MoneyGram predicts explosion in Mobile Wallets

MoneyGram's Head of Northern Europe - Marc Matthews has predicted that there will be an explosion in the use of mobile wallets as a preferred payment option across Africa in the very near future.

Speaking to The Trumpet, Matthews stated that MoneyGram currently sends money to M-Pesa accounts in Kenya and Tanzania, and Econet accounts in Zimbabwe.

Emphasising that Africa will continue to be in focus for MoneyGram, he highlighted the company's price promotion to the Democratic Republic of Congo (DRC) and its attractive pricing to Zimbabwe as examples of MoneyGram's quest to make its service available and more affordable across Africa.

He added that in Nigeria, there is a huge focus on direct payments into Bank Accounts. MoneyGram recently announced the continuity of its operations in Nigeria following recent market developments as the Central Bank of Nigeria (CBN) changed its policy on how remittance companies (including MoneyGram) can continue to provide money transfer services in Nigeria. MoneyGram offers its customers in Nigeria the ability to send and receive money from family and friends throughout the world within minutes. Customers can either send or collect the funds from a MoneyGram agent location or receive them directly to their personal account.

“Remittances play an important role in the Nigerian economy. Nigerians living abroad sent more than $21 billion back to their country in 2015 alone,” explained Grant Lines, MoneyGram's Chief Revenue Officer, Africa Middle East Asia Pacific (AMEAP), Russia and CIS.

Lines stated that “MoneyGram recognises and supports the Central Bank of Nigeria in its efforts to ensure these inflows are brought into Nigeria for the benefit of consumers as well as the economy at large. Being recognised by the CBN as a legitimate money transmitter is a testimony to our commitment to compliance and willingness to continue working with the CBN in the best interests of the economy.”

“MoneyGram’s relationship with Nigeria is strong,” said Kemi Okusanya, Head, MoneyGram Anglophone Africa. “Lagos has been chosen to serve as MoneyGram’s hub for Anglophone Africa operations. In addition, we have invested millions of dollars to improve product delivery for remittances to Nigeria. We know the needs of our customers vary and we are always striving to provide them with a solution that is most convenient for them. For example, our cash-to-account service allows Nigerians to receive funds directly to the customer’s personal bank account.”

Remittances are the second largest source of foreign exchange in Nigeria after the oil sector. According to World Bank data, Nigeria accounts for nearly two-thirds of total remittance inflow to Sub-Saharan Africa. In 2015, an estimated $21 billion flowed into the country, including $5.7 billion sent from the United States and about $3.7 billion from the United Kingdom. 

Matthews highlighted the MoneyGram online service to Nigeria which was launched eight weeks ago. He said "the take up has been fantastic. We are striving to be competitive across foreign exchange rates and commission. We are constantly looking at other things like the mobile wallet. We want to be the channel of choice."

Matthews also emphasised the importance of education to MoneyGram as exemplified by its Back to School campaign which he described as "one of the big global campaigns we do each year." MoneyGram has helped some families that can't afford to send their children to school and offered grants to support educational facilities.

Matthews could also not conceal his excitement about MoneyGram's new global advertising campaign which "moves away from animated advertising" to the use of real persons, which he felt is a truer reflection of how the company is transforming lives.