Global peer-to-peer (P2P) payments solutions provider Transfast has announced the launch of its online money transfer service in 23 African countries, claiming to be the most extensive roll out of this type of service on the continent.
Transfast's proprietary bank network enables people in the US and Canada - with the the U.K. and Europe to be added to the network soon -, to send money online or via mobile, directly into recipients' bank accounts at nearly 600 banks, M-PESA wallets, or to 6,000 cash pick-up locations inside banks in Africa.
The company claims its online remittance service will cover 90 per cent of adult bank account holders in the 23 African countries it is rolling out to.
The service also provides for cash pick-ups within the African countries, allowing recipients with no bank account or M-Pesa wallet to redeem cash at the 600 bank branches signed up to the network.
"Our direct to bank initiatives further the financial inclusion goals of governments in Africa," says Samish Kumar, chief executive officer (CEO) of Transfast.
"As banking penetration grows in Africa, our bank product capability is the most efficient and cost-effective way to receive funds. For unbanked recipients, the ability to pick up cash at a bank provides a positive experience in a bank environment and is a first step toward becoming banked."
The Transfast service is already live in Nigeria, Kenya, Ghana, Gambia, Ivory Coast, Senegal, Ethiopia and Mali, while a further 17 countries will be deployed over the coming months, including Benin, Bissau, Burkina Faso, Cameroon, Cape Verde, Chad, Comoros, Congo, Egypt, Guinea, Guinea Mauritania, Morocco Niger, Sierra Leone and Togo.
"Africa presents vast opportunities. By deploying Transfast's direct-to-bank network in Africa, we've offered the African diaspora an innovative Fintech solution to the cumbersome challenge of how to move money globally," Transfast told ITWeb Africa.
"We view our direct-to-bank network as a smart way to build financial inclusion in Africa. There is evidence that direct bank deposits play an important role in building financial inclusion by further engaging account holders in the banking system. For the unbanked, we believe that having positive experiences over time as they pick up cash at a bank will raise their comfort level with banks. Over time, we believe this will bring more people into the financial system," the company's spokesperson said.
Transfast said its fees charged for remittances will fluctuate over time, as the cost is comprised of several components, such as the transfer fee, foreign exchange, and delivery time.
Currently Transfast is charging a flat rate of US$4.99 for transfers sent online from the U.S., plus a locked-in competitive foreign exchange rate to the eight initial African nations.
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