MICROCAPITAL BRIEF: WorldRemit Launches Money Transfer Service in Albania

WorldRemit, a UK-based online money transfer service, recently announced that it has launched its mobile money transfer service in Albania. The service allows individuals in the United Kingdom to transfer funds to Vodafone subscribers in Albania via the mobile money service M-Pesa, owned by Safaricom Limited of Kenya. Safaricom’s largest shareholder is Vodafone Group, a UK-based telecommunications company. The new money transfer service enables Vodafone subscribers in Albania to instantly receive remittances on their mobile phones, which they may redeem at Vodafone M-Pesa agents. The service also allows them to deposit and withdraw funds, pay bills and send money to any mobile phone on the Vodafone network in the country.

Alix Murphy, a senior mobile analyst at WorldRemit, said that “the majority of adults in Albania do not have bank accounts, but mobile phones are widespread. M-Pesa is helping to drive financial inclusion in Albania by providing a secure way for people to send, store and receive money using just their phones”[1].

Financial information on WorldRemit is not available. In Albania, M-Pesa was launched in 2015. M-Pesa also operates in Democratic Republic of Congo, Egypt, Ghana, India, Kenya, Lesotho, Mozambique, Romania and Tanzania.

By Imke Herholdt, Research Associate

About WorldRemit
WorldRemit was incorporated in 2009 as an online money transfer service. Based in the United Kingdom (UK), it enables customers in 50 countries to send money via mobile phones, tablets or computers to individuals in approximately 120 countries in Europe, Asia, Africa, Australia and the Americas using a variety of payment options including debit cards and credit cards. The service offers several pay-out options including cash pickup, bank deposits, mobile wallets, door-to-door delivery and airtime top-up. The company currently has 150 employees working in its headquarters in London and regional offices in United States, Canada, Japan, Australia and New Zealand. The firm’s financial information is not available.

About M-Pesa
M-Pesa is a mobile money service that was launched in Kenya in 2007 and has since been replicated in a number of countries. Launched by Safaricom Limited, a Kenya-based cellphone service provider, M-Pesa was developed by Vodafone Group Private Limited Corporation, a British mobile network operator. The “M” stands for “mobile,” and “pesa” means “cash” in Swahili. Currently, M-Pesa operates in Albania, Democratic Republic of Congo, Egypt, Ghana, India, Kenya, Lesotho, Mozambique, Romania and Tanzania.

About Safaricom
Safaricom is a Kenya-based telecommunications company that was established in April 1997 as a private limited liability company and was converted into a public company with limited liability in May 2002. Safaricom is 35-percent owned by the government of Kenya and 40-percent owned by the UK-based telecommunications company Vodafone. For the year ended March 31, 2016, Safaricom reported total assets of KES 159 million (approximately USD 1.6 million), operating income of KES 55 million (approximately USD 1 million), return on assets of 24 percent and return on equity of 34 percent.

Sources and Additional Resources
[1] PR Web: WorldRemit launches instant overseas money transfers to M-Pesa in Albania
[2] MicroCapital Universe Profile: WorldRemit
[3] WorldRemit
[4] MicroCapital Universe Profile: M-Pesa
[5] M-Pesa
[6] Safaricom Limited
[7] FT.com Markets: Safaricom Limited
[8] MicroCapital Universe Profile: Safaricom Limited

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