The cheapest option for your specific transfer depends on where you’re sending from, where the money is going, how much you’re moving, and how quickly it needs to arrive.

Understanding how these services make money helps you avoid overpaying. Some charge upfront fees with transparent exchange rates. Others advertise zero fees but mark up the exchange rate.

The total amount your recipient receives matters more than how the costs are structured.

This guide breaks down the services by category and explains what to look for when comparing options.

Digital-first remittance platforms

These companies operate primarily online and through mobile apps. They tend to have lower costs than traditional services because they don’t maintain physical locations.

Africhange

Africhange operates across key remittance corridors from Canada, the UK, and Australia into West and East Africa, with a focus on cost efficiency and speed.

Part of Africhange’s appeal lies in its regulatory footing. Its Nigerian subsidiary holds an International Money Transfer Operator licence from the Central Bank of Nigeria, which allows the company to process remittances directly rather than through third-party intermediaries.

This structure shortens settlement timelines and reduces avoidable costs once funds are received in Nigeria.

Africhange currently supports transfers from Canada to Nigeria, as well as to other markets including Ghana, Kenya, Benin, Togo, and Senegal. The platform also supports multiple currencies on both the sending and receiving sides, which makes it easier to manage cross-border payments without constant conversion headaches.

LemFi

LemFi has emerged as one of the fastest‑growing platforms for remittances to Africa. It combines low cost with a smooth app experience that works well for people sending money from North America, the UK, and Europe.

Users open an account, verify their identity, and then send money directly to bank accounts or mobile wallets in countries like Nigeria, Ghana, Kenya, Cameroon, Senegal, and others. Most corridors carry zero transfer fees, and many transfers arrive within minutes.

You can hold balances in US dollars, British pounds, Canadian dollars, and other major currencies, then convert and send at competitive exchange rates.

The platform is regulated in the UK and Canada and holds licences to operate remittances into key African markets. Funds typically reach a recipient’s bank or mobile wallet in minutes. A loyalty or rewards component may appear, providing additional value for frequent senders.

Remitly

Remitly is one of the long‑standing players in cross‑border money transfers. It operates through a simple app and web interface that walks you through sending money step by step. When you use Remitly you choose between two ways to send. One option keeps fees low but takes a little longer.

The other delivers faster if timing matters more than cost. You can fund transfers with a bank debit or credit card, and your recipient can get money straight into a bank account or popular mobile money wallets used in many African countries.

WorldRemit

WorldRemit is similar to Remitly but supports a wider range of payout methods in many countries across Africa. In addition to bank deposits and mobile money, WorldRemit sometimes offers cash pick‑up options at local partners if the recipient prefers that. The interface is straightforward. You enter the amount, pick where you are sending it, choose how the recipient will collect the cash, and the app shows fees and delivery times before you confirm.

WorldRemit tends to settle transfers within a few hours for most corridors, though it can vary by country and bank processing times.

Wise

Wise focuses on transparency and cost efficiency. Unlike many banks or money transfer services, it uses the real mid‑market exchange rate and charges a single, upfront fee. This means the recipient gets the exact amount shown before you confirm the transfer, without hidden markups.

Wise is particularly suitable if keeping costs low is your priority, and you can wait for the transfer to process. Delivery times vary depending on the destination bank, but most transfers arrive within a few hours to a couple of days. The platform supports multiple currencies and countries, making it convenient for repeat transfers with predictable pricing.

Traditional networks

These established services have extensive physical networks across Africa. They’re useful when recipients need cash pickup or live in areas without reliable banking infrastructure.

Western Union

Western Union has one of the largest agent networks in Africa, making it a reliable option for recipients who may not have access to a bank or mobile money account. The service supports cash pickup, bank transfers, and mobile money in many countries.

Cash pickup is fast, often available within minutes, but it is more expensive than other payout methods. Bank transfers and mobile money can be cheaper, though delivery times may vary depending on the destination and local partners. Fees are generally higher than digital-first platforms, and exchange rates include a markup.

You can send money through the Western Union website, mobile app, or at a physical agent location. Online bank transfers are typically less costly than cash pickup, making them the better option when speed is not the top priority.

MoneyGram

MoneyGram operates across Africa with a large agent network, covering many urban and semi‑urban areas. The service allows recipients to collect cash quickly, often within minutes or a few hours, though timing can vary depending on the location.

Transfers can be sent online, via the MoneyGram app, or at agent locations, including major retailers. In addition to cash pickup, the platform supports bank transfers and mobile money in many countries. Fees for cash pickup are sometimes slightly lower than Western Union, but the cost depends on the sending corridor and payment method.

MoneyGram provides a reliable alternative for recipients without bank accounts or mobile wallets, while also offering multiple ways to receive funds for those who prefer digital options.

Mobile Money and regional platforms

Mobile money has transformed how people send and receive money in Africa. In several countries, more adults now have mobile money accounts than traditional bank accounts. This widespread adoption has made it easier to move money quickly, securely, and without relying on banks.

Mobile Money overview

Mobile money lets people receive, store, and spend money using just a mobile phone, without needing a bank account.

Major providers include M‑Pesa in Kenya and Tanzania, MTN Mobile Money across several countries, Orange Money in West Africa, and Airtel Money in multiple markets.

