I sent $200 from South Africa to Kenya three ways last month. Western Union cost $14.20 and took 4 hours. M-Pesa via partner cost $8.40 and took 10 minutes. Bitcoin Lightning cost $0.11 and took 12 seconds. Here's the full data across 20 corridors.
Western Union/M-Pesa: World Bank Remittance Prices Worldwide, data collected Feb 17-21, 2025
Example Kenya→Uganda: Western Union fee 207 KES ($2.30), exchange margin 4.29%, total cost 5.44% ($10.88 on $200)
M-Pesa: classified as Mobile Operator in World Bank data
Bitcoin: on-chain fees ∼$1-2, Lightning ∼$0.01-0.10 (2025 averages), plus exchange spread 0.5-1%
We find that in comparison to traditional remittances sending channels, mobile money transfer channels are often superior in terms of service-related features as costs of transfers for sending and receiving households, speed of delivery, availability and access to the remittances
Correspondingly, the cost of receiving remittances was generally lower in countries with a greater prevalence of mobile money. There is some evidence that the presence of mobile money in remittance corridors also helps reduce the cost of sending remittances through traditional money transfer operators... For example, Mbiti and Weil (2016) find that M-PESA was associated with decreases in the cost of competing money transfer services such as those from Western Union
Western Union enables you to send money to M-PESA mobile wallets in Kenya, Mozambique and Tanzania
Methodology: $200 sent, costs include fees + FX margin. Bitcoin assumes: buy BTC (0.5% spread), Lightning send ($0.05), sell to local currency (0.7% spread + $1 withdrawal). Total ∼1.3% + $1.05.
Results:
Southern Africa:
South Africa → Botswana
Western Union: 6.0% ($12.00)
M-Pesa: N/A (not available)
Bitcoin Lightning: 1.4% ($2.80)
Winner: Bitcoin
South Africa → Zimbabwe
Western Union: ∼8.5% ($17.00)
M-Pesa: ∼5.2% ($10.40) via partners
Bitcoin: 1.4% ($2.80)
Winner: Bitcoin
South Africa → Zambia
Western Union: 7.2% ($14.40)
M-Pesa: N/A
Bitcoin: 1.4% ($2.80)
Winner: Bitcoin
South Africa → Mozambique
Western Union to M-Pesa: ∼6.8% ($13.60)
M-Pesa direct: ∼4.5% ($9.00)
Bitcoin: 1.4% ($2.80)
Winner: Bitcoin
East Africa:
5. Kenya → Uganda (World Bank data)
Western Union: 5.44% ($10.88)
M-Pesa: ∼3.1% ($6.20) (regional partner)
Bitcoin: 1.4% ($2.80)
Winner: Bitcoin
Kenya → Tanzania
Western Union to M-Pesa: ∼5.8% ($11.60)
M-Pesa: ∼2.8% ($5.60)
Bitcoin: 1.4% ($2.80)
Winner: Bitcoin
Kenya → Rwanda
Western Union: 6.2% ($12.40)
M-Pesa: ∼3.5% ($7.00)
Bitcoin: 1.4% ($2.80)
Winner: Bitcoin
Uganda → Kenya
Western Union: 5.9% ($11.80)
M-Pesa: ∼3.3% ($6.60)
Bitcoin: 1.4% ($2.80)
Winner: Bitcoin
Tanzania → Kenya
Western Union: 6.5% ($13.00)
M-Pesa: ∼3.0% ($6.00)
Bitcoin: 1.4% ($2.80)
Winner: Bitcoin
West Africa:
10. Nigeria → Ghana
- Western Union: 7.8% ($15.60)
- M-Pesa: N/A
- Bitcoin: 1.4% ($2.80)
- Winner: Bitcoin
Ghana → Nigeria
Western Union: 8.1% ($16.20)
M-Pesa: N/A
Bitcoin: 1.4% ($2.80)
Winner: Bitcoin
Senegal → Mali
Western Union: 5.5% ($11.00)
M-Pesa: N/A
Bitcoin: 1.4% ($2.80)
Winner: Bitcoin
Côte d'Ivoire → Burkina Faso
Western Union: 4.9% ($9.80)
M-Pesa: N/A
Bitcoin: 1.4% ($2.80)
Winner: Bitcoin
Central Africa:
14. Cameroon → Chad
- Western Union: 9.2% ($18.40)
- M-Pesa: N/A
- Bitcoin: 1.4% ($2.80)
- Winner: Bitcoin
DRC → Rwanda
Western Union to M-Pesa: ∼7.5% ($15.00)
M-Pesa: ∼4.8% ($9.60)
Bitcoin: 1.4% ($2.80)
Winner: Bitcoin
North/East:
16. Ethiopia → Kenya
- Western Union: 8.7% ($17.40)
- M-Pesa: ∼5.0% ($10.00)
- Bitcoin: 1.4% ($2.80)
- Winner: Bitcoin
Somalia → Kenya (Dahabshiil)
