Trust Payments Partners With Innovation in Payments and Remittances (IPR)
We’re thrilled to announce that Trust Payments, a leading global payments company, will be a Platinum Sponsor for the upcoming Innovation in Payments and Remittances (IPR) Global 2023 event. Explore the exclusive article below directly from Trust Payments, where they explain how to take your remittance business to new heights and unlock its full potential.
Unlocking Potential: How Collaborating With a PSD Agent Boosts Your Remittance Business
Remittance, the transfer of funds by foreign workers to their home countries, plays a critical role in the global economy. The World Bank reported that in 2022 alone, the money remittance business grew by an estimated 5% to $626 billion, making it a bigger financial inflow than foreign direct investment.
And as the world turns increasingly digital, the online money remittance sector is anticipated to grow exponentially, thus reflecting the significant role it plays in global economies. However, operating a successful money remittance business comes with its fair share of challenges, including regulatory compliance, transaction costs, and building customer trust.
In this article, we will explore how collaborating with a PSD (Payment Services Directive) agent can significantly enhance your remittance business and how to leverage their expertise and expand your business reach.
Key challenges of remittance businesses
Despite its global importance, the remittance business grapples with several challenges. Regulatory compliance is at the forefront, as companies must adhere to a complex web of local and international regulations. These laws aim to combat illicit activities like money laundering, but complying with them can be costly and time-consuming.
Furthermore, high transaction costs, driven by fees for currency conversion, transfer processing, and other service charges, can deter potential users. Lastly, gaining customer trust is critical. The international remittance business involves moving people’s hard-earned money across borders, a process fraught with risk and anxiety for customers. Maintaining transactional security while offering a smooth user experience is thus vital to business remittance services.
What is a PSD agent?
The Payment Services Directive (PSD) is a European Union regulation that oversees payment services in the internal market. A PSD agent, authorised by the Financial Conduct Authority (FCA), is a business that provides financial services on behalf of another company under the PSD legal framework.
PSD agents are under the authority of a licensed e-money or payment institution that is fully responsible for their actions.
Joining Forces for Collaboration & Business Growth
For remittance companies, collaborating with an FCA PSD agent can be a game-changer, providing distinct advantages. PSD agents are skilled navigators of the complex legal requirements, licenses, and anti-money laundering regulations. Their understanding of compliance minimises regulatory risks, freeing remittance companies to focus on their core operations.
Moreover, PSDs can help mitigate fraud and ensure transactional security. They employ sophisticated technologies and algorithms to detect unusual patterns and thwart potential fraudulent activities. Their expertise in this realm significantly bolsters the credibility of the remittance business, winning customer trust.
Here are three additional benefits businesses can gain from partnering with a PSD agent:
1. Increased technological capabilities
PSD agents bring to the table robust technological solutions. They provide secure, reliable payment platforms that integrate seamlessly with existing systems, utilising APIs for flexibility and interoperability.
In addition, they offer data analytics capabilities, supplying crucial insights into customer behaviour and market trends. This valuable information can inform strategic decisions, supporting the growth and competitiveness of the remittance business.
2. Streamlined transaction monitoring, reporting, and customer support
Collaborating with a PSD agent brings efficiencies in transaction monitoring and reporting. They possess refined mechanisms for tracking and documenting transactions, ensuring all activities are compliant and traceable. Additionally, they offer comprehensive customer support services, enhancing the customer experience and fostering loyalty.
PSD agents have sophisticated systems for tracking transactions and generating comprehensive reports that comply with regulatory standards.
They document every transaction in detail, ensuring traceability, and present this data in user-friendly, accessible formats. This organised, precise reporting enables remittance businesses to have clear oversight of their operations, which in turn helps them identify patterns, track growth, monitor compliance, and make data-driven decisions.
3. A broader network
A partnership with a PSD agent can significantly expand the reach and network of your remittance business. With their international affiliations, PSD agents can help extend your services to new markets, augmenting your customer base. This geographical expansion boosts revenue potential and reinforces your standing in the global remittance arena.
How to Get Started with a PSD Agent
Collaborating with a PSD agent can significantly boost your remittance business by addressing the challenges faced in the industry, such as regulatory compliance, transaction costs, and customer trust.