Most international transfer services now support sending money directly to mobile money accounts. This method is often faster and cheaper than using bank transfers or cash pickup, making it a popular choice for both senders and recipients in some countries.

Wave

Wave is a mobile money platform that operates in Senegal, Côte d’Ivoire, Burkina Faso, Mali, and Benin. Transfers from the US to Wave accounts typically carry no transfer fees. The exchange rate is the main cost for the sender.

Recipients need a Wave account to receive funds, and creating one is straightforward. Wave functions as both a transfer service and a mobile money wallet, allowing users to send, receive, and spend money through the app.

Coverage is currently limited to the West African countries where Wave operates, but within those markets, the platform is fast, simple, and easy to use.

Sending money to Africa is more efficient now than it was years ago. Digital platforms are driving down costs and forcing greater clarity in pricing. Whether you prioritise cost, speed, or convenience, there are options that fit your needs. Check fees and exchange rates before you hit send, and choose the right tool for your corridor and frequency.

It notes that beyond supporting the lives and livelihoods of families in the senders’ countries of origin, remittances or cash transfers represent solidarity and symbolise the generosity and resilience of the African community on the continent and beyond.

In 2023, remittances in Africa reached almost $100 billion, equalling nearly 6 per cent of the continent’s Gross Domestic Product (GDP) and exceeding Foreign Direct Investment (FDI) figure of $48 billion.

Within Sub-Saharan Africa, key markets for remittances are Nigeria, Kenya, Ghana and South Africa, with Nigeria alone receiving nearly half of all Sub-Saharan Africa’s remittances.

Remittance services are crucial for efficient international transactions, particularly for business involved in cross border operations. Remittance services facilitate the transfer of money from individuals and organisations to recipients in another country, playing a key role in Africa’s GDP growth and overall economic landscape.

Africa’s entrepreneurial sector and digital economy continue to expand rapidly. As such, the importance of efficient and reliable remittance services is increasing. For businesses looking to engage in cross-border trade, pay remote employees or manage international vendor relationships, understanding the dynamics of Africa’s remittance market is essential.

Current Landscape of Remittances in Africa

Africa is one of the largest recipients of remittances globally, with billions of dollars sent home each year by the African diaspora and businesses engaged in international operations.

These remittances have significantly assisted in funding entrepreneurial ventures and stimulating regional economic growth.

However, the cost of digital remittances remains high, particularly in Africa. Research indicates that in 2023, the average cost of sending money through mobile applications to Africa was around 5 per cent, although it was lower in West Africa, at approximately 3 per cent.

The rise of digital technology, especially, is revolutionising traditional remittance channels like bank transfers and money transfer operators. Digital wallets, mobile money platforms, and blockchain-based solutions are emerging, making remittances faster, more accessible, and more affordable for businesses.

Who Are the Key Players in the African Remittance Space?

The African remittance landscape is populated by a variety of service providers, each bringing unique strengths to the market. From traditional money transfer operators to cutting-edge fintech platforms, businesses have a wide range of options to choose from.

Here are some of the leading players.

1. SeerBit

SeerBit is a Pan-African payment solutions provider dedicated to empowering SMEs and enterprise businesses by addressing barriers such as payment fragmentation and access to cutting-edge financial products, including remittance services. Known for its innovation and commitment to making payments simple, SeerBit ensures every business has the tools to serve their customers efficiently and scale their enterprise for growth.

2. Western Union

Western Union is a long-standing player in the global remittance market and maintains a strong presence in Africa. Known for its extensive network of physical locations, it offers reliable services even in rural areas, particularly where banking infrastructure may be limited.

3. WorldRemit

WorldRemit is a digital-first remittance provider, focused on simplifying the remittance process through its mobile and web platforms. It has gained popularity in Africa for its speed, convenience and lower fees compared to traditional players.

4. Sendwave

Sendwave specialises in mobile-based remittance services, focusing on low-cost, fast transactions primarily to African countries. It has become a preferred choice for the African diaspora due to its competitive fees and efficient service.

5. Flutterwave

Flutterwave is a leading African fintech company offering comprehensive financial solutions, including remittance services. It partners with global players like PayPal and Alipay to facilitate cross-border payments, making it a strong contender for businesses.

Challenges in Africa’s Remittance Market

Despite the growth and innovation in the African remittance space, several challenges persist:

Regulatory Issues: Strict regulations, such as Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements, can make onboarding clients a long and complex process. In some countries, foreign exchange controls and restrictions on cross-border transactions add another layer of complexity.

High Fees: While digital solutions are driving down costs, traditional remittance services are still notorious for high fees. For businesses sending large sums or handling frequent transactions, these costs can accumulate and affect their bottom line.

Slow Processing Times: Traditional channels can take days for funds to reach recipients, which can hinder business efficiency, especially when dealing with urgent payments.

Accessibility in Rural Areas: In regions with poor banking infrastructure, access to remittance services can be limited. Digital platforms are bridging the gap, but there are still challenges in reaching remote locations.

Banking and Infrastructural Limitations: Inconsistent infrastructure, unreliable internet, and limited banking networks in some areas can slow down or complicate the remittance process, particularly for businesses operating in multiple countries.

