Cash is the dominant form of transferring value in the remittance sector. Even though users can fund the transfer with bank transfers or credit cards, recipients will always get paid out in cash. Over in Ethiopia, the competition is heating up, as HomeSend plans to reduce cash usage for remittance services. Instead, they feel the mobile space may hold the solution to provide more security.
Regardless of how cash opposers want to look at things, financial inclusion cannot hinge on existing traditional payment options. Developing countries do not always have a high bank account penetration. Moreover, cash gives remittance recipients some level of financial freedom.
HomeSend Wants To Get Rid of Cash Remittances
HomeSend is trying to do things differently, as the company eyes the mobile ecosystem. Ethiopia is, similarly to other developing regions, seeing a significant growth in the number of mobile devices being used. Receiving funds in a mobile and digital format is not a viable option in the country right now, though.
That is why the company partnered with the Commercial Bank of Ethiopia to create a new remittance program. Their primary target is reducing cash usage in this sector, as it is an expensive