According to reports from the BBC, some 8 million Africans live abroad. That number is projected to reach 15 million by 2025. For most Africans living abroad, sending money home to their family can be very expensive.
In the UK the average cost to send cash abroad is 9.5%, so for example if you were sending £ 120 from the UK to Africa it would cost roughly £ 11.40 in fees.
Although the cost has come down in recent years, it is still too high and is more than double the 3% cost target set by the United Nations.
Pipit Global is pleased to announce that in Nigeria, Kenya, Uganda, Tanzania, Mali, Senegal and Ghana, consumers can now take advantage of transactions through the pipit platform at lower rates than ever before.
This is in partnership with Cellulant, a pan-African Fintech company that powers a digital payments platform for businesses and their consumers.
“Getting operational in these countries is a big step forward for intra-African remittances. 70% of Africans who migrate stay on the African continent, where the cost of sending money home across African borders is much higher than the fees for sending cash home from the EU, and can reach 20 % in some corridors.
“Pipit, together with Cellulant, can now solve this problem by making it cheaper and safer for migrants to send cash to their families at home. ” said Ollie Walsh, CEO of Pipit.
” We believe that for Africans to prosper, we must purposefully build bridges that bridge geographic, wealth and social gaps and link communities and their resources to each other.
“Cellulant uses technology to build new types of networks that connect those who have goods and services with those who need them.
“We are pleased to extend our digital payments platform, Tingg, and support Pipit’s work to connect the African diaspora with low-cost payment solutions that allow them to support their families on the continent, ”said David Waithaka, Cellulant’s commercial director For businesses.
The partnership between Cellulant and Pipit means that Africans in the UK and EU from any of the African countries listed can send cash home, recharge an e-wallet, send money to a bank account, and pay their families’ bills. They can also pay for an e-commerce order and receive the merchandise in Africa.
“All consumers in Africa should be able to access their money easily and pay for goods and services in a way that is convenient for them.
“Digital payments make this possible and through this partnership we ensure that consumers in Africa and the diaspora can seamlessly access the services they need and make life easier for them, ” added David.
In the UK, migrant workers from Nigeria, Kenya, Uganda, Tanzania, Mali, Senegal and Ghana can access the Pipit platform through the PayPoint network of more than 28,000 cash acceptance points across the UK; and 35,000 points in western EU countries.
The association also brings lower cost remittances within the African continent with the addition of 620,000 cash collection points in Nigeria, doubling Pipit’s global footprint to 1.1 million collection points.
“We are building a global network of payment partners who recognize that for a growing segment of our society, cash is the primary means of managing their finances.
“Together we are building the technology that allows you to use your cash in the digital market in increasingly safe and profitable ways.
“We look forward to continuing to grow as more customers trust the platform and enjoy the lower costs of sending money home, ”continues Ollie Walsh.
The COVID pandemic has accelerated the demand for digital financial products, and partnerships between fintech companies such as Cellulant and Pipit are bridging the gap between continents and making it easier for customers to access financial services with ease.