Opportunities for Businesses Using Remittance Services

For businesses operating in or with Africa, remittance services such as those provided by SeerBit offer several strategic opportunities:

Cross-Border Transactions: Remittance services simplify cross-border payments for businesses dealing with international clients or suppliers. This can include paying for goods and services, settling vendor invoices or transferring funds between subsidiaries in different countries.

Payroll for Remote Teams: With the rise of remote work, companies are increasingly using remittance services to pay international employees and freelancers. This approach enables businesses to hire top talent from different parts of Africa without facing payroll complications.

Vendor Payments: Efficient remittance services ensure timely and reliable payments, allowing businesses to maintain strong relationships with suppliers.

Regulatory Considerations for Businesses

Operating in Africa’s remittance market requires a keen understanding of the regulatory environment. Here are some of the critical factors businesses must consider:

Central Bank Regulations: Each country has its regulatory framework, often overseen by central banks, that governs remittance services. Companies must comply with local laws and guidelines related to cross-border payments, exchange rate management and transaction reporting.

AML and KYC Compliance: To combat fraud and financial crime, businesses must adhere to strict Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements. These measures are designed to ensure the transparency and security of remittance services, though they can be resource-intensive.

Currency Exchange: Many African countries experience significant fluctuations in exchange rates. Companies need strategies to manage currency risks, such as hedging or using digital currency solutions that offer more stability.

To navigate these complexities, businesses should partner with experienced payment providers that have a strong track record in compliance and risk management.

What is the Future of Remittance Services in Africa?

The future of remittance services in Africa will be shaped by several trends.

Increased Fintech Investments: The rise in fintech investments is fuelling the development of innovative payment solutions that cater to the unique needs of African businesses. More startups are entering the market with niche offerings, targeting specific pain points like fee reduction and transaction speed.

Blockchain and Digital Currencies: Blockchain technology and the introduction of digital currencies are poised to make remittances faster, cheaper and more secure. Some companies are already using blockchain to bypass traditional banking networks, reducing costs and increasing transparency.

Integration with Business Ecosystems: Future remittance services are expected to integrate more seamlessly with other business tools, such as Enterprise Resource Planning (ERP) systems, accounting software and e-commerce platforms. This will provide businesses with more streamlined financial operations.

Businesses that stay ahead of these trends and adapt their strategies will be well-positioned to benefit from the evolving remittance landscape in Africa.

The continent’s remittance market is both dynamic and challenging, with numerous opportunities for growth. In a rapidly globalising economy, businesses cannot afford to overlook the significance of having a clear African strategy for remittance services. Understanding the current landscape, key players and the regulatory environment remain essential factors to guide informed decisions that enhance their financial operations.

Businesses can finetune their African strategy by exploring partnerships with trusted remittance services providers that align with their specific cross-border needs, ensuring they remain competitive in an increasingly digital and interconnected world.

In other words, Nigerians abroad will no longer be able to send dollars or foreign currencies into bank accounts in the country.

IMTOs removed the option of sending dollars or other foreign currency to Nigeria on their websites and mobile applications in compliance with the CBN directive.

Consequently, Nigerians abroad are only allowed to transfer the naira equivalent amount of the foreign currency.

However, IMTOs are removing the option of sending dollars to banks accounts in the country and are exchanging at the rate of N1,450 to the dollar.

One of the IMTOs, WorldRemit, in a notice to customers, said:

“we can no longer support transfers in USD – only in Naira. If you’re about to send money to Nigeria – this is important. The Central Bank of Nigeria (CBN) has directed that it’s no longer possible for any money transfers to be paid out in USD in Nigeria.”

Also, Sendwave issued a notice to customers, thus:

“In compliance with a recent directive from the Central Bank of Nigeria (CBN), we regret to inform you that Sendwave, along with all money transfer operators, is no longer able to support USD transfers to Nigeria. We’d encourage you to switch to sending Naira transfers instead.”

The CBN had earlier instructed banks to begin paying Dollars and other foreign currency payouts from abroad in Naira to boost forex supply.

“All inbound money transfers to Nigeria shall be paid to beneficiaries in Naira through a bank account, or cash. Proceeds of IMTO more than the equivalent of $200 shall be paid through an account.

“Cash payments shall be made upon the provision of a satisfactory/acceptable means of identification. Where the beneficiary does not have an account with the IMTO agent bank, the agent bank shall credit the beneficiary account in another bank. The exchange rate for the Naira payment shall be at the prevailing rate in the Nigerian Foreign Exchange Market,” the CBN guideline reads in part.

The rapid growth of mobile money technology has disrupted the financial sector in Sub-Saharan Africa, fuelling social-economic transformation in many countries and the growth has provided considerable benefits to citizens looking to access reliable financial services. 

In fact, Africa accounts for 70% of the world’s $1 trillion USD mobile money value. In 2021, the value of Africa’s mobile money transactions increased 39% to $701.4 billion USD from $495 billion USD in 2020, highlighting the future of banking in the continent as mobile money reduces transaction costs for users and helps households to manage their cash flows more effectively, manage risk and build working capital.

In Cameroon, the rise of mobile money has enabled 98% of the population to be covered by a mobile GSM network (2G and above), accelerating financial inclusion and improving the welfare of low-income households.

