New app ‘PostalPay’ will slash the cost of sending money from Europe to Uganda

Rome/Copenhagen, 24 October 2022. The UN’s International Fund for Agricultural Development (IFAD), Inpay, a cross-border payments company, and its subsidiary company Eurogiro, a global postal cross-border payments network, have joined forces to make the cost of sending money through mobile channels from Europe to Uganda four times cheaper. Use of the new app generates significant savings for migrant workers and their families in rural areas and helps them to access additional finance.

Created by Inpay and Eurogiro in collaboration with PostBank Uganda and Posta Uganda, the new ‘PostalPay’ app will enable people located in the EU to send remittances in a cheaper, but also faster and safer way from their mobile phones.

“By using our cross-border payment technology, we are cutting the total costs of remittances to 2.5 per cent, helping migrant workers get a fairer service and helping us in our mission of democratizing payments in every corner of the world. We are incredibly grateful for the cooperation with IFAD, the EU and our partners in Uganda in this joint project. We look forward to working with local members of the Ugandan community in the Netherlands and Sweden to further support app uptake,” said Thomas Jul, CEO of Inpay and Eurogiro.

Money can either be instantly transferred to a PostBank bank account or received as a cash pick-up in multiple Posta Uganda and PostBank Uganda locations. “PostBank and Posta Uganda wide outreach through their branches makes picking up cash far more convenient for recipients in Uganda; we also believe that the trusted name of the Post and Bank will help foster market adoption,” added Jul.

IFAD’s EUR 369,000 grant will support the launch of ‘PostalPay’ in Sweden and the Netherlands, two European countries with an established Ugandan diaspora. The IFAD contribution is part of the PRIME Africa Programme, co-financed by the European Union with the additional support from the Government of Luxembourg. Inpay and Eurogiro are jointly contributing EUR 172,000 to co-finance this venture over the next 18 months.

“We are delighted to work with Inpay and Eurogiro to promote financial inclusion in marginal rural areas. Facilitating people's access to savings and credit will help them to participate in the rural economy and improve their livelihoods. Inpay technology provides low-cost and secure cross border payments and Eurogiro’s access to the global postal network makes it a valuable partner,” said Pedro de Vasconcelos, Manager of the Financing Facility for Remittances at IFAD.

Remittances, a key lifeline for Ugandan people

In 2021, the remittance flows to Uganda (US$1.08 billion) represented almost 3 per cent of national GDP. Uganda ranks in the top 10 of remittance recipient countries of sub-Saharan Africa. Currently, money can take days to be delivered and costs exceed 10 per cent of the amount sent, including the foreign exchange margin, adding unnecessary strain and cost on migrant workers and family members back home.

“These remittances are a lifeline for rural people. However, the cost of sending money to Uganda is still far above the SDG target 10.c of reducing the cost of migrants’ remittances to less than 3 per cent by 2030. Mobile channels offer a great opportunity to achieve this goal,” added De Vasconcelos.

The partnership builds upon a previous IFAD grant to Postbank Uganda (PBU) and Posta Uganda between 2017 and 2020. IFAD support helped extend financial services, including remittances, to rural and refugee communities, and supported the refurbishment of 30 post offices, opened new mobile branches, and procured mobile cash management vans in rural areas.

 

Notes to Editor:

About Inpay

Inpay offers low-cost, fast and secure multi-currency cross-border payments as an alternative to SWIFT wire transfers.

With Inpay’s cutting edge technology and a network covering 100+ countries, financial institutions, NGOs and businesses can make international payments as quickly and simply as a domestic bank transfer.

About Eurogiro

Established in 1993, Eurogiro has a long and respected history in connecting the world’s postal networks to exchange cross-border payments. Today it has a vast global reach connecting postal operators in more than 50 countries, helping them increase revenue streams, connect with other financial services providers, and support their positions at the heart of the community.

About IFAD

IFAD invests in rural people, empowering them to reduce poverty, increase food security, improve nutrition and strengthen resilience. Since 1978, we have provided US$23.2 billion in grants and low-interest loans to projects that have reached an estimated 518 million people. IFAD is an international financial institution and a United Nations specialized agency based in Rome – the United Nations food and agriculture hub.

A wide range of photographs of IFAD’s work in rural communities are available for download from its Image Bank.

IFAD’s PRIME programme

Co-financed by the European Union, the Platform for Remittances, Investments and Migrants’ Entrepreneurship in Africa (PRIME Africa), addresses development opportunities through innovations, partnerships, and scalable products that promote cheaper, faster, and safer remittance transfers.

By maximizing the impact of remittances for millions of families, PRIME Africa is fostering local economic opportunities in seven African countries (Ghana, Kenya, Morocco, Senegal, South Africa, The Gambia, and Uganda).

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Press release No.: IFAD/53/2022