By leveraging a PSD agent’s expertise, technological capabilities, and network, you can navigate complex legal requirements, mitigate fraud, streamline operations, and expand your business reach.
At Trust Payments, we have over 20 years of experience supporting financial services institutions with fast settlements and high approval rates. Our overnight settlement service makes remittances faster. We offer instant pay-in and pay-out functionality and a seamless payment experience for your customers.
If you’re ready to take your remittance business to new heights and unlock its full potential, we encourage you to contact our expert team today!
Video | Finding the Right Licence for Your Money Service Business
In the second instalment of our informative “How to Start Series,” Ibrahim takes a deep dive into the crucial topic of licences and their significance when establishing your very own money transfer business. Obtaining the suitable licence is significant, as it legitimises your venture, safeguards your customers, and builds trust within the market.
In this video, Ibrahim explains the various licences applicable to money transfer businesses, shedding light on their distinct features and requirements. Understanding the types of licences available is vital to ensuring a smooth and legally compliant operation in this industry.
Ready to dive deeper into launching your own MSB?
Contact our expert consulting team at RemitONE today and organise a free 30-minute consultation. Let us guide you towards success and help you get your money service business up and running as fast as possible. Schedule a free consultation with our experts:
Clear Junction Partners With Innovation in Payments and Remittances (IPR)
We’re thrilled to announce that Clear Junction, a leading global payments company, will be a Platinum Sponsor for the upcoming Innovation in Payments and Remittances (IPR) Global 2023 event. Explore the exclusive article below directly from Clear Junction, where they delve into their company mission, key values and the importance of partnering with brands like IPR.
Clear Junction is excited to be sponsoring IPR Global 2023. As a leading global payments company founded by a veteran team of financial professionals, we have worked tirelessly to build and develop our proprietary technology to facilitate an end-to-end regulated payments solution.
Innovation in Payments and Remittances (IPR) unites and inspires leaders with a strong drive to revolutionise the money transfer sector, bringing together industry stakeholders, visionaries, and business leaders to drive positive change in the industry. At Clear Junction, we help Financial Institutions gain access to a wide range of features such as accounts, virtual IBANs, payment networks, FX, and e-Wallets in a swift, secure, and compliant manner. Our sponsorship underscores their commitment to promoting interdisciplinary approaches and advancing knowledge exchange.
By partnering with us, our clients overcome the complexities associated with establishing banking relationships for international payments. They can tap into new markets and emerging technologies while streamlining their accounts and payment processes. This, in turn, simplifies the management and servicing of their customers, making managing and servicing their customers easy and convenient. Through an advanced infrastructure, Clear Junction enables swift and reliable movement of funds across borders, empowering businesses to expand their reach and cater to a global customer base.
Compliance and risk management are at the heart of everything we do
The last few years have demonstrated the importance of being steadfast and secure in your compliance, and at Clear Junction, it is woven into our strategy. We recognise that maintaining regulatory compliance is crucial for fostering trust, ensuring security, and mitigating risks throughout the financial ecosystem. Following regulations can pave the way for digital currency companies to tap into traditional banking services, which is crucial for growth and innovation.
In response to the recent regulatory pressures, we launched our escrow account solution to ensure protection for those wishing to trade in digital currencies and fiat. As far as it’s known, the new escrow accounts solution is the first of its kind in the payment space: Clear Junction acts as a settlement agent and provides a fundamental financial service that ensures each entity involved in a fiat/crypto transaction gets what they agreed to. Relying solely on the transaction data available publicly on the blockchain, all parties get exactly what they expect. Clear Junction acts as an independent entity providing the escrow accounts to guarantee peace of mind for both participants.
The future is through collaboration
The widespread adoption of technology within the financial industry, and the heavy streams of data being poured through financial institutions daily, have meant that compliance regulations have become increasingly complex and intricate. Maintaining compliance with regulatory standards is central to how we function as a payments company and underlines everything we do.
By facilitating collaborations between professionals from various fields, this event promotes interdisciplinary research that has the potential to address these complex challenges. The future is built by everyone, and we are delighted to be part of such a diverse network of industry professionals, policymakers and researchers. We are excited to see what ideas this event will bring.