However, criminals have also discovered the opportunity this presents and the National Agency for Information and Communication Technologies (ANTIC) reported that cybercrime caused financial losses of 12.2 billion CFA Francs to the Cameroonian economy in 2021, double the losses reported in 2019.

These losses were primarily due to scamming, and phishing, a technique used by fraudsters to obtain personal information to perpetrate identity theft amounted to 6 billion CFA Francs. 

With these developments, managing security and privacy in a dynamic and vulnerable environment remains crucial. WorldRemit, a leading global payments company, has identified the top four money transfer scams occurring in the industry in 2023 that Cameroonian residents should look out for.

The four scams include email scams, such as taxation scams, where scammers impersonate the ATO, and online dating scams, where scammers can play on emotional triggers to get you to send money.

In 2021, Interpol’s African Cyberthreat Assessment Report indicated that the highest-reported and most pressing cyber threat in Africa was indeed online scamming.

Additionally, online shopping scams, such as overpayment scams, where scammers ask you to ‘refund’ an overpayment before you realise the credit card has been stolen or a payment receipt is fake, and Facebook impersonation scams, including money flipping scams that promise quick cash if you invest.

“WorldRemit takes online security very seriously and we understand many of the tricks and techniques behind some of the most popular scams. We want to educate Cameroonians on what scams look like so that our customers can understand what to avoid and protect themselves from getting scammed,” said Imane Charioui, Director of Francophone Africa at WorldRemit.

“Always double-check who is asking you to send money, and if you are not comfortable with the transaction, don’t pursue it. Also avoid using third-party intermediaries, or agents who offer to make transactions on your behalf, and if you need to transfer money overseas, once you have checked the recipient, use a trusted money transfer service like WorldRemit to ensure that your money does arrive in time.”

Imane Charioui shares her top tips to avoid these four popular money transfer scams.

Tips for avoiding email scams: 

• Don’t click on links or open attachments in an unsolicited email.
• Check the sender’s email address matches the website address of the organisation it says it’s from.
• Be wary if the email doesn’t use your name and says something like “Dear customer”.
• Avoid emails with a sense of urgency, asking you to act at once.
• Beware of emails with poor grammar and spelling mistakes.
• Never share personally identifiable information with someone who has contacted you unsolicited. This includes banking and credit card information, your birth date, and Social Security/ Social Insurance numbers.
• Keep your devices updated with antivirus software to protect yourself from any malware.

Tips to avoid online dating scams: 

• Don’t trust those asking for you to share money, gifts or your bank account/credit card details.
• Use social media channels and online to see whether their dating profile is consistent with their other online profiles. 
• As a rule, we advise that you shouldn’t send money to someone unless you have met them in person or via video. 

Tips for avoiding online shopping scams: 

• Make sure that the website has ‘https’ in the URL (the extra ‘s’ is for ‘secure’) and a small lock icon on the address bar. Even then, the site could be unreliable. 
• Read reviews about the quality of the merchandise, and make sure you’re not buying cheap and/or counterfeit goods.
• Check on the website for a clear refund policy and method of contact should you have a customer query.
• The website should not include an option to use an IMT to make the payment.

Tips for avoiding impersonation scams:

• Don’t accept friend requests from people you don’t know and have never met.
• Don’t share your password with others.
• When logging in, use two-factor authentication.
• Avoid connecting to public and free Wi-Fi networks.
• Keep your browser and apps updated.
• Add an added layer of security and use proactive cybersecurity software.

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Innovation is a crucial driver of economic development in Ghana, and over the past few years, adopting disruptive technologies has accelerated rapidly. The country continues to be a digital leader in Africa, and according to the Global Innovation Index (GII), it ranks 5th in Sub–Saharan Africa.

In Ghana’s financial sector, there have been recent government and private sector initiatives such as The Cash Lite Roadmap and The Digital Financial Services Policy that aim to adopt new technologies providing financial access to millions who have previously lacked access.

In 2022, The World Bank approved $200 million to aid in increasing Ghana’s mobile internet access and broadband services – providing support to over six million people in the lower-income demographic. The Ghana Digital Acceleration project is set to enhance the efficiency and quality of selected digital public services in Ghana. Thus, strengthening the digital innovation ecosystem and aid in creating better economic opportunities.

Despite the progress, several challenges persist as most of Ghana’s infrastructure is concentrated in urban areas, with large sections of the country’s rural population without effective mobile coverage.

Understanding financial innovation

Financial innovation is paving the way for new financial products, services and operations, and transforming how consumers can understand their finances.

It has enabled Ghanaians to change how they save, borrow, invest, and pay for goods and services. Today, financial innovation has come through advances in technology, and payment systems, increasing the number of financial providers available to consumers and businesses – as a result, the fees customers are faced with are more competitive and consumers have more choices in the provider they wish to use.

In 2022, The Bank of Ghana (BoG) introduced the Central Bank Digital Currency (CBDC), which aims at promoting financial inclusion and complements the digital payment industry.

It is currently being piloted in rural areas with limited internet access to ensure a countrywide robust and inclusive financial sector is available to all.

The BoG’s introduction of E – Cedi aims to encourage the Ghanaian digital payment and financial services industry, especially in financial inclusion, promoting cross-border payments and helping people reach their financial goals.

