Ismail Ahmed said in a statement that online services such as WorldRemit are drawing away their customers with greater convenience and honest pricing, but more than 95% of remittances are still sent offline, primarily through Western Union and MoneyGram.

“We call on regulators to block this deal unconditionally in the interest of migrants and expats around the world who rely on international money transfer service to support friends and family in their homelands,” Ahmed said.

Last month WorldRemit released a report which projected remittances to sub-Saharan Africa would reach $33 billion in 2015.