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Home Innovation South African fintech startup, Mama Money partners Western Union for global expansion

South African fintech startup, Mama Money partners Western Union for global expansion

Mama Money, a South African founded digital money transfer operator, has announced a recent partnership with Western Union.

Joining forces will allow Mama Money customers to transfer funds to their loved ones across the globe through Western Union’s Global Network. This new partnership will enable Mama Money to enter the international money transfer business sphere.

Founded by Mathieu Coquillon and Raphael Grojnowski, Mama Money uses mobile technology to allow its users to transfer funds safely. The company has grown in strides since 2015 with a mere six employees growing to 120 in 2017.

This strong growth is attributed to how the company has drastically reduced the cost of remittances through an easy-to-use mobile app that helps foreign nationals in South Africa send money home to their families.

Co-founder of Mama Money, Mathieu Coquillon comments on the impact of Covid-19 on remittances.

“When the April lockdown hit, we saw a massive drop in remittances leaving South Africa due to the restrictions on movement to paying for money transfers and uncertainty. Remittance outflows for certain countries dropped by 90%. However, we’ve seen a very swift recovery since May as economic activities began to resume.”

Mama Money assists migrant workers in over 50 countries to send money to their loved ones with fees as low as 0.1%. The app is simple to use and is gaining traction across the world.

“Our average fee is around 3% but we have dynamic pricing which means if you send more per transaction the fees are reduced and can be as low as 0.1%,” explains Coquillon.

A global market

More than 500,000 users based in South Africa will be able to send money from their phones for payout in over 200 countries around the world with the aid of Western Union’s extensive network.

The new partnership will enable cross-border money movement in a matter of minutes through the use of its core cross-border assets.

Coquillon comments on the new partnership.

“Western Union’s robust and reliable network, coupled with Mama Money’s easy-to-use and reliable digital service, is a highly strategic partnership with massive potential for tapping into a broader remittance market especially for the unbanked population.

Mohamed Touhami El Ouazzani, Regional Vice President, Africa, Western Union says: “Innovative collaborations such as these will continue to shape global business models while enhancing customer experience and retaining their loyalty.”

“It is an integration of our strengths as we continue to drive connections by enabling enterprises to scale their business offerings worldwide, leveraging our money movement platform,” adds Ouazzani.

How Mama Money works

Mama Money’s mobile app was designed to make international money transfers easy. Customers can register by uploading a picture of their ID, passport, refugee status, or asylum documents.

The approval process for customers usually takes about 24 hours and customers can start sending money as soon as they are given the green light.

To send money, customers can make payments directly from their bank account or pay for their order at any major retailer in South Africa such as, Pick n Pay, Boxer, Shoprite, Checkers, Cambridge, Boxer, Makro, and Game.

The Mama Money app is available for free download from the Google Play Store or the Apple App Store. Another option that customers have is to send money via USSD by dialing *134*542#.

SourceTechpoint
Editor
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