Mobile banking in Ghana

Today, mobile money has been a revolutionary tool for expanding access to financial services in disadvantaged areas with many banks in Ghana offering comprehensive apps with options to deposit checks, pay for merchandise, transfer money to a friend, or find an ATM instantly.

As always, It is still important for customers to establish a secure connection before logging into any banking app to avoid their personal information being compromised.

Ghana has become one of the fastest-growing mobile banking markets in Africa. As of 2022, almost half (38.9%) of consumers aged 15 and older had a mobile money account in Ghana.

A recent study by The Abdul Latif Jameel Poverty Lab showed that households can better respond to unforeseen difficulties when they have access to mobile money and can facilitate higher savings for households.

Importance of remittances

As of 1 June 2022, WorldRemit users globally sent more than GBP 145 million back home to Ghana, boosting economic development and improving the lives of many families.

The rise of global remittance players such as WorldRemit in Ghana, and the advancement of digital transactions and innovations, have continued to provide a safe and secure money transfer system.

Using blockchain technology in the remittance industry has important social benefits, as it could lower costs for customers.

This is possible as the technology uses encrypted distributed ledgers to enable reliable and real–time transactions verification without the use of third parties.

The lower costs are in line with the Sustainable Development Goals (SDG) of the World Bank to reduce the cost of remittances from 7% to 3% by 2030.

• 82% of remittance senders agreed that the cost of living for those they send money to has increased since the start of the year
• 45% of senders restricting remittances solely to immediate family members as a result of inflation
• More than half (54%) of remittance senders have taken up a side-hustle since the global COVID-19 pandemic; almost one-fifth (19%) did so to continue to be able to support friends and family abroad

WorldRemit, a leading digital remittances company, announces the results of its second Cost of Living index, where the organization has sought to understand how the worsening inflation crisis has affected the lives of international money senders around the world.

The survey found that 82% of remittance senders, including Cameroonian migrants, agreed that the cost of living for the people who they send money to has risen since the start of the year.

Highlighting the impact of inflation on people around the world, almost half (45%) noted they now only send money to immediate family, rather than friends and distant relatives. 1 in 9 people worldwide rely on money sent from friends and relatives who have migrated abroad for work.

With several factors contributing to increased financial pressure, new data showed that 72% of respondents in the US, 41% in Australia, and 44% in the UK have taken up a side hustle (a job in addition to their main source of income), with 27% of respondents on average across our three markets indicating they did so to support the increase in their own cost of living.

Of the respondents who cited having a side hustle, 89% reported that they would maintain their side hustle in the next 12 months.

Households around the world are set to re-examine their spending habits in light of inflation, with more than a quarter of respondents (26%) saying that they are curtailing discretionary spending on entertainment such as dining out or going to the cinema or theatre.

For example, in the UK, nearly two-thirds (65%) of people noted concerns regarding the cost of utility bills, highlighting the change in spending habits of UK households as a result of the energy crisis.

“The inventive solutions, such as side hustles, that we are seeing as a result of the current economic landscape point to the resilience of migrants and their commitment to financially supporting loved ones overseas,” said Imane Charioui, Director of Francophone Africa & Middle East, WorldRemit “These findings demonstrate the grit of economic migrants in adapting to wider financial stresses and the rising cost of living while still meeting the needs of their families at home, and abroad.”

The multi-country WorldRemit study was fielded in October 2022 to determine the ongoing effects of the increased cost of living on international money senders in the United States, United Kingdom and Australia, resulting in observations from 2,687 international remittance senders.

Whilst there were minor differences, broadly speaking, 1st generation migrants’ views were aligned with those of the overall sample in our survey.

Over the past year, remittances have continued to be a vital source of foreign income in many developing countries across Sub – Saharan Africa, contributing significantly to changing the lives of millions of people.

This year, remittance flows to Ghana are expected to grow to about $4.5 billion, positioning Ghana as one of the highest recipients of remittance inflows in Africa.

Money transfers from Ghanaian migrants overseas have been crucial in enabling many to build resilient households as they have been able to access healthcare services, quality education, and provide food for their families.

With close to over 6.8 million people living below the poverty line in Ghana, and the incidence of multidimensional poverty in urban areas standing at 27% and 64% in rural Ghana, remittances have significantly helped accelerate poverty reduction.

According to the latest 2022 year-in-review by World Bank, remittances in Sub-Saharan Africa grew an estimated 5.2% to $53 billion in 2022, compared with 16.4% last year. However, in 2023, remittances are projected to soften to 3.9% growth as many nations face adverse conditions in the global and regional environments.

All eyes are now on what 2023 will bring for millions of families dependent on remittances each year with the widespread efforts to increase COVID-19 vaccination rates and stabilise the Ghanaian economy.

With these factors in mind, remittance expert Gbenga Okejimi, Country Manager, Nigeria and Ghana, WorldRemit, shares his top market trends for 2022 and beyond.

Remittance growth continues

As the preference for digital tools and services to conduct money transfers increases, digital remittances will continue to grow steadily throughout 2022.  As of 1 June 2022, WorldRemit users globally sent more than GBP 145 million back home to Ghana.

This shift towards digital, deeply accentuated by the pandemic, is predicted to continue as many tech-savvy customers opt for affordability and greater convenience.

