Western Union, the 175-year-old titan of money movement, is placing a fresh bet on African fintech. In a move to defend its dominance against a wave of digital-first challengers, the US company announced a partnership today with Sasai Fintech, a division of Strive Masiyiwa’s Cassava Technologies.
The deal sees the launch of a co-branded mobile app in South Africa, designed to funnel the country’s significant outbound remittance flows through Western Union’s global settlement rails, while utilising Sasai’s local licensing and “super app” infrastructure.
For Western Union, which has historically relied on physical agent networks, the partnership underscores a continued pivot towards digital origination. For Sasai, it represents a validation of its “Payments-as-a-Service” (PaaS) model — providing the regulatory and tech wrapper for global players to access African consumers without building from scratch.
The $1bn prize
While the narrative around African remittances often focuses on inflows from Europe and the US, South Africa presents a lucrative inverse opportunity. As the continent’s most industrialised economy, it is a magnet for migrant workers from across the Southern African Development Community (SADC), particularly Zimbabwe, Mozambique, and Malawi.
According to market data, outbound personal remittances from South Africa exceeded $1bn in 2024. Industry research from PayNXT360 projects this market will grow at a compound annual rate of 2.2% through 2028, potentially hitting $1.17bn.
This volume has traditionally been handled by a mix of informal channels — such as bus drivers and cross-border couriers — and formal money transfer operators (MTOs). However, the shift to digital is accelerating. The announcement notes that nearly 80% of South African households now have internet access, with 73% connecting via mobile, creating a prime environment for app-based switching.
“South Africa is home to a growing population of digitally savvy consumers… that seek ways to move money internationally with flexibility and confidence,” said Mohamed Touhami el Ouazzani, Western Union’s Head of Africa.
Infrastructure meets access
The partnership structure plays to the strengths of both incumbents. Western Union brings liquidity and a payout network spanning 200 countries and territories. Sasai brings the local “last mile” — a network of over 150,000 retail outlets for funding accounts, and a tech stack already integrated into the local banking system.
The new app allows users to fund transfers via debit/credit cards and electronic funds transfers (EFT), as well as cash at Sasai’s retail points.
Darlington Mandivenga, CEO of Fintech and Digital Platforms at Cassava Technologies, framed the deal as part of a broader infrastructure play. “Backed by our regulated assets, integrated tech stack, super app platform, and innovations like stablecoins, we’re redefining Africa’s payments infrastructure,” he said.
The specific mention of stablecoins is significant. It suggests Cassava is eyeing blockchain-based settlement to compress costs in the future — a route already being aggressively explored by competitors like Yellow Card and various crypto-corridor startups.
A crowded battlefield
Sasai and Western Union are not entering an empty field. The South African remittance corridor is one of the most contested on the continent.
- Mukuru: The dominant regional player, with a massive brand presence and deep agent networks in Zimbabwe and Malawi.
- Mama Money: A purely digital challenger that gained traction by undercutting bank fees.
- WorldRemit & Remitly: Global digital players that have been aggressively marketing to the African diaspora.
- Banks: Traditional lenders like FNB and Standard Bank have improved their own remittance apps, though often at higher price points.
Sasai’s edge may lie in its existing ecosystem. Its “super app” includes in-chat payments and split-funding tools used by stokvels (informal savings clubs). If Cassava can convert these social users into remittance customers, they may achieve lower customer acquisition costs than pure-play rivals.
For now, the app is live on Android and iOS, offering Western Union a modernized front-end in Africa’s most critical financial hub. Whether this hybrid model — old rails meets new tech — can outpace the agile, crypto-native startups nipping at their heels remains the billion-dollar question.