The index questioned customers about their aspirations for the future as well as how, when, and why they already use choices for international money transfers.
Five important marketplaces in Africa specifically were surveyed. South Africa, Kenya, Nigeria, Senegal, and Morocco are among them.
The statistics show that 62% of African consumers receive money transfers at least once a month or more, and 59% also send money across borders at that frequency.
According to the index, 78% of African recipients expect these remittances to expand over the next 12 months.
The Global Money Transfer Index revealed that 81 percent of consumers throughout the African continent are asking for more money from senders due to economic issues like the continent’s higher than average cost of living (compared to a global average of 79 percent).
It emphasized that 72% of African senders (and 71% overall) felt they are sending more than they did earlier for the same reason.
In spite of the widespread belief that remittances are determined by when salaries are received, consumers report that frequency and magnitude of remittances are most impacted by family needs.
Mohamed Touhami el Ouazzani, the president of Western Union in Africa, said: “The Index tells us that the cost-of-living squeeze across Africa means consumers are relying on money transfers as their daily lives have become more challenging,” said, “As consumers tell us that the remittances they receive will need to increase, it is imperative for money transfer providers to stay agile, and support consumers on their journey.”
Although providing for one’s family is listed as the primary reason for sending money, the Index asserted that consumers also believe transfers are important for future financial planning.
The second most common reason customers send money abroad is to pay for their children’s education. Consumers also listed preserving money for the future and defending domestic company interests as important factors.
According to the Western Union survey, consumers also showed that they keep a close check on how their home country’s currency is performing.
As a result, 67% of consumers in Africa (and 68% internationally) transfer more money when the value of the recipient nation’s currency declines in an effort to take advantage of the opportunity.
In the region, 65% of recipients concur that when currency values decline, they get paid more.
It was revealed that consumers are concerned about currency swings. When questioned about the future, 84% (or 79% internationally) of senders said they would want to see money transfer companies provide an extra service that would alert them when important currency values start to change so they may schedule transfers accordingly.
According to the survey, consumers’ choice of money transfer companies is influenced by receiving better service and more value. The top three criteria include getting the greatest exchange rate, making sure receivers pay little or no fees, and getting transactions done quickly.
The paper also stated that according to industry studies, there are currently more than five billion Internet users worldwide, and that number is rising at a rate of 1.9% per year. It was emphasized that developing economies experienced even higher growth rates.
In line with this, the Index showed that more than half of African customers (58%) choose digital-only options for money transfer.
“However, three billion people remain unconnected, so there is much more to do to achieve true digital equity. Of those who choose not to use digital transfer services at all, trust and customer experience are identified as top barriers—along with a preference to seek face-to-face interaction—among both senders and receivers.”
“When consumers look to the future, however, the picture changes. Almost half, 49 per cent of consumers in Africa (52 per cent, globally), want a choice in platforms when transferring or collecting. Bridging the digital with in-person experiences will significantly broaden the consumer financial ecosystem,” the report noted.
