We got a sneak peak into mobile money tariffs in Malawi which showed just how expensive it is to send and withdraw mobile money in the country.
A look at the numbers shows that for some transactions, mobile money networks can charge as high as 40% to withdraw the amount being transacted. This means that if you are sending $100 to someone, they are going to receive only $60 by the time they withdraw the money from an agent or ATM.
From the table above, you can see that sending small amounts to another network is impractical as the cost is more than the amount sent.
The tariff rate does not get any better the more you send. For example, to send $30, 000 to another network, you are going to pay close to $1, 000 for a single transaction.
While digital payments and cryptocurrencies have continued to help bring down transaction costs, countries like Malawi are yet to fully benefit from such technologies.
A surge in crypto payments in Africa however is happening, and such challenges, when it comes to money transfers and remittances, are helping fuel the massive adoption of cryptocurrencies on the continent.