Zain and Western Union are to work together to deliver mobile money transfer services in countries in Africa and the Middle East through Zain’s new Zap platform. The Zap service provides Zain customers access to a full range of transactional services from their mobile phones. Customers can interact with select bank accounts, top-up or transfer airtime, and move money to businesses, friends and family. The service allows customers to pay bills such as electricity, and can even be used to settle grocery bills in the supermarket.
Zap has been operational in Kenya, Tanzania, and Uganda for several months, making mobile banking services available to more than 100 million people in East Africa. Zain has announced plans to introduce Zap in 22 markets.
Once the service is launched with Zain, consumers will be able to send cash money transfers from participating Western Union locations around the globe. Zap customers who are enrolled in the service in select countries will be able to choose whether they want to receive their money in cash at a Western Union Agent location or in accounts tied to their mobile phones (their “mobile wallets”).
Money-transfer receivers who receive funds in their mobile wallets will be able to pay bills, buy airtime, or cash out through the Zap service at more than 12,000 Zap agent locations in East Africa.
The service will be introduced in select countries when regulatory approval has been secured.
“Zain’s initiative has the potential to provide millions of people with access to convenient financial services for the first time,” said Gail Galuppo, Executive Vice President and Chief Marketing Officer, Western Union. “The ability to move money with a mobile phone is changing the landscape of financial services. We look forward to connecting Western Union’s global network with the Zap platform to extend services throughout Africa.”
According to industry group Aite, people living outside their country of origin sent nearly US$400 billion in remittances around the globe in 2008. Sub-Saharan Africa alone received an estimated US$10.8 billion in remittances in 2007. Major recipients of remittances include Nigeria, Kenya, Sudan, and Uganda.
Announcing the launch, Dr. Saad Al Barrak, Zain Group CEO, said, “This service will enable the millions of people who are abroad to send money home swiftly to their friends and families not only in the cities but also directly to the villages across these countries.
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