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Three Steps to Driving International Remittance Growth

July 20, 2017

 

The days of traditional money transfer companies are numbered. Payments experts have predicted cryptocurrency, mobile wallets, P2P or some other new technology will alter the industry forever. Visa is subsidizing small merchants to go cashless and emerging economies like India have pulled currency out of the market. Surely Western Union, Ria and MoneyGram are not long for this world.

 

Technology is changing the industry and the big three are shackled with legacy platforms. Retail networks are cumbersome and expensive to maintain. Millennials expect instant gratification and prefer a mobile experience. These facts are undeniable. However, the current money transfer leaders are not resting on their laurels. They are investing in technology and transforming their organizations to meet the changing environment, so I believe it is premature to count them out. In fact, by implementing three simple strategies, they can actually grow revenue, transactions and profitability.

 

Expand the mobile and account network

  • Add virtual account capabilities

    • Send and receive accounts

    • Mobile account opening with remote ID capture

  • Utilize EFT networks to gain access to millions of debit/credit card accounts

  • Expand presence in key sender/ receiver regions

  • Replicate success in America into other geographies

 

Change the distribution channel mix to lower costs

  • New distribution channels

    • Kiosks

    • Virtual Accounts

    • Mobile Apps

  • Central bank clearing

  • Cryptocurrency/Blockchain to manage FX

 

Embrace FinTech and monetize their network and platform.

  • Remote Deposit Capture with Good Funds

  • Bill Pay

  • Microloans

  • Access to Earned Income Program

  • International Mobile Top Up

 

With competitive pressures lowering revenue per transaction and regulations and distribution costs rising, it will be difficult for remittance companies to maintain margins. However, by implementing the right technology, realigning /expanding distribution and embracing the FinTech revolution they can emerge stronger than ever.

 

At Payment Executive, we work with top FinTech companies that can help companies reduce costs, and drive revenue. Schedule some time to find out more at www.paymentexecutive.com/book-online