Pan-African Remittance Firm Mukuru Launches Banking Service In South Africa

Pan-African remittance firm Mukuru has launched a new banking account and card in South Africa as it expands its services beyond cross-border money transfers into everyday financial transactions.

The Mukuru Account & Card, offered in partnership with licensed sponsor bank Bank Zero and enabled by Paymentology and Mastercard, allows customers to receive salaries, make local payments, shop and send money internationally through a single account.

Customers can make electronic fund transfers and real-time payments to any bank in South Africa, receive incoming salary and other EFT payments, spend up to R150,000 a month, make purchases online and in stores, and withdraw cash at reduced ATM fees. The account also provides access to credit facilities and discounts on money transfers across Africa.

The launch builds on Mukuru’s existing prepaid card business, with about 500,000 customers currently holding its prepaid cards in South Africa. The company said customers are already moving to the new account, which offers additional functionality and lower fees.

Andy Jury, Mukuru’s chief executive, said the new service forms part of the company’s remittance-led neobank strategy. Mukuru, which has more than 17 million customers, has built its business around cross-border transfers but has increasingly added financial products around its core remittance offering.

The company is also targeting customers who move between cash and digital payments. Its distribution network covers about 320,000 physical locations offering Mukuru services or cash-in and cash-out facilities, alongside its digital channels.

"The strength of the Account & Card is that it bridges that gap and can grow with the customer," said Juan Seco, Mukuru’s chief growth officer, referring to the connection between cash-based transactions and digital financial services.

The account is available through Mukuru branches, participating partner locations, customer service offices and field ambassadors across South Africa. Customers can also register through the Mukuru app and WhatsApp.

The South African launch follows Mukuru’s recent introduction of its Wallet & Card in Botswana. The company also holds e-money licences in Botswana, Zambia and Malawi, as well as a deposit-taking microfinance licence in Zimbabwe.

Source: FSX Business News