TerraPay has obtained approval from the South African Reserve Bank to launch cross-border money transfer services in South Africa. Terrapin is the world's first mobile payments switch.
"As per a report from FinMark trust, the bulk of remittance flows from South Africa are destined for Zimbabwe, Mozambique and Lesotho, with 85% of all migrants originating from these countries. Moreover, almost 70% of transfers to these countries are conducted informally, since the high cost of formal money transfers is a major barrier to accessing formal remittance channels. TerraPay is taking an aim to solve this problem of the migrants, by facilitating instant and cost-effective low-value money transfers to mobile wallets. We are now open for business in South Africa and are actively looking to build strategic partnerships to further expand our footprint in the Southern Africa region," said Ambar Sur, Founder & CEO at TerraPay.
This makes TerraPay the 5th company to be licensed as a category three Authorised Dealer in Foreign Exchange with limited authority, also known as ADLA 3, to conduct low-value international money transfers in South Africa.