Transfast, a provider of online and cross-border payments solutions, has announced the expansion of its proprietary bank network into 23 African countries yesterday. This is the most extensive of its kind on the continent.
Transfast’s network allows 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 about 600 banks or to 6,000 cash pick-up locations inside banks in Africa.
According to the announcement made available to TechCabal, Transfast will provide services to about 90 percent of adult bank account holders in the 23 nations. Transfast customers will be able to send money via mobile, online or in person to recipients of funds transfers.
Direct deposits are currently available at banks in Nigeria, Kenya, Ghana, Gambia, Ivory Coast, Senegal, Ethiopia and Mali. By this summer, direct deposits will be available in 17 more countries, including Benin, Burkina Faso, Cameroon, Cape Verde, Chad, Congo, Egypt, Guinea, Morocco Niger, Sierra Leone and Togo.
“Our direct to bank initiatives further the financial inclusion goals of governments in Africa,” says Samish Kumar, CEO, Transfast. “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.”
Remittance plays an important role in African nations’ economies, as 30 million Africans in the diaspora send about $160 billion to the continent annually. Direct bank deposits and electronic payments can play a key role in building financial inclusion by engaging account holders in the banking system.
Photo credit: via Transfast