Tanzanian fintech start-up Nala and M-Pesa have partnered to expand International Money Transfer (IMT) services to the European Union (EU).
The global payments company has expanded in Europe by adding 18 new Eurozone nations to its list of send markets after expanding from the UK to the US earlier this year.
The payments company says it is looking to connect Africans globally by enabling members of the diaspora across Europe to send money to Tanzania and other East African countries.
“Together with Mpesa, the expansion opens the potential for significant impact by providing better and cheaper money transfer options to send money home,” said NALA’s Founder and CEO Benjamin Fernandes
Despite the many options for sending money to Africa from abroad, the continent continues to be the most expensive place to send money.
The World Bank estimates average transfer fees to Africa at 9 percent.
Further, many existing options include hidden fees that make it hard to discern the true cost of sending money.
Fernandes adds that NALA is working towards changing the paradigm of financial tools for Africans by providing fair and transparent services to empower people with control over their finances.
Opening Europe allows the company to open its doors to the quarter of African migrants living on the continent.
“NALA’s partnership with Mpesa allows us to amplify our impact by combining NALA’s global reach with Mpesa’s scale and relevance in Tanzania. Together we can advance our mission to increase economic opportunity for Africans worldwide.”
Through the deal the two firms will connect their global infrastructure to bridge the gap in payments from the UK, EU and US to African states beginning with Tanzania.