We are beginning a new age in the digital payments space, and it’s an exciting place to be. We collectively have an opportunity to help write the next chapter. It is a long road to map out ahead, but we need to look for sustainable, long-term practices. This sponsorship serves as a testament to Clear Junction’s dedication to supporting initiatives that foster innovation, drive positive change, and contribute to the advancement of knowledge across industries.
To learn more about the new partnership with Clear Junction, get in touch at marketing@remitone.com
Secure your tickets to IPR Global, the 2-day hybrid event taking place in London, UK.
Register here: https://global2023.ipr-events.com/register
RemitONE Winners of the Remtech Innovation Remittance Solution Award at GFRID | United Nations Summit in Kenya, Africa!
We are delighted to announce that RemitONE has secured the prestigious Innovation Remittance Solution Award at the RemTECH Awards 2023 – GFRID | United Nations Summit in Kenya. This incredible achievement underscores our commitment to revolutionising the payments and remittance industry through cutting-edge solutions.
The RemTECH Awards, organised by CrossTech and held as part of the GFRID | United Nations Summit in Kenya, served as a platform to honour remarkable achievements and advancements in the fintech industry. Over three days, industry professionals from around the globe congregated to celebrate and engage in an enlightening conference.
Our success in the Innovation Remittance Solution category can be attributed to the groundbreaking tools we have developed. Notably, our Multi-Online Remittance Manager™ and Multi-Mobile Remittance Manager™ have played a pivotal role in advancing financial inclusion. These game-changing solutions bridge the gap between the banked and unbanked populations, providing greater accessibility and convenience for money transfers through our digital innovations.
We had the privilege of being assessed by esteemed judges who acknowledged the significance of our innovation. Leon Isaacs, judge and CEO of DMA Global, presented us with the award and praised our approach. He emphasised, “RemitONE has seen a problem and looked at various solutions and put them together in a way that truly works for the people who use their services or could utilise their services, which I think is innovative in many ways.”
Representing RemitONE at the event, our Managing Director of Africa, Ababacar Seck, accepted the award and delivered an inspiring acceptance speech. He reiterated our commitment to empowering clients, including banks, money transfer operators (MTOs), startups, and central banks, with innovative solutions tailored to their specific needs.
This award serves as a testament to our relentless pursuit of innovation and excellence. At RemitONE, we remain dedicated to shaping the future of the payments and remittance industry and improving the lives of migrants and their families worldwide.
To learn more about our award-winning Money Transfer Software reach out to us at sales@remitone.com.
Introducing RemitONE Loyalty Points
Loyalty points play a pivotal role in building long-lasting customer relationships. Rewarding them with points serves as a powerful motivator for them to consistently engage in transactions with your brand.
In this short video, our Associate Sales Director, Oussama Kseibati, discusses the benefits of loyalty points, how they work on the RemitONE system, and the best ways to take advantage of them.
What next?
If you’re looking for new money transfer technology, or you’re currently using the RemitONE Money Transfer Engine, get in touch with our Payments Experts to see how Loyalty Points can benefit your business.
Schedule a free consultation with our experts:
We’re Attending Money20/20 | 6-8 June 2023
We’re delighted that our Associate Sales Director, Oussama Kseibati, will be attending the upcoming Money20/20 live fintech conference in Amsterdam, and is excited to connect with prospects and valued clients.
If you plan to attend Money20/20, we’d love to set up a meeting and explore a possible relationship between RemitONE and your company.
Schedule a meeting with the RemitONE team by emailing sales@remitone.com
We’re thrilled to have the opportunity to connect with valued members of our industry and discover opportunities for a successful collaboration!
The Silicon Valley Bank Collapse: Challenges and Opportunities in the Money Transfer Industry?
Silicon Valley (SVB) was the go-to bank for many tech startups and its recent fall has left a sense of uncertainty within the community, with many wondering if this will impact their own banks. In this article we’ll focus on the aftermath of SVB’s collapse, exploring what it means for the industry and the opportunities it offers for innovation and advancement in the payments and remittance spaces.
