MICROCAPITAL BRIEF: WorldRemit Launches Direct Worldwide Money Transfer Service through Telesom’s Zaad Service

WorldRemit Limited, a UK-based online money transfer service that enables customers to send remittances to family and friends in approximately 100 receiving countries, reportedly has partnered with Somaliland-based communications company Telesom’s Zaad, a mobile banking service that allows customers to use their mobile phones for money transfers and purchases, to launch a mobile money transfer program. The new partnership will enable WorldRemit customers in 30 countries in the Americas, Europe and East Asia to send amounts from USD 1 to USD 2,500 to users of the Zaad service in Somaliland [1]. Suad Yusuf Odowa, Somaliland’s country manager for WorldRemit, remarked that one of the major reasons for the company to undertake the venture in Somaliland was the “vast need” for mobile money transfer services in rural communities where individuals waste time and funds travelling to major towns to collect remittances [1]. The most recent World Bank Global Financial Inclusion Database (Findex) identified that  26% of the population of Somaliland uses mobile phones to pay bills- currently one of the highest rates in the world [1].

The services of WorldRemit include instant cash pickup, bank deposits, transfers to mobile wallets, door-to-door delivery and international airtime top-up [2].

Somaliland is presently an unrecognized state within the country of Somalia, reportedly making it difficult for international aid donors to provide aid to the sovereign state. As a result, the government allegedly relies greatly on tax receipts and remittances from the Somali diaspora to contribute to Somaliland’s economy [3].

WorldRemit Ltd. was incorporated in 2009 and reported USD 1.4 million in assets in December, 2011. Telesom was established in 2001 as a mobile service provider that offers a variety of communications services and currently services 90% of mobile subscribers in Somaliland. Telesom financial information has not been reported.

By Anesa Kratovac, Research Associate

About WorldRemit Limited

WorldRemit Ltd. was incorporated in 2009 as an online money transfer service that enables customers to send remittances to individuals in more than 100 receiving countries using a variety of payment options including debit cards, credit cards and innovative local payment methods. The service offers wide range of pay-out options including instant cash pickup, bank deposits, transfers to mobile wallets, door-to-door delivery and international airtime top-up. The company reported USD 1.4 million in assets in December, 2011.

About Telesom

Telescom was established in 2001 as a major mobile service provider in Somaliland. Its mission is to provide quality and affordable services to customers through advanced technology, wide coverage, and establishment of community-work projects. The objectives of the company are to interconnect all major cities and towns of Somaliland with its services. The financial information for the company is not reported.

Additional Sources and Resources:

[1] Somaliland Sun Website Article, July 24, 2013, “Somaliland: World Remit Launches Direct Worldwide Money Transfer through Zaad Service,” http://somalilandsun.com/index.php/economic/3396-somaliland-world-remit-launches-direct-worldwide-money-transfer-through-zaad-service-

[2] WorldRemit Official Website, https://www.worldremit.com/en/home

[3] Development Progress Website Story, http://www.developmentprogress.org/progress-stories/somaliland-progress-governance-case-blending-old-and-new

MicroCapital.org Article, August 2, 2013, “MICROCAPITAL BRIEF: CardPlanet Solutions of Kenya Inaugurates “Pesacard” to Enable Parents to Send Mobile Money to School Children,” https://www.microcapital.org/microcapital-brief-cardplanet-solutions-of-kenya-inaugurates-pesacard-to-enable-parents-to-send-mobile-money-to-school-children/

MicroCapital.org Article, July 30, 2013, “MICROCAPITAL BRIEF: Ecobank, Lonestar Cell MTN Launch “Mobile Money School Fees Payment Service” in Liberia,” https://www.microcapital.org/microcapital-brief-ecobank-lonestar-cell-mtn-launch-mobile-money-school-fees-payment-service-in-liberia/

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