Cross-border payments brand MoneyGram is now working with Ghanaian fintech Zeepay to provide remittance services to mobile money users in Ghana.
The service, according to MoneyGram, will make it possible for customers to send funds to any mobile wallet in the country. This includes MTN Mobile Money, Vodafone Cash, Zeepay wallets, and the AirtelTigo Money Wallet.
MoneyGram and Zeepay inked an agreement to launch the service in the country with the Director for Africa at MoneyGram John Gely signing the deal on behalf of the company.
Zeepay Ghana Limited’s Managing Director Andrew Takyi-Appiah told reporters that their partnership with the money transfer company is a response to the wide use of technology in the country. Takyi-Appiah added that it will contribute to financial inclusion, a major challenge for many people in Ghana.
The government is keen on improving banking for its citizens, according to reports, considering that around 50% still remain unbanked.
Based on an interview with Ghana’s Finance Minister Sampson Akligoh, the government wants to achieve 90% financial inclusion by 2020.
The Finance Department recently approved a bill promoting payment systems and services. The development will reportedly be presented for ratification soon.
Zeepay and MoneyGram’s partnership will not only make sending money to Ghana a lot cheaper and more accessible, it will also pave the way for other fintechs to enter the country, observers say. MoneyGram’s Regional Director in West Africa Patrick Appiah said that the brand desires to be at the forefront when it comes to digital financial services.
Africa remains one of MoneyGram’s key markets. In 2017 alone, Ghana received a whopping $2.2 billion in remittances, an amount that increased an estimated 4.3% based on numbers from the year before.
According to World Bank data, Ghana ranks as the fifth largest recipient of remittances in the continent. Remittances going to the country come from migrants living and working in Nigeria, the United Kingdom, Italy, Germany and the United States.