Airtel Africa has partnered with financial service giant Mastercard, to launch a new cross-border remittance service to enable customers with seamless transfer and receiving of funds.
The new service is designed for over 100 million mobile phone users of Airtel in Africa, to bolster stronger cooperation between Airtel Africa and Mastercard, in boosting the digital economy on the continent.
The new service will present an easier means for Airtel’s mobile users to initiate digital transactions across different countries abroad.
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Airtel users who will be the beneficiaries of this service will be able to access and connect to wallets in over 145 markets around the world, enabling them to send and receive money from various countries.
The service will be rolled out gradually in 14 African countries where Airtel operates. These include Chad, Congo Brazzaville, Democratic Republic of Congo, Gabon, Kenya, Madagascar, Malawi, Niger, Nigeria, Rwanda, Seychelles, Tanzania, Uganda, and Zambia.
Speaking on the launch, Head of Airtel Money Ian Ferraro said,
“This partnership with Mastercard will let us give a top-notch money transfer service to our users. We at Airtel Africa always aim to improve our customers’ lives with new and easy financial solutions. Our goal is to help everyone succeed, and this new service will surely help in achieving that.”
Senior Vice President, Digital Partners and Enablers, Mastercard, Ngozi Megwa said,
“With this new service, sending and receiving money across borders will be smooth and safe. We at Mastercard have always been committed to Africa’s growth and aim to provide handy digital solutions to its people. Teaming up with Artel Africa, we’re adding more value for their customers”.
According to Mastercard’s 2022 Borderless Payments Report, digital payments are seeing strong growth with three-quarters of consumers who send and receive cross-border payments doing so through mobile apps.
This growth in cross border mobile transactions has created a genuine need to make cross border remittances easy and secure for both banked and unbanked consumers. Airtel and Mastercard share this passion for digital transformation and making mobile financial services accessible to everyone across the continent.
Mastercard’s second annual borderless payments research reveals how critical cross-border payment services have been. Of all consumers surveyed who sent a cross-border payment last year, around 40% said their family members living internationally would not have survived financially without the funds.
The impact was just as striking among businesses. Approximately 70% of small and medium enterprises (SMEs) surveyed say the global payment network helped they endure the pandemic.
Why is the Airtel And Mastercard Partnership Important for Africa?
Remittance fees to Africa play a significant role in the economic and social development of the continent. It is reported that every year, around $95.6 billion comes into Africa from other countries.
- Economic Support for Recipients: Remittances serve as a lifeline for many families and communities in Africa. They provide essential financial support for basic needs such as food, housing, education, healthcare, and other necessities.
- Poverty Reduction: Remittances contribute to reducing poverty levels by directly injecting funds into households. This, in turn, can have a positive impact on the overall standard of living.
- Strengthening Local Economies: Remittances can stimulate local economies in Africa, by increasing demand for goods and services. This boost in economic activity can create jobs and drive economic growth.
- Foreign Exchange Inflow: Remittances contribute to foreign exchange reserves for African countries, which can help stabilize local currencies and support macroeconomic stability.
With this new service, Airtel and Mastercard aim to make it easier for people in Africa to get funds from their family and friends across the globe. This can help in boosting Africa’s economic growth and offering financial support to many.