Online service bids to transform African money transfer

[ZubeirAwal]

LONDON — Remittances sent from abroad are a lifeline for millions in Africa, and now online services are aiming to make it quicker and easier to transfer money to the continent.

According to the World Bank and the African Development Bank, members of the African Diaspora send home around $40 billion every year. But the actual figure is likely to be significantly higher as a large proportion of funds are transferred through various informal channels.

Now, Ismail Ahmed, founder and chief executive of WorldRemit, says he’s found a way to make the whole process easier, while helping Africa minimize its dependence on cash.

His service allows users to send money to family and friends without having to visit agents and collect cash from their bank accounts. They can process transactions online, while funds are immediately available for collection in Africa, or credited to mobile accounts of recipients.

Speaking to CNN’s Nima Elbagir, Ahmed said: “We are helping to move towards cashless economies in many parts of Africa.”