Hello Paisa halves remittance fees to Zimbabwe
Money transfer service Hello Paisa has dropped remittance fees by half on every transaction to Zimbabwe, and is also offering digital banking accounts with zero transaction fees, to assist migrants impacted by the COVID-19 pandemic.
The fintech says cost-effective remittances are an essential service as they are a lifeline for the migrants and those they support across borders.
According to Hello Paisa, migrants resident in SA have found it more difficult than ever to send money back home due to the pandemic, which is devastating, as those who depend on receiving the funds are unable to buy basic goods and cover household expenses.
Earlier this year, the World Bank forecast that in the wake of the COVID-19 economic crisis, remittance flows to Sub-Saharan Africa would fall by 23.1%.
“A substantial amount of Zimbabwean migrants call South Africa home and their earnings are a vital source of income for their families. The inability to send money home is a catastrophic circumstance for both our residents and their loved ones. As expenses are a major pain point for all South African residents – now more than ever – it is our mandate to create access to the most cost-effective remittance service,” says Sayjil Magan, MD of Hello Paisa.
Hello Paisa says it has also taken steps to broaden digital remittance networks to make it easy to send funds by offering a free digital banking solution to its subscribers.
“Not only are migrants offered a leading money and goods remittance service, but now also a free bank account to save their hard-earned money,” says Magan.
“Zimbabwe is currently facing its own unique hardships economically, and Zimbabweans residing in South Africa are very cognisant of getting support to their family as safely and affordably as possible. As such, we focus on three forms of collection: cash, mobile wallet or bank account transfers, and these cross-border transactions are settled instantly.”
Magan says fintech companies have an essential role to play in financial empowerment of Africa’s most vulnerable, in ways that traditional financial institutions cannot, especially during disasters like the COVID-19 pandemic.
“If we are to recover from the recession caused by the coronavirus pandemic, fintech and the private sector alike must adjust our strategies to ensure people’s survival. One of many steps we are taking to alleviate the economic hardships of our customers is to ensure the cheapest and most accessible forms of financial services.”