This is what $2 billion gets you. The inbound remittance market was about $2 billion last year, and this is what you get when companies fight for a bigger piece of that pie.
Here, InnBucks is offering 1% cash back on any funds received from South Africa. That is a good great deal.
Yes, it might not seem like a good deal to the Zimbo who was subjected to 130% interest rates just last year. However, globally, this is a fantastic deal.
These remittance providers are angling to get a bigger portion of the $2 billion cake, and Mukuru and EcoCash, for example, have been offering free cash-outs for funds received from the diaspora.
The only catch is that it’s not really free cash-outs because the sender is charged when sending. It is like sending money to an unregistered EcoCash user domestically—the sender foots the sending and cash-out fee, and the recipient just cashes out whatever hit their wallet.
So, InnBucks is the only one offering something for free. I hope the competition responds.
As the competition heats up, watch as service improves, fees decline, and we finally get to see what a win-win looks like.
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