South African fintech company Mama Money has entered a partnership with Western Union, a leading international cross-border currency movement facilitator.
The partnership enables Mama Money customers to send money to their loved ones around the world via Western Union’s global network.
Mathieu Coquillon, co-founder of Mama Money says: “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.”
The company has grown ten-fold since 2017 and has a staff complement of over 120 members currently.
The strong growth is attributed to drastic reduction of remittances cost through an easy-to-use mobile app that helps foreign nationals in South Africa send money home to their families.
In the beginning, Mama Money remitted only to Zimbabwe, now the fintech company’s footprint covers more than 50 countries, providing services to Africa, Asia and Europe.
“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%,” says Coquillon.
The partnership with Western Union is set to fast-track Mama Money’s growth in the international money transfer business and will broaden the company’s reach and enable cross-border money movement in minutes, through Western Union’s core cross-border assets.
Mohamed Touhami El Ouazzani, Regional Vice President, Africa, Western Union said: “Innovative collaborations such as these will continue to shape global business models while enhancing customer experience and retaining their loyalty.”
The company’s more than 500,000 customers in South Africa will be able to send money from their phones for payout in over 200 countries and territories around the world through Western Union’s extensive network.
To register, a user is required to upload pictures of their ID, passport, refugee status or asylum document. They can then start transacting once approved within 24 hours.
The Mama Money app is available for free on Google Play and Apple App Stores and customers can also send money via USSD by dialing *134*542#.