Pipit Global international cash payment platform and pan-African payment company Cellulant (https://Cellulant.io/) extended their partnership agreement to eighteen countries in sub-Saharan Africa.
The partnership will see the companies providing B2B and B2C payment services to existing and emerging financial institutions, e-commerce merchants, billers and billing platforms, mobile money providers and e-wallets, providers of digital financial services and their customers.
Despite the Covid 19 pandemic, remittances to sub-Saharan Africa and intraregional remittances to SSA have remained resilient. According to World Bank figures, there was a slight 1.4% drop in flows to sub-Saharan Africa in 2020 – this figure excludes the exceptional case of Nigeria where economic factors beyond the pandemic have dramatically increased. affected remittances. And in 2021, remittances rebounded to near pre-pandemic levels with an annual increase of 6.2% for the region.
This resilience demonstrates the fundamental importance of diaspora remittances to sub-Saharan African countries, which exceed foreign direct investment and portfolio flows, and approach levels of official development assistance.
However, the cost of remittances to Africa and intra-African remittances remains a significant challenge, a burden on senders and recipients, and an obstacle to development.
Sub-Saharan Africa continues to have the highest average international remittance costs at 8.2%. The intraregional transfer costs are even higher, with, for example, the cost of a 200 dollars transfer between Tanzania and Uganda costing an exorbitant price of 23%.
Pipit and Cellulant’s partnership will see the development of ‘special purpose’ remittances. Rather than the traditional peer-to-peer remittance model, migrants will be able to perform bill payments and e-commerce transactions directly to vendors. This model ensures that bills are paid and removes the potential for “leakage” – where money handed over may not be used for its intended purpose. It also reduces the reception risk associated with collecting cash. And, in keeping with the goal of reducing the costs of remittances, the direct billing model charges significantly lower fees than traditional remittance prices, resulting in significant savings for senders and recipients of remittances. of funds.
Commenting on the partnership, Ollie Walsh, CEO of Pipit Global said, “Pipit Global was founded on the foundation of promoting collaboration in the world of payments. Making cash a central part of the digital economy, while maintaining this cash economy and offering the possibility to transition between the two, gives real parity and freedom, and ultimately creates the social impact that stimulates global development and equality.
“Our partnership with Cellulant will transform these development and equality goals and aspirations into tangible realities.
The expansion into new markets comes just 5 months after the two companies announced a partnership to enable remittances to Nigeria, Kenya, Uganda, Tanzania, Mali, Senegal and Ghana at rates lower.
“At Cellulant, we see digital payments as an important opportunity to create transformational change for businesses, households and economies in general,” said David Waithaka, Commercial Director of Cellulant for Enterprises.
Addressing the partnership, he added: “International and intraregional remittances are a growth engine for many economies in Africa, providing resilience to financial shocks and improving livelihoods. Allowing lower rates and generating remittances for specific purposes has a direct impact on people’s lives for us.
Technology and digital payments have been identified as a driver to reduce the transaction costs of remittances to less than 3% by 2030, as outlined in SDG 10, helping to reduce inequalities within and between country.
Distributed by APO Group on behalf of Cellulant.
About Pipit Global:
Pipit Global is an award-winning payments company with a presence in over 40 countries around the world, providing access to over one million payment points in those countries.
Pipit Global’s cash transactions platform gives financial institutions the ability to offer an alternative payment method to their existing payment ecosystem, allowing them to attract more customers to their offerings.
At the heart of Pipit Global’s mission is the social impact that financial access and inclusion creates.
Cellulant is a leading Pan-African payment company that offers alternative and locally relevant payment methods to global, regional and local merchants.
Cellulant provides a unique digital payment platform – named Tingg – to meet the complex payment needs of businesses. Tingg makes it easy to collect and make payments through multiple payment methods in different currencies, with the best customer experience for any business looking to digitize their payments.
Today, Cellulant is present in 18 African countries with a payment platform connecting thousands of businesses with 154 payment options in 35 countries. The platform powers payments to 220 million consumers on a single inclusive network enabling interoperability across Africa.