Mukuru’s strength in the remittance and cross-border payments space has led to the launch of a new product line – Enterprise Payments.
Mukuru is partnering with some of the world’s leading humanitarian aid organisations, using its reach and capabilities to deliver a seamless process that guarantees on-time payments for some of the world’s most vulnerable recipients of humanitarian aid.
Move to aid cash payments
The new product line is the result of a trifecta of change in the humanitarian and money transfer sectors.
1. An upswing in the volume of aid distributed across the globe that is putting the humanitarian system under enormous strain. (An estimated one billion people in countries affected by long-term humanitarian crises need around $30 billion in aid each year to survive.)
2. Aid organisations are urgently looking for new ways to protect the lives and dignity of affected individuals while ensuring aid is spent efficiently. The result is a switch where possible from supporting crisis-affected people with physical commodities, to cash payments.
3. Changes in technology and access to financial services are presenting new ways for humanitarian support to reach people in need, whether as an envelope of cash, a money card, or electronic money transfer to a mobile phone.
Mukuru—Aid Agency Synergy
Today, the bulk of humanitarian work is not a response to sudden disaster. Countries caught up in protracted crises of five years or more, have gone from 13 to 31 in the last 15 years. In these circumstances, aid in cash that allows recipients to buy food, pay rent and buy what they need locally, is far more effective at helping people survive and rebuild their lives than consignments of food, water, shelter and clothes. An increasing number of agencies are now building cash payments into their emergency response planning.
In 2020, a number of United Nations (UN) agencies and organisations including World Food Programme, Unicef, Finmark Trust and Action Contre La Faim began to work with Mukuru – an Africa-based Fintech company that for almost two decades has enabled migrant workers to send money home to their families via a formal remittance system that uses dynamic technology and an extensive Africa footprint to deliver safe and easy-to-use products and services.
Traditionally, migrant workers were forced to trust the goodwill of strangers, paying middle men and taxi drivers to get desperately-needed money home to their families. Mukuru presents an alternative, safer way that enables a sender to place and pay for a cash remittance order which their recipient can access at a Mukuru branch, retail partner, or payout booth in peri-urban and rural areas.
The common thread of supporting the financial wellbeing of some of the world’s most vulnerable people created a natural synergy between the money transfer company and partner humanitarian aid organisations.
Mike Scott, Mukuru Group Head of Commercial, says, “On the one hand, Mukuru is constantly innovating to stay ahead of real-time social, regulatory and legislative changes in more than twenty recipient countries.
This means building flexibility and responsiveness into every business process. On the other hand, end-to-end accountability and full auditability is paramount to the long-term success of the products and services we create for our customers, whether in the business-to-customer or business-to-business space.”
Maximising humanitarian impact with a system of cash transfers
The expansion into Enterprise Payments is a natural progression for Mukuru. They are licenced across multiple territories, have vast experience in instant cash availability (even in poor cash liquidity environments), and are passionate about enabling the journey towards digitisation for their customers.
Scott says, “Our cash transfer systems offer our aid partners convenient online disbursement of cash aid, with built-in operational efficiencies, as well as security and risk prevention; this includes fraud detection, anti-money laundering and authentication tools.
Our ability to provide a fully-auditable payments infrastructure that allows organisations to deliver large numbers of cash payments quickly and reliably to vulnerable people in under-served communities is what caught the eye of our humanitarian aid organisation partners.”
Ariane Luff, Zimbabwe Country Manager for Action Contre La Faim (Action Against Hunger), says, “It was Mukuru’s practical approach to money transfers and their scalability that made them an attractive business partner.
“They are able to leverage their independent cash supply chain to ensure regular payouts and have proven to be highly responsive to the unique issues faced by aid agencies. Having easy access to senior managers is crucial for aid organisations that need quick answers to changing situations, and Mukuru has been willing to listen and learn, whether this is making quick adjustments to longer queues by bringing in additional payout booths, or extended payout hours for aid recipients.”
Mukuru, an African FinTech company founded in 2004, is building a cross-border payments platform across the continent.
Mukuru enables safe, affordable, reliable financial services to underserved communities. With over 40 million cross-border transactions over the last decade, we are one of Africa’s largest remittances-led FinTech’s.
Our remittance service offers customers the opportunity to send money to their relatives or friends in over 20 countries across Africa and Asia.
Additionally, we offer critical customer services such as Funeral Cover, The Mukuru Money Card and payment solutions for businesses in emerging markets.
Mukuru has been listed as one of the leading 150 cross-border companies globally in the 2020 FXC intelligence Incumbents vs Challengers in Cross-Border Payments
The company is 17 years old and cannot be classified as a start-up, although it continues to harness and foster the ‘entrepreneurially orange’ energy on which it was founded. South African, Andy Jury is the CEO.
Further information can be found at https://www.mukuru.com/the-mukuru-group/