Global money transfer company WorldRemit announced on Wednesday that it has been granted a regulatory licence to operate in South Africa.
Now the company has launched its low-cost digital money transfer service from South Africa to over 145 destinations worldwide.
Using the WorldRemit app or website, customers can now send money as easily as sending an instant message to global destinations including Zimbabwe, Mozambique, the United Kingdom, India and Pakistan.
According to the World Bank, South Africa is the most expensive G20 country to send money from with an average cost of over 15% for sending $200 – more than double the global average. Currently, 68% of remittances from South Africa are sent through informal channels such as unregistered courier services (“malaicha”) and buses crossing the border.
WorldRemit currently handles money transfers from the US, UK, European and Asian countries to over 40 African countries.
The launch of money transfers from South Africa is a major milestone as the company targets the growing money transfer market within Africa.
WorldRemit recently opened a new office in Johannesburg, as it aims to expand its partner network across the continent.
“South Africa is one of WorldRemit’s top ten remittance receiving countries, with transactions to the country growing by over 50% year-on-year. We are delighted to start this next phase of our growth, enabling customers in South Africa to send digital money transfers to 145 countries worldwide including Zimbabwe and Mozambique,” said Andrew Stewart, MD for Middle East and Africa at WorldRemit.
“With WorldRemit, customers can make quick, secure and low-cost money transfers directly from their phones. This eliminates the need to give cash to loved ones who are travelling or pay expensive fees to buses or taxis to transport cash across the border.”