New player enters the domestic remittance market offering free transfers then 3% from October

The first thought that enters your mind is, ‘Do we need yet another domestic remittance service provider?’ Then you think, ‘Well, we could always do with lower transfer charges and players that reach more locations.’ Only then do you welcome Wiremit Money Transfer into the mix.

Wiremit is entering a crowded market, and one for a small population, I might add, but they seem to understand this reality. Here is what they have to say,

Wiremit Money Transfer is the new player on the domestic remittance market. And we are aware
that the landscape is very competitive but we think that the more players there are in any market the
better it is for the transacting public.

Additionally, we believe that innovation can only come through participating in the market and
understanding what the ordinary Zimbabwean needs from a money transfer agent and wider
financial services.

We are also conscious that the cost of sending money around Zimbabwe is on the high end, and this
is why we are offering a double promotion. The first aspect of this promotion is that you can send
your first US$100 without any fees. Your money will arrive as is.

The last aspect of our Double Promotion is that after you send your first US$100, any amount after
that will be at 3% and this is significantly lower than some of the operators in the space.
You can find Wiremit Money Transfer at one of the following branches:

• Harare – Joina City (Car Jason Mayo and Julius Nyerere) U13 on the Upper Ground Floor
• Harare – Tatu Capital, 55 Kelvin Road North Graniteside
• Mutare – Shop E4, 58 Molus Mall 2nd Street
• Beitbridge – Shop Number 5 Elliot Shopping Mall 1435 Industrial Road
• Gweru – Stand No 2233, Shop 2, Ground Floor Msopero Building
• Kwekwe – Beverly House, Stand 2759 Robert Mugabe Way
• Bindura – Tatu Capital, North East Centre, Glow Petroleum
• Bulawayo – Room 102, 1st Floor York House Car Herbert Chitepo and 8th Avenue
  

Our double promotional offer is running until the end of September 2023, and we hope to see you
all soon at one of our branches nationwide.

Will this succeed?

That’s not quite a long list of branches there. We have looked at the branch networks of all entrants into the domestic remittance market and Wiremit has one of the weaker ones. They will add more branches in time, no doubt, but it’s a bit bare to start, hardly worth a second look.

When it comes to fees, Wiremit is more competitive. They have two promotions currently available: the first allows for free transfers up to $100 and lasts until the end of September, and the second is that charges are only 3% thereafter.

Yeah, I think we can consider the 3% one a promotion because that’s lower than what juggernauts like EcoCash (4% incl withdrawal) and InnBucks (5%) are charging. Wiremit says the 3% is all there is, that’s transfer plus withdrawal fees.

That means if you use Wiremit instead of InnBucks to send money, you could save $2 for every $100 sent. It’s worth considering if the limited branch list is not an issue for both you and your recipient. Why miss out on potential savings?

Aside from the challenge of expanding its branch network, Wiremit may also struggle to attract customers who are tired of signing up for new services. If someone doesn’t regularly send money, it could be difficult to convince them to register for yet another service just to save $2.

However, the registration process for Wiremit is similar to Mojo Mula’s. You can complete it while making your first transfer. It’s a quick process that takes less than a minute to fill in your limited KYC details. Currently, Wiremit does not have full wallets and therefore does not accept deposits. So, the signup hurdle is not really a hurdle.

They don’t have USSD yet and that could be a problem. However, they say they are working on it and it should be available by mid-August at the latest.

That’s it. If you send money regularly within Zimbabwe then you might want to look at what Wiremit is offering. Those $2 per $100 savings quickly add up. You just visit any of the locations listed above with your ID in hand and you’ll be good to go.

Also read:

Ecocash is the latest to drop USD transaction charges from 7% to 5% after tax

InnBucks announces fees for 2023. Charges dropped from 5% to 3%!