Xoom, Paypal’s money transfers service has announced that customers in Europe, the US, and Canada can now send money securely and conveniently to African Countries.
The company is putting its focus on the unbanked on the continent.
The new service will see the company send mobile wallets to countries in Africa such as Kenya, Ghana, Madagascar, Malawi, Mozambique, Tanzania, Rwanda, Zambia, Uganda, and Zimbabwe with plans to expand to more markets in 2021.
Julian King, Vice President and General Manager, Xoom said, “Sending money to Africa through traditional channels has always been expensive. We wanted to help bring down the cost and speed up the process to boost financial inclusion. There is nowhere else in the world that moves more money on mobile phones than Sub-Saharan Africa. While there are only five bank branches per 100,000 people as of 2019, there are 1.04 billion registered mobile money accounts in Sub-Saharan Africa.”
The company seeks to tap into the huge mobile penetration that the continent is currently experiencing coupled with mobile money innovations in the country where Kenya is a global leader.
Mobile money services are being tapped on the continent, as it various organizations tap seek financial inclusion.
Financial inclusion is instrumental in lifting the undeserved population out of poverty—and for driving economic growth. In 2019, the number of globally registered mobile money accounts on the continent surpassed the one billion mark.
In countries such as Kenya, Ghana, and Zimbabwe, 60% of the adult population has a mobile money wallet. Meaning they can easily receive and send money.
Xoom, Paypal’s money transfers service, will enable direct deposits and money transfers.