Safaricom's push to take its mobile money transfer business global has received another boost with the signing of a deal that will see users of
The deal, signed by
"There is huge demand for sending funds back (home) to family and friends," said
The new deal comes just weeks after it emerged that Safaricom was on the verge of signing a similar agreement with
READ: Safaricom targets diaspora cash in deal with
The partnerships will see Safaricom tighten its grip on diaspora remittances, which have been a main source of commissions income for commercial banks.
Diaspora remittances rose by 10.2 per cent last year to Sh111 billion (
Remittances from Kenyans working abroad are the fourth-largest source of foreign exchange after tea, horticulture and tourism. The partnership between
Safaricom is riding on M-Pesa's wide reach of its nearly 18 million customers to win deals with the global firms.
The deal also mirrors another signed between Safaricom and international money transfer network
About 17 per cent of the remittances are channelled through commercial banks, while foreign exchange bureaus, postal money orders and personal deliveries were used to send the remaining portion.
M-Pesa's earlier plans to go global were delayed by concerns over stringent international regulations against money laundering and financing of terrorism.
"This agreement furthers our goal of joining with fast and reliable mobile wallets so consumers may send money for life's essentials anywhere and any way they want, simply and conveniently," said
It is likely that the service will debut in the US and
Safaricom, which listed on the
Safaricom has 67,000 M-pesa agents from which customers can withdraw money, making it much more convenient than going to queue in often crowded banking halls.
The telco's partnership with
The firm has taken to such innovations to grow earnings from the mobile money platform, which raked in Sh21.8 billion or 17.5 per cent of total revenue in the year to
The firm has also expanded the spectrum of services under M-Pesa beyond money transfer to include payment of utility bills shopping and receiving dividends.
Most Popular Stories
- Obama Administration Releases Proposal to Regulate For-Profit Colleges
- Some California Cities Seeking Water Independence
- Motley Crue's Nikki Sixx Marries Model Courtney Bingham
- FDIC Files Lawsuit on Behalf of Banks Allegedly Hurt by Libor Scandal
- Chinese e-Commerce Giant Alibaba Gears for IPO in U.S.
- Apple, HP, Intel May Take a Hit from Slowdown in Smartphone Sales Growth
- SoCalGas Reaches Record Spend on Diversity Suppliers
- Obama Seeks to Stay Neutral in CIA-Senate Conflict
- Will Missing Malaysian Jet Prompt Aviation System Change?
- Natural Gas Discovery Could Lead to Cleaner Fuels