Moving money across Africa is costly and it takes several days for funds to hit the recipient's account.
Transferring $100 from Canada to the Democratic Republic of Congo could take 1-3 business days using a local Canadian Bank. Western Union could shorten that trip by 24 hours, taking 0-2 days. That’s hardly any improvement and certainly not ideal when the funds are a matter of life and death for the recipient. Africa’s international transfer fees exceeded the global average in 2020 (8.9% of the transaction value vs. 6.8%). It’s no wonder that 20-95% of remittances flow through informal channels (i.e. cash) for some African countries.
McKinsey estimates that cross-border payment firms generated $9 billion in revenues in 2020—38% of Africa’s total e-payments revenues in the same year. These include popular payment giants like MFS Africa, WorldRemit, Chipper Cash, AZA Finance, etc. These companies help consumers and businesses send and receive