"MasterCard Taps Into Somalia's Remittance Money, Battles Visa In Africa"

...MasterCard says it wants to distribute debit cards to Somali citizens to help them receive money from abroad, something that has been increasingly difficult to do and on which the Somali economy, which would crumble without remittances from emigrants, depends.

In recent months, American and European governments have moved to cut off transfers to Somalia, amid a crackdown on money laundering and fears that international funds may be going to Somalia-based terrorist group al-Shabab. The situation has left many Somalis struggling to access much-needed remittances from friends and relatives abroad and created a billion-dollar gap that MasterCard seeks to fill...

“Since there’s no silver bullet that will solve the challenges facing Somalia’s remittance system, the increased interest on the part of the business community, both Somali and international, is welcome,” said Scott Paul, Oxfam America’s Senior Humanitarian Policy Adviser. “However, for the time being Somalis are still overwhelmingly dependent on traditional remittance companies, and it will take some time for other mechanisms to attain the same kind of coverage and social capital,” he said. [refers to Merchants Bank of California & Somali Premier Bank]