Will Nigeria’s support for digital remittance impact money transfer from the US?
The financial landscape around the world is changing fast. Millions of people who once only accessed money via traditional methods, now have access to funds digitally through mobile wallets and other such apps.
The global pandemic has forced people to think differently about money transfer, both sending and receiving. Luckily, for some, this is now getting back to normal, but for a portion of customers these changes are here to stay.
Money transfer to Nigeria
Nigeria is one country that is changing fast.The global pandemic has started to shift people’s mindsets more towards smartphone ownership and digital money. And, its central bank (CBN) appears keen to support this move for anyone planning to send money to Nigeria.
This move towards digitalization affects customers who transfer money internationally in a few ways – including the initial benefit of the first transaction being fee-free. This comes into effect when you transfer money via the website or the Android or iOS mobile app. This move towards digitalization affects customers who transfer money internationally in a few ways.
What is driving the changes in money transfer to Nigeria?
So, the change is global, but what is changing in Nigeria specifically, and what does it mean for people who want to send money to Nigeria?
In short: the Nigerian government has agreed to grant more licenses for “Payment Service Banks”.
Payment Service Banks (PSBs), also known as Payment Service Providers (or simply Payment Banks) are simpler versions of banks. PSBs are focused on financial inclusion and aim to ensure that their services can be accessed by those that find it more difficult, or are unable, to open a traditional bank account.
PSBs offer a limited range of services, like current and savings accounts with debit and (or) prepaid cards and, importantly, they provide payment and remittance services.
This is great news for people who send money internationally, and for those that receive it.
PSB licenses in Nigeria
The CBN has granted three licenses so far, to: Hope PSB, Money Master PSB and 9PSB ( Premium Times).
The CBN has set a minimum capital base of N5bn for businesses that want to apply for a PSB license.
Existing businesses, such as telecom firms, banking agents, retail chains and postal services, are able to apply for a license, but in order to do so they must set up a separate company.
So, what is Small World doing to help? And how might this impact your money transfer choices?
Small World and Paga offer mobile wallet as a money transfer option
Small World is a leader in digital money transfer, and we are making sure we support communities in Nigeria to access their money.
This partnership allows Small World to reach those people who struggle to access traditional banks.
How does Paga work? Paga is an example of a mobile wallet, like Daviplata in Colombia and EasyPaisa in Pakistan. Mobile wallets are just like the physical wallet you keep in your pocket. Because they are digital, they make it quick and easy to send money home.
They are also a completely safe way to send and receive money as they are protected by the latest encryption technology.
Sending money to a loved one using Paga couldn’t be easier: your recipient only needs a Smartphone and a Paga account. These two things mean your beneficiary can receive any remittance you send.
Sending money to a mobile wallet
There are a number of ways you can send money to Nigeria for it to be received via Paga:
- through a Small World agent
- by an online money transfer
- through the Small World app for to be received
Worth remembering that, your first transaction is fee-free when you choose to send money through the website or the Android or iOS mobile app.
Why choose a mobile wallet like Paga?
There are several advantages of sending and receiving money through a mobile wallet:
- Tried and tested - millions of Nigerians already trust Paga with their money
- Paga’s encrypted software complies with the highest global security standards
- Your money appears in their mobile wallet instantly and they can then use it digitally or withdraw it at an ATM
- Mobile wallets are much safer than a regular wallet, even if your recipient’s phone is stolen, their money is safe as it is protected by PINs and passwords
- A mobile wallet account is entirely separate to a bank account, so your recipient can be unbanked
- Using Paga means people in Nigeria can access their remittances without needing to have face-to-face contact
So why not join the revolution and send money to Nigeria with Small World and Paga?
The most popular ways to send money to Nigeria:
Anywhere pick up
Our main partners in Nigeria are Polaris Bank, Fidelity, First Bank, GT Bank, access, UBA.