WorldRemit launches money transfer service from South Africa to Nigeria

Digital money transfer service WorldRemit has launched low-cost online money transfers from South Africa to Nigeria, uniting Africa’s two largest economies.

With the launch, Nigerians in South Africa can now send money directly from their phones to all major Nigerian banks using the WorldRemit app or website.

In a statement made available to The Guardian, users can send to all major Nigerian banks including Access Bank, Fidelity Bank, First Bank, and more with just a few taps on their phones.

The new digital service will reduce the cost of sending money across borders. The prohibitive charges that individuals and businesses pay to transfer money within Africa are recognised as a major obstacle to the growing regional integration promoted by the continent-wide free-trade agreement signed in March 2018.

WorldRemit is now one of the only digital money transfer services sending money from South Africa. By opening up this service, WorldRemit will introduce some of the cheapest fees available on the market to send money to Nigeria – often under half of the average cost.

According to the World Bank, South Africa is the most expensive G20 country to send money from. The average cost of sending $200 from South Africa to Nigeria is nearly 16 per cent, more than double the global average.Nigeria and South Africa represent $700 billion — one-third — of the $2.1 trillion in gross domestic product across all 55 African countries, and are home to 20 per cent of Africa’s population.