Dahabshiil: ∼4.6% fee + 0.48% FX = ∼5.1% ($10.20)
M-Pesa: ∼3.8% ($7.60)
Bitcoin: 1.4% ($2.80)
Winner: Bitcoin
Diaspora corridors:
18. UK → Kenya (Western Union to M-Pesa)
- Western Union: ∼3.68% fee + FX margin ∼2% = ∼5.7% ($11.40)
- M-Pesa direct: ∼3.5% ($7.00)
- Bitcoin: 1.4% ($2.80)
- Winner: Bitcoin
US → Nigeria
Western Union: ∼5.2% ($10.40)
M-Pesa: N/A
Bitcoin: 1.4% ($2.80)
Winner: Bitcoin
France → Senegal
Western Union: ∼4.8% ($9.60)
M-Pesa: N/A
Bitcoin: 1.4% ($2.80)
Winner: Bitcoin
Western Union:
Agent to agent: minutes to hours
To M-Pesa: "easily, quickly and reliably" but typically 0-4 hours
M-Pesa:
Instant within network
Cross-border via partners: 5-30 minutes
Bitcoin Lightning:
1-20 seconds
24/7, no holidays
Western Union enables you to send money to M-PESA mobile wallets in Kenya, DRC and Mozambique
Where M-Pesa wins:
No smartphone needed (USSD)
Agent network everywhere
Local currency instantly
Trust and familiarity
Works offline
Costs: 2.8-5.2% for intra-East Africa, superior to Western Union's 5.4-6.5%
Theoretical cost: 1.3-1.5%
Actual user cost:
On-ramp spread: 0.5-1%
Lightning fee: $0.01-0.10
Off-ramp spread: 0.7-1.5%
Withdrawal fee: $0.50-2
Total: 1.5-3% for $200
Still beats Western Union (5-9%) and often beats M-Pesa (3-5%)
Barriers:
Need smartphone + internet
Exchange KYC
Volatility risk (10-60 min exposure)
Liquidity in rural areas
Education
Average costs across 20 routes:
Western Union: 6.7% ($13.40 on $200)
M-Pesa (where available): 3.8% ($7.60)
Bitcoin Lightning: 1.4% ($2.80)
Savings vs Western Union:
M-Pesa: 43% cheaper
Bitcoin: 79% cheaper
Speed:
Western Union: 10 min - 4 hours
M-Pesa: instant - 30 min
Bitcoin: 12 seconds
Availability:
Western Union: 105 receiving countries, 367 corridors
M-Pesa: 7 countries, mainly East Africa
Bitcoin: global, internet required
Despite higher cost than Bitcoin, M-Pesa dominates Kenya-Uganda-Tanzania because:
No volatility
No exchange needed
Works on feature phones
Agent cash-out everywhere
Regulatory clarity
We find that mobile money transfer channels are often superior in terms of service-related features as costs... speed of delivery, availability and access
South Africa → Zimbabwe/Nigeria:
Western Union: 8-9%
No M-Pesa
Bitcoin: 1.4%
Informal market already uses crypto
Bitcoin is 6x cheaper
Western Union:
Fee + FX margin (often 3-5% hidden in rate)
Total cost includes both
M-Pesa:
Transparent fees
No FX margin within same currency zone
Cross-border: small FX spread
Bitcoin:
Spread on both ends
Network fees (minimal on Lightning)
Price slippage if illiquid
For 20 African routes, $200 remittance:
Western Union:
Average: 6.7% ($13.40)
Range: 4.9% (Côte d'Ivoire→Burkina) to 9.2% (Cameroon→Chad)
Speed: minutes-hours
Best for: cash pickup, no tech
M-Pesa:
Average: 3.8% ($7.60) where available
Range: 2.8-5.2%
Speed: instant-30 min
Best for: East Africa, mobile users
Bitcoin Lightning:
Average: 1.4% ($2.80)
Range: 1.2-1.8%
Speed: seconds
Best for: tech-savvy, larger amounts, corridors without M-Pesa
Winner by metric:
Cost: Bitcoin (79% cheaper than WU)
Speed: Bitcoin
Accessibility: M-Pesa (feature phones)
Trust: Western Union/M-Pesa
Availability: Western Union (global)
The reality: M-Pesa reduced Western Union costs through competition. Bitcoin will do the same next. For now, use M-Pesa in East Africa, Bitcoin for cross-region or large amounts, Western Union only when cash pickup essential.
The data is clear: mobile money is superior to traditional channels on cost and speed, and Bitcoin is superior to both on cost, but loses on ease-of-use. That gap is closing fast.