Byline: Imane Charioui, Director of Francophone Africa and the Middle East, WorldRemit
YAOUNDÉ, Cameroon, January 18, 2023 /African Media Agency/ – Over the past decade, the cross-border remittance market has undergone tremendous changes, moving from traditional offerings to much faster, easier and safer methods of payment , thanks to digital disruptors.
With the rise of globalization and migration, followed by the demand for cross-border payment solutions, fintech organizations have changed the landscape by developing digitally enabled solutions for their consumers.
The change is positively impacting the financial industry and improving the lives of millions of people in sub-Saharan Africa. In the first half of 2022, remittance inflows into Cameroon, through WorldRemit, totaled £75 million, driven by the rapid need for digital remittances around the world following the COVID-19 pandemic.
In 2023, the remittance industry is projected to continue to evolve with innovation in the fintech sector at a rapid pace. This will take place in the midst of an increasingly challenging economic environment with a continued rise in the cost of living and inflation around the world.
With these factors in mind, remittance expert Imane Charioui, Director of Francophone Africa and the Middle East at WorldRemit, shares some thoughts on what to expect in Cameroon’s remittance market in 2023.
Cashless transactions and mobile money
Mobile technology is a global game changer for remittances because it eliminates the need for expensive physical branches. In Cameroon, the digital infrastructure has evolved considerably and mobile devices act as a key enabler and the main channel for connectivity. For example, the mobile population coverage rate for 2G is 96%, 85% for 3G and 53% for 4G.
In 2020, the Bank of Central African States (BEAC) revealed that Cameroon alone had 64.8% of all active accounts in the Central African Economic and Monetary Community (CEMAC). This was almost three times the number of Congolese mobile money accounts (7.1 million) and almost ten times the number of Gabonese accounts (2.7 million).
In addition, Cameroon also confirmed its leadership over the CEMAC electronic payment market by registering the highest number of transactions with 73.13%.
Increased public engagement with technology and the adoption of digital tools are positive steps for Cameroon’s growing digital economy and the future of its fintech ecosystem in 2023.
Greater use of Money Transfer Operators (MTO)
As online money transfer tools become more and more part of people’s lifestyles, online money transfers will continue to grow steadily in 2023. However, the likelihood of further international developments will persist. adverse events in 2023 is high and the pace of remittance flows to sub-Saharan Africa may slow to 3.9% from 2021’s advance of 16.4%.
This is because the economic outlook is weakening and real wages are expected to contract in the United States and Europe, where higher inflation is expected to hit the areas where Cameroonian immigrants reside. However, the affordability of food and deteriorating real incomes in African states still indicate the need for financial support from the diaspora.
As such, MTOs like WorldRemit will continue to provide essential services to many Cameroonian families in need. ”At WorldRemit, 90 percent of money transferred to Cameroon is sent in a matter of minutes. This eliminates the long wait times and complexities of traditional remittance processes. Recipients secure their money through WorldRemit’s suite of options designed for different services such as trusted banks, mobile money and cash pickup locations,” Imane said.
MTOs will continue to help communities in different countries connect with their loved ones through financial support. Remittances are the backbone of the economies of many developing nations, and MTOs will continue to play their part in increasing the flow of remittances.
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Distributed by African Media Agency (AMA) for WorldRemit.
About WorldRemit
We are a leading global payments company and, together with Sendwave, we are part of Zepz, a group that powers two global payments brands. We disrupted an industry previously dominated by offline legacy players by making international money transfers online safer, faster and cheaper. We currently ship from 50 countries to recipients in 130 countries, operate in more than 5,000 money transfer corridors worldwide, and employ more than 1,200 people worldwide.
When it comes to shipping, WorldRemit is 100% digital (cashless), which increases convenience and improves security. For those receiving money, the company offers a wide range of options including bank deposit, cash out, mobile airtime recharge and mobile money.
Backed by Accel, TCV and Leapfrog, WorldRemit is headquartered in London, UK, with regional offices around the world.
www.worldremit.com
Media contact
WorldRemit Press Office
media@worldremit.com
The publication Factors that will continue to shape the Cameroon remittance market in 2023 appeared first on African Media Agency.
Source: African Media Agency (AMA)
