Remittance of payments from the United States and United Kingdom into Tanzania may soon become easier and cheaper, thanks to the proposed new arrangements.
The Financial Technology firm of Tanzania, NALA, has announced a partnership with Cellulant to power remittance payments from the UK and the US, into among other countries; Kenya, Uganda, Rwanda, Ghana and Tanzania.
The partnership aims to reduce the cost of sending money from America and European countries into the African Region.
As it happens, transaction fees have been absorbing a large percentage of the billions sent to Africa, from overseas countries every year.
The cost of sending money to Africa is the highest across all regions.
Africans in diaspora have been suffering exorbitant charges when sending money home from abroad.
Tanzania and Kenya remain the highest with charges at 17 percent and 21 percent, respectively, for every USD 200 sent.
Kenya on the other hand, permits PayPal usage in the country, but Tanzania restricts this method of payment.
Over 80 Percent of the money sent to African countries, with exception of South Africa, is done with physical cash.
The remaining 20 Percent is done via digital channels but again, these are subject to multiple layers of fees and paperwork.
NALA, using an easy-to-use app, boasts to enable anyone to quickly send money from British Pounds to US Dollars into all major African currencies at the lowest rates available.
Soon the Euro currency will also be added in the Cellulant and NALA transactions.
Cellulant, on the other hand, is a leading Pan African payments company which provides locally relevant and alternative and rapid payment methods for global, regional and local merchants.