Safety comes first

It is predicted that money transfer companies will continue to prioritise safety measures above all else. For international markets that enable markets that enable migrants to send money, more companies will integrate additional features that allow them to validate the identification of their customers, from phones’ IP addresses to the validation of identity documents.

On the receiving side, WorldRemit supports Ghana by providing a robust network of cash pick-up locations with our partners for greater convenience and accessibility. All connections through our website and mobile app are secure and encrypted. We have also built a sophisticated automated machine-learning system for fraud detection.

Speed will continue to be of the essence.

Even though some customers are used to waiting hours or even days for a bank wire transfer to arrive at its destination, expectations for the speed of money transfer apps and platforms are the opposite. With new advancements across the digital landscape, users expect money to be sent and received in minutes.

To deliver the best and quickest customer experience, companies will continue to invest in enhancing their technologies. Hence, data exchange with financial institutions is more seamless, and the flow of remittances is uninterrupted.

Our technology at WorldRemit allows 90% of money transfers sent to Ghanaians to be ready within minutes.

Money transfer services that work with API technology, which generates the confirmation that the receiving account or wallet is ready to receive the money, will be able to ensure transfers are completed almost in real-time. In addition, increased communication and tracking features will be integrated at a global scale for users’ peace of mind.

The simpler, the better

Companies will focus on making things as simple as possible, with a strong tendency to decrease the number of steps in each money transfer – from downloading the application and creating the user profile to adding the beneficiary. The trend toward more efficiency and effectiveness will ensure sending money becomes as easy as sending a text.

Digital remittances eliminate the need to go to a fixed payment point, saving users time and money. Living in the uncertainties of a pandemic, senders and receivers are prioritising safety and looking for a simple, straightforward solution for their transactions.

Technology has gained a more prominent role in people’s lives and money transfers have been no exception. A relatively new industry about ten years ago, digital money transfers and remittances are not only here to stay, but they are also slowly becoming the method of choice for customers, by proving that they’re just as safe as a bank transfer, and much faster, cheaper, and more convenient.

Some schools may do their bit to teach financial literacy, but it is ultimately your guidance that’s needed to help them find their wings.

Given the baseline of poverty and unemployment in Africa, providing our children with early financial education and mentorship will create sustainable livelihoods for them in the years to come. 

Imane Charioui, Director of Francophone Africa, WorldRemit, has a few tips to help Cameroonian parents teach their kids how to be money savvy.

1. Let’s talk money 

In many Cameroon homes, parents may not want to chat about family finances in front of their children, but in order to nurture a child who’ll be in good financial shape as an adult, it’s really worth starting the conversation early – without, of course, bringing up any real financial worries.

So, consider chatting with the kids from an early age about routine purchases like food, paying for education, transport, and holidays. Discuss the difference between the things you need such as food, water, heating, and the things you want – holidays, technology and clothes or shoes, like the latest trainers.

When they’re young, take them shopping to the local markets, look at the price labels and pay for items with cash, rather than paying with a seemingly ‘magic’ credit or debit card. Cash is a tangible thing – once it’s used, it’s gone. Kids need to learn that.

2. Introduce them to money

As soon as your child can count, introduce them to money. Show them some CFA Franc and coins and teach them the value of each one. Best of all, play some money games with them – engaging games to help them understand the value of coins, how to count money and work out change.

You can play these games online or as board games. Monopoly is an old favorite that not only gets children handling money but also teaches them the basics of investment. You can also create your own homemade games. After all, what child doesn’t love setting up and playing shop? Play and learning really can go hand in hand.

3. Get them budgeting

Whether your children earn their own money with an after-school job or get gifts and pocket money from their favorite uncle, it’s worth introducing the idea of budgeting early. And make it fun!

Yes, budgeting can really be fun if you draw up a colorful chart for them to fill in. Two columns: ‘money in’ and ‘money out’.

For younger children, they can learn to put their money in three different piggy banks or jars – money for spending, for sharing/gifting, and for saving. By budgeting, your children will begin to take more personal responsibility for managing their money.

4. Start them saving early

It’s important to teach your children that however much money they may be given or earn – they don’t need to spend it all at once. It is far better to set some goals and save for the future!

So, help them open a savings account – a digital savings account may be best. After all, our children will be doing most of their banking online in the future. The earlier you get them managing their finances on a computer, tablet, or mobile phone, the better.

Once they have a savings account – you can look at the monthly statements with them – and explain how the account grows because of deposits and interests. Encourage your older children to put larger sums away for something they really want like a new bike or computer.

By saving, your children will learn how rewarding self-discipline and goal setting can be.

5. Working for the things they want

When your child sets their heart on anything from a book to a bike, instead of instantly reaching for your credit card – encourage them to earn the money for themselves. No one wants work interfering with their children’s studies or play, but there are small jobs they can do to earn a little and pay for the things they want.

Young children can top up their piggy banks by doing household chores. Teens (10- to 12-year-olds) can do babysitting, or gardening. And older teens can get part-time work in shops, restaurants, and holiday work in local cafes. 

The benefit of this? To give them the responsibility and self-satisfaction of earning their own money and saving from a young age. In this way, they can really understand and begin to appreciate the value of money.

