MTN has launched “Homeland”, a mobile money remittance service for diaspora-based users.
Customers in the diaspora will be able to facilitate money and airtime transfers across Europe, Africa and parts of the Middle East.
MTN has partnered with MFS Africa, an SA-based fintech, to launch Homeland.
MFS Africa has over 180 million active mobile wallets in Africa.
The new remittance service is aimed at taking advantage of the increasing rate and size of diaspora remittances.
Rob Shuter, MTN CEO, said in a press release, “The value of remittances from the diaspora exceeds Foreign Direct Investment in Africa. MTN has the largest Fintech and Telecommunication footprint in Africa and is therefore uniquely positioned to go beyond mobile communication by offering instant, low-cost digital remittances.”
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The cost of digital remittances is highest in Africa. Currently, a 9.3% charge applies to send money to users in Sub-Saharan Africa. This is exorbitant compared to the global average charge of 7%.
Shuter explained that Homeland targets to slash the costs of remittances into Africa to under 3% of their value, as recommended by the World Bank.
Subsequently, it costs a standard US$ 4.41 to send any amount through Homeland as a result.
Homeland users can send money from Europe to Cameroon, Congo Brazzaville, Ghana, Guinea Conakry, Rwanda, and Uganda.
Homeland also allows airtime transfers to countries like Benin, Botswana, Cameroon, Congo Brazzaville, Afghanistan, Yemen and Zambia.
MTN targets to enable transfers (via Homeland), from the US, Australia, UAE, and other corridors into Africa in the future.
