Money Transfer Provider Azimo Reports Dramatic Growth
Top international money transfer firm Azimo (read our review) just turned five and is growing like a weed. It recently reported triple-digit gains in total revenue, the number of transactions processed, and the gross volume of transactions. For example, compared to this time last year, Azimo sent 236% more money to Poland. Remittances to Moldova and Nigeria were also up by over 200%.
Azimo Founder and CEO (read our interview) credits widespread consumer acceptance of financial technology, especially mobile money transfers, with this dramatic growth. “People have been able to move money across borders for hundreds of years - but new technology is transforming financial services, and online money transfer is booming,” stated Kent. To help execute Azimo’s plans for further expansion, the company hired Richard Ambrose as its new chief operating officer. The former chief of staff at PayPal EMEA, Ambrose possesses in-depth experience in the online money transfer industry.
Transferwise Restores Service to Nigeria as Naira Regains Footing
In April of 2016, Transferwise (read our review) suspended money transfers to Nigeria due to lack of clarity on exchange rates. With a population of 180 million, Africa’s largest economy was in the midst of a recession—its first in a quarter century—reeling from consistent dollar shortages caused by low oil prices. The multiple exchange rates for Nigeria’s currency, the naira, varied widely, and consequently Transferwise could not offer its customers the transparency it strives for.
In recent months, however, the Nigerian economy has improved and the naira’s exchange rates have converged, so Transferwise customers can once again send money online to Nigeria. According to Kristo Kaarmann, Transferwise’s CEO and co-founder, “We have monitored the market closely over the past year and recent efforts by the Central Bank of Nigeria have strengthened our confidence in the naira.” Transferwise will use the central bank’s exchange rate for International Money Transfer Operators (IMTO), which offers clarity and reliability.
Given that remittances to Nigeria total about $20 billion USD per year and make up the second largest source of the country’s foreign income (after oil revenues), this money transfer corridor is essential to Transferwise’s expansion plans.
Gates Foundation and Fintechs Bring Mobile Payments to the Unbanked
With the help of a handful of fintechs, including San Francisco blockchain startup Ripple and Iowa-based Dwolla, the Bill and Melinda Gates Foundation aims to bring mobile money transfer capabilities to millions of unbanked people in developing nations. The fintechs put their heads together to create free, open-source software called Mojaloop that helps mobile payment services and foreign financial institutions work together. “Moja” means “one” in Swahili and reflects the uniformity and interconnectedness that the new banking code aims to achieve. "The next wave of innovation that this [Mojaloop] unlocks is that now you can connect not only the mobile money systems but also the traditional banks," said Kosta Peric, the foundation's deputy director of Financial Services for the Poor.
The World Bank estimates that approximately 2 billion people around the world can’t obtain bank accounts due to remote locations and lack of access to technology. With this latest initative, the Gates Foundation plans to chip away at this number.
