Flutterwave launched a new payment service, SEND which will disrupt the remittance market in Africa.
The potential of SEND is in its ability to allow users send or transfer funds to their loved ones, familiesor business associates within minutes from various countries around the world to Africa and at an affordable rate.
Many people outside the continent are discouraged from sending remittances into Nigeria and African countries as a whole due to the long transaction time and high transaction cost.
The foreign exchange rate is also discouraging , coupled with the fact that the purchasing power of the money sent is low, which means the money sent would be chasing fewer goods or services.
According to Remittance Prices Worldwide, the average total cost for sending money from the United States to Nigeria is $7.27 through various RSPs while SEND charges 1 unit on every currency regardless of the amount and location.
SEND has set out to solve one of the numerous remittance issues, one of which is the issue of high transaction costs by charging lower transfer fees compared to other Remittance Service Providers (RSPs) such as Moneygram, Western Union, etc
For example, if you are sending money from The United States of America to Nigeria, SEND charges at their 1 dollar rate which is #592.11, if you are sending to Nigeria from Europe they charge 1 Euro which is #675, this applies to other currencies.
The ease in transfer is one of the solutions RSPs like SEND is promoting. This is in the sense that when a person in the United States sends money to someone in Nigeria, the recipient receives the money in his/her local currency immediately, Tejumade Adeyinka, an expert in remittance services said
Thereby solving the problems associated with going to the bank, long transaction time, and having to still convert it to his/her local currency.
Also, SEND enables the beneficiary to receive cash immediately when the sender makes use of the e-naira app from other countries to Africa, however, it takes one to two business days when the sender transfers using his bank account.
The remittances sent are to help poorer recipients in Nigeria meet basic needs, fund cash and non-cash investments, finance education, foster new businesses, service debt, and essentially, drive economic growth.