South Africa-based Mama Money has announced a partnership with Western Union. The digital money transfer operator said this partnership will allow users of the platform to transfer money to receivers all over the world though Western Union’s global network.
Mama money was founded in 2015 by Mathieu Coquillon and Raphael Grojnowski. It uses mobile technology to enable its users transfer money safely. The company started with six employees in 2015 and has since expanded to over 120 employees.
The growth of the company is highly attributed to how the company has significantly reduced the cost of remittances through a mobile app platform which is very easy to use. Many South African Nationals abroad use it to send money to their loved ones.
However the Covid- 19 pandemic had an adverse effect on the amount of transfers on the platform according to a co- founder Mathieu Coquillon “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.”
Mama Money has one of the lowest money transfers rates in Africa “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%,” explains Coquillon.
The new partnership will allow cross-border money movement in a matter of minutes through the use of its core cross-border assets.
Coquillon commenting on the new partnership, “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,”
Mohamed Touhami El Ouazzani, Regional Vice President, Africa, Western Union added: “Innovative collaborations such as these will continue to shape global business models while enhancing customer experience and retaining their loyalty.”
“It is an integration of our strengths as we continue to drive connections by enabling enterprises to scale their business offerings worldwide, leveraging our money movement platform,” adds Ouazzani.
Mama Money has 500 000 users based in South Africa.