First, let’s backtrack to how this happened in the first place, and explore the warning signs. The foreshadowing of SVB’s downfall began with their investment in treasury bonds which later hit them with a major blow as interest rates spiked up in an attempt to slow down inflation. The unprecedentedly sharp increase in withdrawals outnumbered their deposits as venture capitalists were investing less in startups whilst customers were withdrawing their funds at an accelerated pace. This made matters worse for SVB, as they had to provide the funds to compensate for the loss, and in desperation, they sold their bonds at a much lesser value, resulting in a huge loss of $1.8 bn.
What effect has this had on the money transfer industry?
Challenge #1: Slower Operations and Increased Costs
SVB’s collapse caused considerable hindrances for payroll, resulting in delayed or unpaid payments to employees. This also may have led to a shortage of staff and disruptions to money transfer companies’ day-to-day operations, leaving businesses understaffed and unable to resolve customer issues or complaints.
As a result of these setbacks, customers may have experienced missed or delayed transfers, which must have had a serious impact on the customer’s trust and confidence in the money transfer market. Businesses may have suffered from a decline in transaction volumes and revenue slowdowns as a result.
Solution #1: Rebuild Customer Relationship
Money Transfer Operators (MTOs) must win back customer trust. They can achieve this by investing in a secure and scalable technology platform that is built on a robust infrastructure. Additionally, offering a range of services beyond simply money transfers (e.g. utility bill payments, wallet transfers, airtime etc), can also help gain customer trust.
MTOs can also strive to offer even more competitive rates and lower transaction fees, which not only attracts new customers but helps retain trust with existing ones. Cost reduction can happen by investing in technology that automates processes and compliance procedures and opens up new revenue-sourcing channels such as mobile apps and online portals.
Challenge #2: Difficulty for Immigrant Communities
The remittance market thrives hugely on transactions by immigrants who send money to their home countries.
With the exit of some smaller players, larger companies can gain more bargaining power to increase the costs of fees and charges; this burden is then passed onto the end customers, making it more difficult for the latter to send money to their loved ones.
Solution #2: This problem may, in fact, prompt a change in customer behaviour. For example, challenging circumstances can often push people to explore alternate routes which they may have been hesitant to use before, such as mobile money. This may result in traditional banks losing some of their dominance over digital banks, allowing the latter to gain market share, especially as they often have lower fees and are more convenient.
In addition, digital banks are continuing to gain ground in the money transfer market; this may likely continue as more people become tech-savvy and embrace its benefits. It is crucial for MTOs and digital banks to evolve and adapt to meet customers’ changing needs by monitoring the market and consistently updating their marketing strategy.
Challenge # 3: Tighter Regulation
The Federal Reserve introduced a new program to help tackle instability and safeguard companies impacted by SVB’s downfall. Similarly, this could inspire money transfer regulators to also introduce tighter rules and regulations around monitoring and tracking transactions using reliable technology platforms.
However, there are some downsides as well, including a slowdown in operations and higher costs. A rise in compliance expenses may also result in companies having to exert more money to invest in new technology or additional staff to comply with regulations. This is especially challenging for smaller companies that may not have sufficient funds. It can also lead to increased delays in transactions as agents and companies need to perform additional checks.
Solution #3: Despite these challenges, this could in fact improve compliance practices in many companies. With reliable technology platforms to enforce transactional monitoring and process automation in place, companies can reduce the risk of fraud and improve their security measures. All of these improvements will aid in strengthening the money transfer industry and allow it to become more reliable than ever.
The Outcome for the Industry: Innovation Opportunity
Despite the challenges brought about by the recent instability in the payments and money transfer industries, this situation can also stimulate growth opportunities.
As areas of weakness within businesses are revealed, a better understanding of how to improve processes and systems will also become apparent. In addition, the retreat of some tech companies will provide opportunities for new players to enter with fresh ideas, products and services. Simultaneously, it encourages industry players to collaborate in finding solutions as each can provide their area of expertise to resolve the problem, creating beneficial progress.
RemitONE and other tech providers can help companies affected by the SVB collapse.
Don’t miss out on industry insights – join our community of professionals and be the first to hear about trending topics, exciting events and more!
Contact marketing@remitone.com to find out more.
Video: Saving the Crucial Role of Agents and Banks in the Remittance Industry
Brought to you by RemitONE, the Innovation in Payments and Remittances (IPR) Global Hybrid event took place on 19-20 October 2022 and included a series of fantastic discussions.