6. Spending, not overspending

Now comes the really fun part. Once your child has saved the right amount, they can go shopping and then spend within a budget. Of course, advise them not to overspend. But as long as they’re mature enough, it’s best to leave the purchase decisions to them. They really need to be in control of their own decisions when it comes to money.

If you help them become smart spenders, you’ll instill in them some valuable lessons about how personal choice relates to managing money. 

Exchange rates are crucial in impacting the trade and economic performance of a country and often, they indirectly impact many different areas of your day-to-day life, from the cost of your groceries at the local market, to the cost of fuel, job opportunities and even the interest rate on your bank loans. 

To help you get a good deal on your next money transfer, Susan Tanaka Sitemere, Country Manager, Zimbabwe and South Africa, WorldRemit shares some insights into how the exchange rate works.

What is an exchange rate?

The exchange rate is the amount that one currency is worth when compared to another currency. For many of us the only time we deal with them directly is when it comes to traveling or sending money overseas.

What’s better – a high or low exchange rate?

A higher exchange rate is better if you’re buying or sending currency, as it means you get more currency for your money. A lower rate is better if you’re selling the currency. This way, you can profit from the lower exchange rate.

What is FOREX?

FOREX (foreign exchange market or FX) is a global market for currency trading used by individuals, businesses, and banks. If you make a transaction that requires a currency conversion, FOREX determines how much value you get for your money.

To put it in perspective, if you bought a car from a dealer in Harare and paid in US Dollars, you made a FOREX transaction. However, a significant portion of the foreign exchange happens for practical purposes – for example, when you’re travelling or buying foreign goods. However, a majority of currency conversion is made to earn a profit.

How often do exchange rates change?

The FOREX market never sleeps; it is active all day and all night. Exchange rates don’t change once a day or even once an hour; they are constantly fluctuating in response to the Zimbabwean economic, political changes and developments as they occur around the world.

What is a floating exchange rate?

A floating exchange rate is where the currency price of a nation is set by the forex market based on supply and demand relative to other currencies. This is in contrast to a fixed exchange rate, where the government determines the rate. Most countries around the world use a floating exchange rate and when a country uses this kind of an exchange rate, its government actions can only influence the rate, not regulate it.

What is a fixed exchange rate?

A fixed exchange rate is a currency that isn’t influenced by FOREX. Instead, the government controls the rate and regulates its value. Countries with fixed exchange rate like Hong Kong, Denmark, or Saudi Arabia, usually peg the exchange rate against an internationally popular currency (US Dollar or Euro). The country’s government then holds an abundant supply of both of these currencies. This allows them to buy and sell currency as required to keep their exchange rate at a fixed value.

What is an interbank rate?

Interbank rate, sometimes also referred to as the mid-market rate, is used when banks exchange currencies between themselves. This rate is usually better than the rate consumers receive. This is because currency exchange services aim to profit and often add fees or a mark-up to their exchange rate.

What factors influence the exchange rate?

Here is a brief explanation of some of the critical factors that help to determine the exchange rate.

• Supply and demand – If there’s plenty of currency to go around and low or average demand, then the exchange rate is usually low. If there is less currency in circulation and the demand is high, then the exchange rate increases.
• Consumer confidence – When a country’s population is confident in its economy’s stability (low unemployment or inflation), consumer spending and investment tends to be higher. This makes the currency more attractive to investors resulting in a higher exchange rate.
• Balance of trade – A country’s balance of trade looks at the value of exports compared to the value of imports. If the balance is not equal, then this will affect the exchange rate. If exports are higher than imports, then the country is sending more of its currency abroad. And the higher the supply of currency, the lower the demand and exchange rate.
• Inflation – Inflation is the rate at which prices for goods and services are rising over time within an economy. When a country has a consistently low inflation rate, its currency is generally more valuable, resulting in a higher exchange rate.
• Interest rates – Interest is the fee that banks charge consumers to borrow money. The higher the interest rate is, the more you will be charged.
• Political unrest – Political upheaval causes uncertainty, which can put FOREX traders off, lowering demand for the country’s currency and decreasing its value.
• Country’s debt – If a country is in debt, then its currency is considered a riskier option by foreign investors. This can cause the country’s currency to decrease in value and the exchange rate to fall.

Where to get the best exchange rate?

A good exchange rate is as close to the interbank rate as possible. You can find out what the current interbank rate is with a quick search online. And although you can’t control the currency market, you can choose who you transfer or exchange your money with. The two main options for sending money abroad are bank wire transfer or online money transfer.

Bank or building society wire transfers

Making the international transfer with your bank or building society may sound like a simple option, but the service comes with its price.

Some banks charge fixed fees for sending money abroad, which can end up being too expensive if you’re only sending a small sum of money. Many banks also offer low exchange rates, a tactic used to charge further ‘hidden fees’ on international transfers.

On top of this, wire transfers can be slow – sometimes taking days to arrive with the recipient, and not all recipients want or can receive money in their bank account.

Online money transfer services

Online money transfer services, like WorldRemit, tend to provide a quicker, more cost-effective way of transferring money overseas. A good online money transfer service will only make you pay a small fee and will offer a fair exchange rate, with any costs shown upfront. They will also often offer a variety of pay-out options, like cash pick up, bank account transfer, mobile money or airtime top up.

