Is Online Money Transfer Possible In African Countries Like Nigeria?

Sending money to Nigeria and other African countries is not a difficult task anymore.

Africa is the world’s second-largest and second-most-populous continent. It comprises many countries like Egypt, Nigeria, etc. Although Africa is rich in natural resources like oil, minerals, etc. but still it is one of the poorest regions of the world. There is much reason for its poverty which mainly includes lack of access to foreign capital. Poverty, illiteracy, malnutrition, and inadequate water supply and sanitation, as well as poor health, affect a large proportion of the people who reside in the African continent. Despite a wide range of natural resources, the continent is the least wealthy per capita, in large part.

In August 2008, the World Bank announced revised global poverty estimates based on a new international poverty line of $1.25 per day (versus the previous measure of $1.00). It was found that 81% of the Sub-Saharan Africa population was living on less than $2.50 (PPP) per day in 2005, compared with 86% for India.

Can You Send Money Online through Mobile Apps?

Due to poverty, this region lacks a proper banking system. Similarly, because of illiteracy most, people do not have their bank accounts (unbanked people). Hence it is not feasible for them to use banks to transfer their money.

Hence fast, safe and reliable methods are needed to transfer money. Fortunately, advanced technology has reduced this trouble and has introduced online money transfer through mobile. One can safely send money to Nigeria online from any country. All that is needed for this method is a smartphone and access to the internet. People can send their money anytime, in any part of the world just by few clicks.

What Is The Economy Before Online Money Transfer Service?

It is evident from facts that during the year 1975 to 2004 the remittances in Africa were significantly less or somewhat constant. But there is a rise in the continent’s remittances after the year 2004. One of the key reasons for this is people becoming aware of the advanced methods of online money transfer. For the money transfer to Nigeria, one of these methods is online money transfer through mobiles. An increase in remittances not only increases the lifestyle of citizens but also fuels the country’s economy to a great extent.

How Is The Economy Efficient After Increased Remittances?

Africa has seen a massive shift in its remittance figures and patterns over the past decade. Remittances to Africa in 2010 were recorded at USD 40 billion by the World Bank. In 2018, money transfers to Africa were around USD 46 billion in sub-Saharan Africa and USD 62 billion in the Middle East and North Africa combined.

Technological advances and new product developments can exert positive influences on economic growth. Increases in demand from foreign markets can lead to higher export sales. In any of these cases, the influx of income, if big enough, causes an increase in the economic growth rate.

What Are Some Concepts of Old Money Transfer Methods?

Previously people used to send their money by different methods. None of those methods were fast, safe, and reliable. Some of the methods are discussed below:

·       Fly-by-night method:

People used to hire airlines to transfer their money to their loved ones. But this system was quite expensive and could not be afforded by everyone. Also, there used to be solid chances that money gets delivered to the wrong person.

·       Money orders:

It was a slow and less efficient way of transferring money which was used to transfer money by postal cheques.

How to Evaluate the Benefits of Online Money Transfer?

The following are the benefits of online money transfer through mobile:

Convenience:

This is a very convenient method of money transfer. Because all that is needed for a sender and receiver is a cell phone and internet connection.

Cheap:

As compared to the old methods of money transfer, this method is very cheap because there is a fixed percentage that is to be deducted from the amount being sent.

Secure:

All money transfer companies provide a 100 % guarantee of transferring money to the desired person because it is a matter of their reputation. The more secure a company is, the faster it grows.

Conclusion:

People Living out of Africa often have to spend their money within Africa. For example, there is a larger number of Africans working outside Africa. These people send money to their loved ones.