Selcom, Nala sign deal to facilitate international money transfers
Financial technology firm Nala’s chief executive officer Benjamin Fernandez (right) speaks during the signing ceremony of a partnership with Selcom for facilitating incoming remittances to Tanzania through banks and mobile wallets. Looking on is Selcom chief executive officer Samir Hirji. PHOTO | CITIZEN
What you need to know:
- With this partnership, Nala application users in the UK and US can now transfer money up to $5,000 or £5,000 a day, to several banks and mobile money wallets in Tanzania from the comfort of their homes, enhancing the inflow of diaspora capital into Tanzania
Dar es Salaam. Tanzanian residents can now receive remittances from the United Kingdom and the United States to their mobile money wallets and bank accounts instantly, thanks to partnership between two companies.
Payment service provider Selcom, signed the partnership agreement with a local financial technology (FinTech) firm Nala, to facilitate the incoming remittances into Tanzania.
With this partnership, Nala application users in the UK and US can now transfer money up to $5,000 or £5,000 a day, to several banks and mobile money wallets in Tanzania from the comfort of their homes, enhancing the inflow of diaspora capital into Tanzania.
The two companies are also working on the possibility to facilitate instant payment of bills directly from abroad, they said.
“We are happy to invest here at home to simplify transfer of inbound remittances,” said Nala founder and chief executive officer Benjamin Fernandez.
Deal Done: Nala’s chief executive officer Benjamin Fernandez (right) and Selcom's chief executive officer Samir Hirji exchange documents
“We would like to advise the government to prioritise technology so as to encourage more youth to develop more FinTechs such as ours,” said Mr Fernandez during a press briefing.
He said the company is now in seven countries targets to reach 12 countries by the end of the year.
The partnership with Selcom helps put Nala at the forefront of the ever-evolving remittance space both locally and globally.
This is owed in part to Selcom’s central role in the financial services ecosystem as an essential conduit in the industry, and in part to Nala’s product innovation.
“We would want to see people receiving direct payments to hospitals, in shopping centres in the future,” said Selcom chief executive officer Samir Hirji.
He added that the money transfer platforms were regulated by central bank both in Tanzania and in the countries of origin.
In 2021, Tanzania received $570 million in remittances from its diaspora, up from $400 million in 2020.
In 2022, the companies in partnership with other stakeholders, seek to grow inflows further for onward investment in sectors such as education, health and agriculture.
