New money remittance app Postal Pay launched with Post Bank
A new money remittance app called Postal Pay has been launched in Uganda and it will bring down the cost of sending money back home from Scandinavian countries like Sweden and Denmark by up to 4 times.
The app was created by Inpay and its global subsidiary Eurogiro in partnership with Post Bank Uganda with co-financing from the UN’s International Fund for Agricultural Development.
This app will make sending money from parts of Europe to Uganda much faster and more secure.
Recipients of money through this app will have options of either receiving the money in cash at any Post Bank branch or Posta Uganda location or directly in their bank accounts with Post Bank Uganda.
While commenting on this breakthrough, Thomas Jul the Inpay CEO said: “they are, as a company, honoured to be a part of the social change this app will deliver given it will ensure families of Ugandans in Europe who need this money which is sent to them for basic necessities shall receive a bigger chunk of what is sent in a shorter time span. In turn, this will boost inclusion in the financial system among these families.”
He added that since 2018 their cross-border payments technology has been a key driver of the company’s growth as they push further across the globe to increase access to their affordable remittance transfer app that reduces the cost for users of money transfer services by up to 2.5% per transaction.
In 2021, remittances to Uganda stood at about $1.1 billion USD representing bout 2.7% of the country’s GDP and keeping Uganda in the top 10 countries receiving remittances in Sub-Saharan Africa.
As a result these remittances have continued to offer a lifeline to many people in Uganda and sub Saharan Africa as a whole but their cost remains prohibitive according to Pedro De Vasconcelos Manager of IFAD’s Remittance Financing Facility.
“ It is the United Nation’s Sustainable Development Goal No. 10 (c) to reduce the cost of sending money back home for migrant workers to 2.5% by 2030 with the current cost of sending money to Uganda from overseas still way above average. Consequently, mobile channels are key to achieving this target and we are a proud partner with Eurogiro on this project given it far reaches in conjunction with postal services across the globe and Inpay whose technology will be a key driver for financial inclusion going forward.”
Post Bank Uganda CEO Julius Kakeeto noted that this partnership fits into the government-owned Bank’s financial inclusion agenda. “As a bank, we are very proud of being an implementing partner in this project and through our 4 contact centres, 60 smart ATMs and over 54 branches countrywide, we have the infrastructure to ensure this partnership is a success.”
James Arinaitwe the Posta Uganda MD acknowledged the importance of this joint effort in boosting financial inclusion across the country pledging to use the vast assets at Posta Uganda’s disposal to bring it to fruition.
This project is part of the PRIME Africa initiative co-financed by the European Union, IFAD and the government of Luxembourg among other partners.
