- Xoom, which is owned by PayPal, will now offer cash transfers to a broader range of African countries – including key markets such as Kenya, Ghana and Uganda.
- Senders will need to be based in a number of major Western nations in order to be eligible for the new service.
- The aim is for those who are “underbanked”, or who are not currently fully included in the prevailing financial systems on the continent, to have more money management options.
A cross-border payments service owned by the online financing giant PayPal has revealed a new expansion into the African money transfer market.
Clients of Xoom, which is owned by PayPal, will now be able to send money abroad to mobile wallets in even more African countries.
The compatible destination country list has been significantly expanded to include major African markets.
These include nations such as Ghana, Cameroon and Kenya.
Countries such as Uganda, Malawi and Rwanda are also represented.
It is understood that further countries will be added to this list by next year.
In terms of senders, meanwhile, clients in countries such as the UK and Canada are included.
Customers in the US and Europe will also be able to place the transactions.
Xoom is believed to be focusing in particular on those who are “underbanked” – or otherwise excluded from accessing traditional financial services.
In a statement, the head of Xoom said that a key consideration for the new service is driving down the cost of sending money abroad.
Julian King, who is vice president and general manager at the brand, said that cash transfers could be both cheaper and faster using the Xoom platform.
“Sending money to Africa through traditional channels has always been expensive. We wanted to help bring down the cost and speed up the process to boost financial inclusion,” he said.
He also claimed that Xoom was a world leader when it comes to getting money from account to account using mobile technology in the region.
“There is nowhere else in the world that moves more money on mobile phones than Sub-Saharan Africa,” he said.
Xoom does already have a presence in Africa.
It provides a range of cash-based, bank deposit and “mobile reload” services, and this service is available in just over 40 countries on the continent.
However, the newly expanded mobile wallet transfer service is expected to help more customers.
One study found that more than three-fifths of adults in Kenya, Ghana and Zimbabwe are in possession of accounts on mobile money platforms.
Customers who are looking to make a transfer using the Xoom platform are advised to download the app, which is available on Android and iOS.
It is possible to sign in using PayPal login details, though it is also the case that customers can create separate Xoom accounts.
Xoom is just one of many brands operating in the cross-border payments sphere – if you want to know more about the wide range of options available, please head to our reviews pages.
