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
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
Embrace FinTech and monetize their network and platform.
Remote Deposit Capture with Good Funds
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