Zeepay: Making Money Transfers Cheaper and Simpler
- yanabijoor
- 13 hours ago
- 3 min read
The Problem of Financial Exclusion
Zeepay is a Fintech startup based in Ghana that solves a significant social and economic challenge: the high cost and difficulty of sending money home from abroad.
Families in Ghana who receive money from family or friends abroad typically face several barriers. Traditional money transfer services are costly, deducting 10-15% of the principal amount sent, leaving recipients with less than they initially sent.
Additionally, recipients often have to travel long distances to a central bank or a cash pickup office, which is time-consuming and costly. There is also the risk of theft when traveling home with large amounts of cash. The system was simply expensive, problematic, and dangerous for the unbanked and rural poor who depend on funds transferred this way for survival.
The Zeepay Digital Solution
Zeepay's solution is to create digital links, often referred to as “digital rails,” which connect global money transfer operators directly to mobile wallets, bank accounts, and cards across Africa and the Caribbean. Zeepay plays a crucial role as a bridge, enabling funds sent from the US or Europe to be received instantly in mobile money wallets in Ghana or Zambia.
This immediately increases convenience because the recipient no longer has to travel to an office; the money is ready for immediate use, such as school fees or medical care. Zeepay connects to all mobile money networks (such as MTN, Vodafone, and others) and ensures that virtually anyone with a phone can receive funds, regardless of their mobile provider or banking status.
Why is it innovative?
Zeepay's innovation lies in its interoperability and unique financial structure. Unlike the early mobile money providers bound to a single mobile network, Zeepay built a platform that works with all networks, making it a comprehensive platform for international remittance.
Most importantly, to support enormous, real-time money transfers, the company has raised $20 million in equity and $31.3 million in debt. The debt financing, arranged by Verdant IMAP, is structured on shared collateral, which will simplify the process for new lenders and enable Zeepay to scale rapidly by providing the float financing required to manage real-time transfer needs.
What is Zeepay’s impact?
By placing financial inclusion and efficiency at the forefront, Zeepay achieves a measurable social impact. The company has processed a cumulative transaction value of over $6.7 billion over the last decade, with more recent statistics showing that the group settled more than 10 million remittance transactions valued at over $3 billion in one year alone, showing that its platform has scaled.
Through this relatively inexpensive and immediate service, the company ensures that more of the money sent home by the diaspora reaches the right hands and directly supports household welfare and spending. Its reach is growing rapidly with operations in more than 20 countries and mobile money licenses in at least six countries: Ghana, Zambia, Côte d'Ivoire,
What needs to improve?
While Zeepay's digital services offer enormous benefits, they must be continuously improved to address inherent risks and user concerns. Apparently, fraud and scams have affected the mobile money ecosystem in Ghana. Security requires continuous investment by Zeepay and its partners to safeguard users.
The company is addressing this issue by partnering with ThetaRay to use artificial intelligence-powered transaction monitoring to detect illicit activity. When it comes to customer service, Zeepay should ensure its customer support can resolve complex issues, especially those related to transaction reversals and fund losses, to build customer trust in the platform.
Sources:
https://www.dabafinance.com/en/news/zeepay-secures-18m-debt-facility-to-support-remittance-liquidity