The South African fintech startup Mama Money, which offers remittance services between South Africa and Zimbabwe , has expanded its money transfer service into Nigeria, Ghana and Tanzania.
The idea was brought up in 2015 when Matt and Raphael were on a big yellow bus travelling across Africa and thought of a social business money transfer operator which provides a cool, modern, safe and low-cost way for immigrants to support their families. Mama Money is designed to help African migrants, who left their home and their community in search of better opportunity, contribute better and more directly to their families survival and development.
Money transfer costs using other companies like Western Union are incredibly expensive and the services offered by Mama Money are at a lower cost hence leading to better nutrition, better health care and better accommodation. A brighter future was part of the vision and mission of the business.
Mama Money uses the advances in modern technology to provide a purposeful and low-cost money transfer solution and so far has 650 money agents in South Africa, partners PEP stores for cash-ins and outs, and has reached 6 million mobile wallets and 2 million bank accounts in Zimbabwe.
“Our platform, software and service solutions are developed for African and emerging economies where the rise and growth of mobile money is coupled with increasing demand for affordable legal money transfer. Mama Money has developed a sophisticated platform capable of processing money transfers reliably and securely,” said Mama Money co-founder Raphael Grojnowski.
Mama Money is now expanding on the back of the success recorded in the South Africa – Zimbabwe corridor. The startup is already connected to the 25 biggest banks and a mobile wallet called VKash in Nigeria, and is working with MTN Mobile Money and Airtel Money Ghana. In Tanzania, its launch partners are Vodacom M-Pesa, EzyPesa and Airtel Money.
The service is licensed by The South African Reserve Bank, as such it is pretty easy to use as no bank account or ID card is required, and smartphone or Internet connectivity isn’t a must. Transfer fees are less than 5%.