The global card network’s money transfer unit, HomeSend has announced a new partnership with mobile money transfer focused Azimo that will enable users throughout Europe to send money to loved ones in Africa and Asia through their mobile phones. With the deal in place, the partnership will enable Azimo users to send money directly (and in real-time) to recipients’ mobile money accounts rather than via over-the-counter agents or directly to bank accounts.
Commenting on the partnership, Stephen Doyle, CEO, HomeSend said,
“We’ve seen an increased desire for people to be able to safely send funds via mobile money accounts. This form of money transfer has gained particular popularity due to its convenience, security, competitive pricing and near-instant delivery times.”
According to the World Bank, the global remittance market is set to be worth $586 billion in 2015 and traditional remittance and payment industry participants are trying to determine the best strategy to address this fast market. MasterCard and others have had money transfer services for years but have been unable to get traction and through this partnership with a growing and popular mobile transfer like Azimo it may be more profitable over the long run.
Further adding significance to this announcement is the recent acquisition of money transfer company, Xoom by PayPal for $890 million which demonstrates the growing interest in remittances by the payments industry. For more information on this acquisition see, Why PayPal Bought Xoom: Emerging Markets Opportunity Too Good to Ignore released in July 2015.
Overview by Tristan Hugo-Webb, Associate Director, Global Payments Advisory Service at Mercator Advisory Group
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