Microfinance Focus, October 13, 2011: A month after the Vodafone MPAiSA launched its international remittance service in Fiji, Digicel Mobile Money in partnership with currency exchange service provider Klick Ex has launched mobile remittance service covering New Zealand, Samoa, Tonga and Fiji corridor. The competition has reduced the remittance fees to NZ$3.

Digicel Mobile Money will enable the transfer of money from a New Zealand bank account to a Digicel mobile phone in the Islands. Recipients can use digital wallet to buy goods, pay bills, buy or send Digicel Top Up credit. More than 300 stores and agents throughout Pacific Islands are participating in the service.

“International remittances are a major source of financial security for households across the Pacific and a major contributor to economic activity in many countries. Making remittances cheaper, more convenient and faster will make a big difference in the lives of Pacific Islanders and we are happy to work with Digicel and its partners in this effort,” says Tillman Bruett, Financial Inclusion Advisor and Project Manager, Pacific Financial Inclusion Programme.

In the Pacific, around US$470 million was formally remitted to Forum island countries (FICs) in 2008. The primary sources of remittances to the Pacific are Australia, New Zealand and the United States of America. It is estimated that remitters to the Pacific pay at least US$90 million in remittance fees each year.