Xoom, PayPal’s money transfer service, has enabled its US, Canada, the UK, and Europe customers to transfer money directly to mobile wallets in 12 countries in Africa.
These countries include Burundi, Cameroon, Ghana, Kenya, Madagascar, Malawi, Mozambique, Rwanda, Tanzania, Uganda, Zambia, and Zimbabwe.
Xoom is planning to expand this money transfer service to more markets next year.
The service already enables money transfers for cash pick-up, direct banks deposits and mobile reloads to 41 countries in Africa.
Xoom offers digital remittances, as a way to send money, pay bills and reload phones for friends and families residing in over 160 countries worldwide.
These remittances are typically used to pay for utility bills, healthcare, education costs and emergencies.
Customers can use the Xoom mobile app to send money to Africa.
They can also visit the Xoom.com website and set up an account or use their PayPal’s credentials to log in.
Xoom VP and GM Julian King said: “Sending money to Africa through traditional channels has always been expensive. We wanted to help bring down the cost and speed up the process to boost financial inclusion.
“There is nowhere else in the world that moves more money on mobile phones than Sub-Saharan Africa.
“While there are only five bank branches per 100,000 people as of 2019, there are 1.04 billion registered mobile money accounts in Sub-Saharan Africa.”
The latest development comes after Pan-African fintech MFS Africa partnered with Xoom to offer mobile money transfers to six of the 12 African countries mentioned.
MFS Africa enables its customers in the UK, Europe and North America to send money to people in Cameroon, Ghana, Rwanda, Uganda, Zambia, and Zimbabwe.
Last month, Xoom launched a direct money transfer service for its consumers in the US, which allows them to send money directly to the bank account or debit card of the recipient.