We have been working closely in the money remittance industry for the last decade. We have worked with consumers directly and also provided services to businesses in various ways.
Our experience in the B2C market led us to appreciate that the biggest challenge in the remittance industry is to acquire customers. It not only costs a lot but also there is a lack of loyalty in the market due to the nature of the fee-based pre-paid transaction model.
We are here to change that. We are not doing it alone. We are doing it with businesses that possess a significant number of migrant customers catering for other services e.g. telecom, travel, media, etc. We provide them with the technology, compliance, and licence to operate as our agent. In return, the partnering business simply onboards its customers for the remittance product. We work on a revenue share model with our partners. This is the most effective way to compete with big players without needing big investment and a high level of resources.
What about the receiving side of the remittance transaction? We think the remittance process needs to be redesigned. There is much pain on the sender in initiating a remittance transaction. Not only she departs with her money but also she has to obtain the account details of the receiver, enter those details without error, complete an arduous due diligence process, and so on.
It is a big event to send money, set aside 15 minutes to do the job! Compare this with paying for something on Amazon or a coffee shop. The receiver makes the payer's life as simple as it could get to make a payment. Therefore, it would be quite handy if we could re-engineer the remittance process and get the receiver to initiate the process by entering their banking details. This will leave the sender to simply do due diligence and make the payment.
This could have far-reaching implications for financial institutions, banks & mobile wallets. Till now they play the role of a bystander or a simple channel without control of the transaction. If we place the receiver as the initiator of the transaction then the receive country banks and wallets get a fair shot to compete in which account the receiver will receive remittance. The receiver may have multiple accounts and mobile wallets. The easier the banking provider can make it for the receiver to initiate the transaction, the more business they can expect to get.
That's where Simple Transfer comes in. We enable the foreign banks and mobile wallets not only to initiate the remittance request but also to receive that remittance through a white-label platform without the need for many integrations with global remittance providers. Through this, the banks and wallets in receive countries can have control over inward foreign remittance.