Traditionally, sending money abroad meant handing over cash at an agent location and then the receiver collected it from an agent at the other end. But with more and more people owning a smartphone- 65% of the world’s population in 2016, a figure which is expected to jump to 73% by 2020, according to the Groupe Speciale Mobile1 – the exponential growth of mobile money should come as no surprise. Mpesa is a great example. 10 years after launching, it has almost 29.5 million users and completed over 600 million transactions in December of last year alone2.
As this might be a relatively new way of sending money for some, we decided to dedicate a blog post to explaining how a mobile wallet works. After all, it’s one of the most convenient ways of transferring money overseas.
What is a mobile wallet?
A mobile wallet is a digital version of the wallet you carry around in your pocket. It stores payment details, for example credit or debit cards, and cash balances, which can then be used to make payments. Most importantly, for those interested in using a mobile wallet for remittance, it can receive money from others.
How do you transfer money to a mobile wallet?
To transfer money to a mobile wallet, first make sure that the receiver has one set up on their phone. It’s a straightforward process- simply download an app and install it. You then need to pop into an agent, provide the receiver’s mobile number and hand over the amount you want to send. The money appears in the receiver’s wallet instantly. For now, you can only use this method on Xpress Money to transfer money to Kenya, Ghana, Figi and the Philippines.
What are the advantages of sending money to a mobile wallet?
There are two main advantages of sending money to a mobile wallet. Firstly, it makes life much easier for the receiver, as they don’t have to travel to an agent to collect it. Once the money hits their wallet, they can use it to pay bills or make purchases immediately. However, to withdraw cash, the receiver must visit an agent location. You can also transfer money to a mobile wallet if the receiver doesn’t have a bank account.
Our global average cost to send money abroad is just 2%, making Xpress Money one of the most competitive money transfer businesses in the industry. To find your nearest agent location, click here.