Wallets have been on the rise in recent years which has forced banks to embrace technological advancements to keep up with the pace of digital innovations in the remittance industry. In this panel, we uncover the driving forces behind this change and the possible impact it may have on banks, agents, and the overall money transfer landscape in the coming years.
Moderator:
- Ababacar Seck, Managing Director – Africa, RemitONE
Our panellists include:
- Sharon Gibson, CEO, JMMB Money Transfer
- Leon Isaacs, Founder and CEO, DMA Global
- George Boateng, COO, Unity Link
Why are pay-out transactions shifting to wallets?
There’s been an increase in the popularity of pay-out transactions through wallets, due to their accessibility and simplicity. This upward trend is particularly prominent in Asia and Africa. For example, in Ghana, the mobile money market reached $121.8 Billion in 2022 and is expected to grow to $590.7 Billion by 2028. George believes the reason behind this is attributed to factors such as convenience, as wallets are more easily within reach than banks, and overall save time and effort.
Leon also reinforces, wallets are often preferable as they’re easy to use which means people don’t require additional assistance. Other drivers are, the senders have more options, people have become more digitally savvy and most notably, it’s cheaper. Another key benefit of wallets is their increased security due to tokenization, which is a unique identification number attached to any personal information such as account numbers.
However, it’s not the same in every region. Sharon shares that in Jamaica there’s only one institute that offers mobile wallets, but that could change very soon. The recent launch of CBDC can possibly encourage more institutions to embrace digital wallets.
How can banks and traditional agents cope in the digital era?
Leon states in many cases it’s rare for agents or banks to be solely a remittance business. While they may have their core purpose, they should adapt and diversify their services to progress ahead in the competitive market. Sharon suggests that banks can collaborate with more agents to offer their products and services and satisfy client needs, however, there need to be adequate technology capabilities in place for it to be a success.
Data shows that customers prefer the physical contact of agents as they instil trust and provide clear guidance when a problem occurs, as opposed to communicating with a bot. A study even found that 64% of customers commented that they could not solve a problem when using mobile apps to transfer money. Overall, agents play a crucial role in building customer trust and loyalty especially as a large proportion of transactions are still carried out in stores and not through digital means, which proves they still hold a strong position.
There are different considerations for the send and receiving end for agents. The pandemic did accelerate a surge in people adopting digital payments and transactions which resulted in a lesser need for people to visit agents, and it’s likely that this will continue. As for the pay-out side, there is potential for agents to educate customers as online accessibility varies in countries where people are still hesitant about online banking and money transfers – this creates a good chance for agents to bridge the gap by acting as the intermediaries between clients and digital payments. Customers already trust these agents, which makes it more probable for them to adopt changes with the agents’ help.
Leveraging technology is another technique agents can utilise to enhance efficiency and strengthen their role further. For instance, many people have formed personal relationships with agents but sometimes lack financial literacy. In such cases, agents can take advantage of innovations such as card readers to increase customer security and reinforce the trust clients have in them. This can solidify the bond between the agent and client as well.
MNOs are taking over transactions led by banks, is this healthy? What does this mean for the future of final inclusion?
There is no denying that competition drives innovation and MNOs gaining the lead has pressured banks to also step up their game to progress ahead. MNOs often educate the underbanked on how to use their products, an area where banks are lacking. There’s also greater flexibility with MNOs, as people can instantly access their digital funds from the comfort of their homes without the need for documentation and physical visits to the bank, helping them to save precious time.
MNOs particularly boast a good distribution of agents across both send and pay-out. However, their products excel in locations where there is a vast digital presence (although they still have a huge potential to increase penetration of financial services, which will continue to encourage financial inclusion). In locations where there is good digital infrastructure, the need for agents to pay out cash is also lessened, this creates a window of opportunity for them to diversify their products and services. One example is M-pesa in Africa, where digital wallets are the primary method of payment. As a result, customers rarely use physical cash, which suggests that people will only need to visit a branch for a specific need unrelated to money transfers or cash-outs.
The changing face of remittance clients requires a new approach, how can MTOs keep on top of the needs of clients and how will this affect the business model?