Exchange rates are crucial in impacting the trade and economic performance of a country and often, they indirectly impact many different areas of your day-to-day life, from the cost of your groceries at the local market, to the cost of fuel, job opportunities and even the interest rate on your bank loans. 

To help you get a good deal on your next money transfer, Gbenga Okejimi, Country Manager, Nigeria and Ghana, WorldRemit shares some insights into how the exchange rate works.

What is an exchange rate?

The exchange rate is the amount that one currency is worth when compared to another currency. For many of us the only time we deal with them directly is when it comes to travelling or sending money overseas.

What’s better – a high or low exchange rate?

A higher exchange rate is better if you’re buying or sending currency, as it means you get more currency for your money. A lower rate is better if you’re selling the currency. This way, you can profit from the lower exchange rate.

What is FOREX?

FOREX (foreign exchange market or FX) is a global market for currency trading used by individuals, businesses, and banks. If you make a transaction that requires a currency conversion, FOREX determines how much value you get for your money.

To put it in perspective, if you bought a car from a dealer in Accra and paid in US Dollars, you made a FOREX transaction. However, a significant portion of the foreign exchange happens for practical purposes – for example, when you’re travelling or buying foreign goods. However, a majority of currency conversion is made to earn a profit.

How often do exchange rates change?

The FOREX market never sleeps; it is active all day and all night. Exchange rates don’t change once a day or even once an hour; they are constantly fluctuating in response to the Ghanian economic, political changes and developments as they occur around the world.

What is a floating exchange rate?

A floating exchange rate is where the currency price of a nation is set by the forex market based on supply and demand relative to other currencies.

This is in contrast to a fixed exchange rate, where the government determines the rate. Most countries around the world use a floating exchange rate and when a country uses this kind of an exchange rate, its government actions can only influence the rate, not regulate it.

What is a fixed exchange rate?

A fixed exchange rate is a currency that isn’t influenced by FOREX. Instead, the government controls the rate and regulates its value. Countries with fixed exchange rate like Hong Kong, Denmark, or Saudi Arabia, usually peg the exchange rate against an internationally popular currency (US Dollar or Euro). The country’s government then holds an abundant supply of both of these currencies. This allows them to buy and sell currency as required to keep their exchange rate at a fixed value.

What is an interbank rate?

Interbank rate, sometimes also referred to as the mid-market rate, is used when banks exchange currencies between themselves. This rate is usually better than the rate consumers receive. This is because currency exchange services aim to profit and often add fees or a mark-up to their exchange rate.

What factors influence the exchange rate?

Here is a brief explanation of some of the critical factors that help to determine the exchange rate.

Supply and demand – If there’s plenty of currency to go around and low or average demand, then the exchange rate is usually low. If there is less currency in circulation and the demand is high, then the exchange rate increases.

Consumer confidence – When a country’s population is confident in its economy’s stability (low unemployment or inflation), consumer spending and investment tends to be higher. This makes the currency more attractive to investors resulting in a higher exchange rate.

Balance of trade – A country’s balance of trade looks at the value of exports compared to the value of imports. If the balance is not equal, then this will affect the exchange rate. If exports are higher than imports, then the country is sending more of its currency abroad. And the higher the supply of currency, the lower the demand and exchange rate.

Inflation – Inflation is the rate at which prices for goods and services are rising over time within an economy. When a country has a consistently low inflation rate, its currency is generally more valuable, resulting in a higher exchange rate.

Interest rates – Interest is the fee that banks charge consumers to borrow money. The higher the interest rate is, the more you will be charged.

Political unrest – Political upheaval causes uncertainty, which can put FOREX traders off, lowering demand for the country’s currency and decreasing its value.

Country’s debt – If a country is in debt, then its currency is considered a riskier option by foreign investors. This can cause the country’s currency to decrease in value and the exchange rate to fall.

Where to get the best exchange rate?

A good exchange rate is as close to the interbank rate as possible. You can find out what the current interbank rate is with a quick search online. And although you can’t control the currency market, you can choose who you transfer or exchange your money with. The two main options for sending money abroad are bank wire transfer or online money transfer.

Bank or building society wire transfers

Making the international transfer with your bank or building society may sound like a simple option, but the service comes with its price.

Some banks charge fixed fees for sending money abroad, which can end up being too expensive if you’re only sending a small sum of money. Many banks also offer low exchange rates, a tactic used to charge further ‘hidden fees’ on international transfers.

On top of this, wire transfers can be slow – sometimes taking days to arrive with the recipient, and not all recipients want or can receive money in their bank account.

Online money transfer services

Online money transfer services, like WorldRemit, tend to provide a quicker, more cost-effective way of transferring money overseas. A good online money transfer service will only make you pay a small fee and will offer a fair exchange rate, with any costs shown upfront. They will also often offer a variety of pay-out options, like cash pick up, bank account transfer, mobile money or airtime top up.

Avoid low exchange rates when travelling

If you are planning on travelling outside of Ghana and require foreign currency, you can avoid the low exchange rates provided by banks, airports, or currency exchange bureaus by using a money transfer service. 

You can transfer money to your foreign bank account if you have one, or another popular option is to pick up cash from your money transfer service’s cash pickup agents while you’re abroad.