Kathy Gibson reports – South Africa is the most expensive G20 country to send money from – it costs about 15% to send $200.00, which is more than double the global average.

This is according to studies by the World Bank, which also finds that about 68% of remittances from South Africa are currently sent through informal channels like unregistered courier services or buses.

Now, digital money transfer service WorldRemit has launched a low-cost digital money transfer service from South Africa to more than 150 destinations worldwide.

Using the WorldRemit app or website, it’s as easy as sending an instant message for customers to send money to global destinations including Zimbabwe, Mozambique, the UK, India and Pakistan.

Andrew Stewart, MD: Middle East and Africa at WorldRemit, comments: “The launch of WorldRemit South Africa is very exciting news for us.”

WorldRemit is a mobile-first money transfer system that allows people to quickly and easily move funds around the world.

Globally, the remittance industry is valued at about $600-billion; in Africa, this amount if $65-billion.”This is typically the African Diaspora sending money back home,” Stewart says.

South Africa alone accounts for about $2,4-billion.

The World Bank has a stated mandate to reduce remittance costs, which could result in an additional $1,9-billion flowing in to the region.

He explains that the traditional way of sending money abroad involves the physical transfer of cash, which carries a social and transaction cost.

Currently, only about 5% of the world remittance market is online, but this is expected to shift to about 60% within the next two to three years, Stewart says. “WorldRemit is really well placed to lead that change.”

WorldRemit’s low fees and exchange rates are shown up-front and senders from South Africa can choose from a wide variety of convenient payout options including bank transfer, cash pick up and mobile money.

For example, for customers sending to Zimbabwe, WorldRemit offers cash at over 200 locations – more than any other remittance service. Guaranteed cash is available through partners including Steward Bank, ZB Bank, Kaah Express and Quest Financial Services.

The company was formed in the UK in 2010, and now works with more than 50 send countries and more than 150 receive countries.

WorldRemit already 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.

Stewart explains: “South Africa is one of WorldRemit’s top 10 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 150 countries worldwide, including Zimbabwe and Mozambique.

“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.”

WorldRemit offers complete transparency because both senders and recipients receive notifications with details of how much money has been sent. Senders can also use the ‘track your transfer’ function to check the status of their transactions in realtime.

In fact, with most users making use of the mobile app, the majority of transfers are almost instant, Stewart points out.

“The unique attributes of the system its low cost – the average cost is about 5%, or one-third of the current costs; and the fact that it is fast, simple and secure.”

To ensure recipients get their money quickly and securely, WorldRemit partners in-country. “We have contractual relationships with partners that allows them to instantly credit customers,” says Stewart.

Mobile money is the fastest-growing service on the recipient side, he adds, driven by the fact that its partners connect to more than 130-million mobile money subscribers.

WorldRemit’s competitive advantage lies in its online model, Stewart says. It starts with quick and easy registration on computer, smartphone or tablet then allows for payments funded by debit/credit cards or bank transfers. Transactions are quick, affordable and secure as well as being convenient for both sender and recipient, with a variety of payout choices. Customer support is available via the phone, web chat or e-mail.