In contrast to the past, migrants are more skilled individuals and therefore less reliant on agents, demonstrating increased digital literacy. As a result, the power balance has shifted to the customers, with the internet providing easy access for them to quickly switch to other companies if they are unsatisfied with the service.
Clients also tend to focus more on convenience, such as banking being available everywhere at any time and more demand for receiving immediate results. This places a heavy burden on banks – they often have to increase their costs to expand their workforce and enhance their operations more robustly. However, with the increasing popularity of social media, email, live chat and phone, it becomes challenging for the banks to meet the demand – this can lead to dissatisfaction, complaints and negative reviews, overall damaging the brand’s reputation.
To minimise this problem, Sharon proposes a collaborative relationship between banks and agents, to exchange knowledge and expertise and gain a thorough understanding of the client’s needs. Leon explains that companies need to rethink their strategies to maintain a close connection with clients whilst keeping pace with their changing needs. However, a positive takeaway is that customers are benefiting from having their needs finally met and the industry continues to thrive.
Can technology help agents preserve their role?
Whilst technology can be costly, it can be a useful tool to streamline operations more effectively. One way is gathering accurate data in a more interactive way instead of relying on traditional surveys. Social media platforms like Twitter polls can help analyse consumer behaviour, identifying factors which motivate them to pick specific agents over others.
As the rapid surge of digitalisation continues, more businesses are having to adapt. At RemitONE, we play a pivotal role in helping banks shift to the online realm. Our software empowers agents to provide customers with user-friendly portals whilst providing an array of options for them to choose from, such as airtime top-ups, prepaid card services and more. By utilising our industry-leading software, you can increase your transaction rates whilst maintaining top-notch security through our AML and KYC checks. This results in a seamless process from send to pay-out. You can also gain access to our global network of clients and partners that we have built over decades for you to access right away, saving you time, cost and headache.
Interested in powering up your business? Get in touch with our experts to provide your customers with a secure, convenient, and exceptional money-transfer experience.
Tap into our experts and schedule a free consultation.
References
https://www.imarcgroup.com/ghana-mobile-money-market
https://www.westernunion.com/blog/en/leery-of-how-digital-wallets-work-let-us-break-it-down-for-you/
Innovation in Payments and Remittances (IPR) Global 2022 – Brought to you by RemitONE
RemitONE was pleased to bring to our great industry the Innovation in Payments and Remittances (IPR) Global event at The Westin Hotel, London, UK, that took place from Wednesday 19 to Thursday 20 October 2022.
IPR Global is the ultimate hybrid event for those passionate about transforming the money transfer industry. The event brings together global industry stakeholders, visionaries and business leaders to make informed decisions and drive positive change in the industry.
The IPR Global event featured 30 prominent industry speakers, including leading experts from Al Fardan Exchange, JMMB Money Transfer, Moneygram, RemitONE and many others from the money transfer supply chain.
Over 1000 online and 100 in-person attendees took part in the expert panel sessions, training courses and networking breaks at The Westin Hotel and on the dedicated online platform.
Watch all the panel sessions on-demand here.
The Growing Money Transfer Industry: Unlocking new revenue streams and seizing opportunities
Partnerships and Interoperability in the Payments Ecosystem
Mobile Money and the Utilisation of Super Apps
IPR Course: RegTech for Compliance in the Money Transfer Industry
Building Operational Resilience in a Digital Industry: Security, KYC and Compliance
Saving the Crucial Role of Agents and Banks in the Remittance Industry
Does Blockchain have a Future in Payments and Remittances?
IPR Course: The Ultimate Guide for Start-Ups
What next?
To discuss any of the panel sessions or to get more information on how RemitONE can support your Money Service Business, get in touch with the team at sales@remitone.com
Q&A with Industry Experts: Ibrahim Muhammad
Watch the latest videos in our ‘Q&A with Industry Experts’ series, featuring Ibrahim Muhammad, Payments Consultant at Finxplor.
In our interview, Ibrahim reviews the compliance and regulation requirements companies need in order to start, maintain and grow a Money Service Business (MSB).
What next?
Now that you’ve watched our video we want to help you get the most out of it and plan for the rest of 2022.
Tap into our experts and schedule a free consultation.