Skip to main content

Xoom announces aggressive entry into new African markets

Julian King, VP and General Manager at Xoom

Xoom, PayPal’s money transfer service, announced in December of 2020 that the company’s customers in the US, UK, Canada and Europe can now send secure and convenient money transfers directly to mobile wallets in key markets across Africa with a focus on the underbanked segment. Maisha254's Benson Kamau spoke to Julian King, Vice President and General Manager at Xoom, to find out what the firm has in store for the Kenyan market.


What does this entry into the Kenyan market look to achieve?

Mobile money services are a key tool to further the goal of financial inclusion which is instrumental in lifting the underserved population out of poverty—and for driving economic growth. We picked these initial set of countries as they have a high percentage of mobile money registered account holders. In Kenya, over 60 percent of adults have mobile money accounts. In 2021, we plan to introduce our mobile wallet to more countries across Africa.

Why did Xoom choose to enter the market after this long?

At Xoom, we have offered our service to select markets across Africa for over a decade now. This new service expands Xoom’s offerings in Africa as the current service already enables money transfers for cash pick-up, direct banks deposits and mobile reloads to 41 countries in Africa.

Are there any other partnerships lined up with fintech partners or will the focus be solely on Mobile Network Operators?

At Xoom, we work closely with partners across the financial ecosystem to help deliver on our mission of financial inclusion. We have over a hundred partners across the globe and they range from banks to fintech companies. In Africa, we partner with Ria, MFS Africa, Thunes and Upesi among others.

Our partnership with M-PESA transforms the mobile payments system in Kenya. Through our relationship, Kenyans can now seamlessly move money between their M-PESA and PayPal accounts, removing barriers that have prevented Kenyan consumers from fully participating in the global digital economy. 


PayPal is synonymous with online payments. Does this mean that you are now entering the mobile money transfer space?

We have offered our remittance service to select markets across Africa for over a decade now. This new service expands Xoom’s offerings in Africa as the current service already enables money transfers for cash pick-up, direct banks deposits and mobile reloads from North America and Europe to 41 countries in Africa. At Xoom, we offer secure, fast and convenient cross-border money transfers at competitive rates.

What is the cost implication on the local market in terms of value spend?

At PayPal and Xoom, our mission is to improve the financial health of people around the world. The cost of sending money through traditional channels to Africa is one of the most expensive in the world, with an average cost of 9.3 percent.  Xoom is helping to change this story by bringing down the cost significantly. With Xoom, the average cost of sending money to mobile wallets in select African markets ranges from 2-4% percent of the transaction. 

Labels:

Comments

Post a Comment

Popular posts from this blog

Visa and Halotel bring secure and convenient mobile payments for Tanzanians

Visa, the global payments technology company, has announced a strategic partnership with Halotel to enable Visa on mobile payments on Halotel’s HaloPesa wallet in Tanzania.  The service will be rolled out in early 2019 thereby enabling HaloPesa’s one million registered wallet holders to use Visa on mobile to securely make merchant payments and conduct cash deposits and withdrawals at Visa agents. Any HaloPesa customer, including those who do not have a bank account, will be able to benefit from the solution. The aim is to connect more Tanzanians to the global payment system, bringing secure and convenient mobile commerce for consumers and merchants.  “We are excited about this partnership with a key mobile service provider such as Halotel. Our partnership with Halotel will ensure that Tanzanians can pay using Visa on their mobiles at over 40,000 new retailers. It will also help expand financial inclusion for Tanzanian consumers who will now be able to benefit from pa...
Post a Comment
Read more

Visa Takes a Shot at Financial Goals with New Football Video Game

With FIFA World Cup ™ excitement heating up , Visa (NYSE: V), the Official Payment Technology Partner of FIFA, invites football fans to sharpen their financial skills on the virtual pitch with the new version of the educational video game , Financial Football. Gamers can suit up as the country of their choice and take their best shot for the coveted trophy by correctly answering questions designed to help players make smart, well informed money management decisions. To further Visa’s commitment to uplift lives through the power of sport and the global platform of FIFA World Cup Qatar 2022™ , Visa is working in collaboration with clients and non-profit organizations to make the new version of Financial Football available to as many people as possible. Visa and partners will host events, learning series and promote game availability in more than 100 markets around the world leading up to and following the tournament. With only one-in-three adults estimated to have a basic understan...
Post a Comment
Read more

Bolt launches its car-sharing service Bolt Drive

Bolt, the leading European mobility platform, launches its car-sharing service, Bolt Drive. The new service allows customers to rent a car for short periods of time using the Bolt app. Bolt will invest €20 million in launching Bolt Drive in Europe this year, starting with a pilot in its home market, Estonia. Bolt is the first mobility platform in Europe to offer car-sharing, ride-hailing and micromobility with scooters and electric bikes in one app. By enabling customers to quickly and conveniently rent a car at the tap of a button, Bolt allows them to be less dependent on personal cars and encourages the use of alternative modes of transport for short-distance trips. Markus Villig, CEO at Bolt, said: “Personal cars are the primary cause of problems in urban transport. They are responsible for traffic, environmental emissions and taking up city space. Bolt’s mission is to help people give up their personal cars by providing a better alternative. For people to switch from ownership to o...
Post a Comment
Read more