Local money transfer company, Mama Money has joined forces with cross-currency money movement and payments company, Western Union. The partnership enables Mama Money customers to send money to their loved ones around the world via Western Union’s Global Network.
“When the April lockdown hit, we saw a massive drop in remittances leaving South Africa due to the restrictions on movement to paying for money transfers and uncertainty. Remittance outflows for certain countries dropped by 90%. However, we’ve seen a very swift recovery since May as economic activities began to resume,” says Mathieu Coquillon, co-founder of Mama Money.
Since 2017, Mama Money has grown by over 10 times – starting with six employees to over 120 staff members today. This strong growth is attributed to how the company has drastically reduced the cost of remittances through an easy-to-use mobile app that helps foreign nationals in South Africa send money home to their families.
In the beginning, Mama Money remitted only to Zimbabwe, now the fintech company’s footprint covers more than 50 countries, providing services to Africa, Asia and Europe.
“Our average fee is around 3% but we have dynamic pricing which means if you send more per transaction the fees are reduced and can be as low as 0.1%,” says Coquillon.
The partnership with Western Union is set to fast-track Mama Money’s growth in the international money transfer business. Soon, the company’s more than 500,000 customers in South Africa will be able to send money from their phones for payout in over 200 countries and territories around the world.
“Western Union’s robust and reliable network, coupled with Mama Money’s easy-to-use and reliable digital service, is a highly strategic partnership with massive potential for tapping into a broader remittance market especially for the unbanked population,” continues Coquillon.
How does Mama Money work?
Mama Money’s mobile app allows customers to quickly register using their phones by uploading pictures of their ID, passport, refugee status or asylum documents. Once approved, users can start sending money abroad.
To send money, users can make payments directly from their bank account or pay for their order at any major retailer in South Africa such as, Pick n Pay, Boxer, Shoprite, Checkers, Cambridge, Boxer, Makro and Game.
The Mama Money app can be downloaded for free from the Google Play Store or the Apple App Store.