WorldRemit caps fees on mobile money

London-based money remittance firm WorldRemit has capped transaction fee on its mobile money services across its markets including Kenya irrespective of the amount a customer is sending.

The move, aimed at deepening mobile money usage amidst the outbreak of coronavirus, will see WorldRemit customers pay a flat fee of Sh105.34 ($0.99) in all transactions effective immediately.

The remittance firm has been charging customers a transaction fee of Sh211.74 ($1.99) for customers transacting $100 (10,639) and Sh318.14 ($2.99) for customers sending (Sh21,279) $200 to friends and relatives.

Those sending $1,000 (Sh106,399) have been parting with Sh637.33 ($5.99) in transaction fees.

World Remit handles about 74 percent of remittances to popular mobile money services across Africa such as MTN, Ecocash, Tigo Pesa, M-Pesa and Airtel Money, making it the global leader in mobile-to-mobile international money transfers.

“This will help connect people digitally and make remittances affordable during this time of coronavirus crisis,” the firm’s head of East and Central Africa Sharon Kinyanjui said of the cost cut.

Ms Kinyanjui added that apart from capping the transaction charges to Sh105.34 ($0.99), WorldRemit has partnered with Safaricom to increase their transaction limits.

For Kenya and Africa, remittances are a key source of forex.