Nigerians in US and Canada can now transfer money to local bank account of recipients with the expansion of a cross-border payment service, Transfast, the promoter of the service says.
Provider of online, cross-border p2p payments solutions Transfast announced that Nigeria is now part of its expanded proprietary bank networks covering 23 African nations.
Tranfast’s proprietary network enables Nigerians, among the African diaspora to send money to family and friends via bank deposits, cash or M-PESA mobile wallets, the company says.
The network enables people in the U.S. and Canada, and soon from the U.K. and EU, to send money online or via mobile, directly into recipients’ bank accounts at nearly 600 banks or to 6,000 cash pick-up locations inside banks in Africa.
Transfast cites its expanded service as “the most extensive of its kind on the continent” saying its African banking network will about 90 percent of adult bank account holders in the 23 economies it serves.
Transfast customers will be able to send money via mobile, online or even in person to recipients of funds transfers.
Nigeria is among countries where direct deposits are available at banks including Kenya, Ghana, Gambia, Ivory Coast, Senegal, Ethiopia and Mali.
Plans are underway to deploy in another 17 countries that will include Benin, Bissau, Burkina Faso, Cameroon, Cape Verde, Chad, Comoros, Congo, Egypt,Guinea, Guinea Mauritania, Morocco Niger, Sierra Leone and Togo, the company says.
Samish Kumar, CEO of Transfast says the company’s direct to bank initiatives promotes the financial inclusion goals of governments across Africa.
According to him, “as banking penetration grows in Africa, our bank product capability is the most efficient and cost-effective way to receive funds. For unbanked recipients, the ability to pick up cash at a bank provides a positive experience in a bank environment and is a first step toward becoming banked.”
According to the World Bank, direct bank deposits and electronic payments play an important role in building financial inclusion by further engaging account holders in the banking system.
Studies show that when people participate in the financial system, they are better able to start saving, expand businesses, invest in education, manage risk and absorb financial shocks. Access to accounts and to savings and payment mechanisms increases savings, empowers women, and boosts productive investment and consumption.