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Western Union, Vodafone, Safaricom partner for mobile money transfer service
December 9, 2008
ENGLEWOOD, Colo. — Vodafone, Safaricom and The Western Union Company are partnering to pilot a cross-border mobile money transfer service between the United Kingdom and Kenya.
According to a news release, the service will enable customers to send cross-border remittances from select locations directly to Safaricom mobile subscribers in Kenya.
The initiative uses Western Union's trusted global "hub" for processing cross-border remittances, and builds on Vodafone's M-PESA system, a mobile money transfer service in Kenya offered by Vodafone and sister company Safaricom. Safaricom has attracted more than 4 million customers since its launch in March 2007.
The pilot will take place through a select number of Western Union agents based in Reading, Berkshire. Consumers can send funds to any Safaricom mobile subscriber in Kenya in a matter of minutes. Recipients can use their funds in a variety of ways, including visiting one of 4,000 M-PESA agents in Kenya to withdraw their cash, or forwarding it on to another mobile phone in Kenya.
"The successful take-up of M-PESA in Kenya has clearly demonstrated the demand for easily accessible, secure cash payment services in emerging markets," said Nick Hughes, Vodafone's head of international mobile payments. "Our partnership with Western Union allows M-PESA subscribers to receive international remittances and builds on the demand we have already seen domestically in Kenya."
Mobile phones for micro-transactions provide numerous financial opportunities in a country like Kenya, where few people have bank accounts and more than 10 million people have mobile phones, Western Union says. And increased global migration has led to a significant increase in the flow of funds from expatriate migrant workers who send money home. Last year, Kenya received approximately U.S. $1.3 billion in international remittances.
Western Union, together with brands Orlandi Valuta and Vigo, has a combined network of more than 365,000 agent locations worldwide in 200 countries and territories.
Vodafone is the world's largest mobile operator by revenue and has expanded the M-PESA service to Tanzania and Afghanistan. Safaricom is Kenya's leading mobile operator and has had unprecedented success with its M-PESA service.
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