BY SALIM KALANZI
Effective July 6 this year, WorldRemit, a cross-border digital payments service provider will shut down part of its money transfer business arm in Uganda. The company has not given any explanation for the decision that could impact thousands.
Beyond June 6, Ugandans will not be able to send money or top-up airtime for individuals in other jurisdictions. However, WorldRemit maintains that Ugandans will still be able to receive money from abroad via their phones.
“From 6 June, WorldRemit will not be accepting any new money transfers or airtime top ups from Uganda. From 6 July, WorldRemit will be fully closing money sending services in Uganda, and our relationship with you will come to an end,” a statement from the firm reads in part.
“This change affects money transfers and airtime top-ups sent from Uganda only.
Transfers to Uganda are not impacted by this change.”
WorldRemit has signed several partnerships with institutions in Uganda over the past few years to enable the seamless transfer of funds. The latest partnerships with financial institutions include; Housing Finance Bank, Dfcu Bank, and Brac International.
What happens to existing money transfers?
According to WorldRemit, money transfers created before June 6 will be processed as usual, and a customer will continue to receive SMS and email updates about their transfer’s progress even beyond this date.
“If there is a problem with your transfer (for example, your recipient details are incorrect), we will contact you via email. If you are already in touch with us about a past transfer, you can continue to talk to our Customer Care team.
“If you wish to amend or cancel your transfer and you are no longer able to access your account via web or app, please contact us via phone,” WorldRemit said.
The Bank of Uganda reported that remittance inflows into Uganda were USD1. 2 billion or sh4.3 trillion in 2020 which was a reduction of $200 million from 2019 due to the COVID-19 pandemic.