Navigating the Payments and Remittance Landscape: Trends, Predictions, and Pioneering Progress

The remittance landscape is in the midst of a remarkable transformation. From customer-focused innovations like mobile wallets, streamlining the remittance process, to the incorporation of artificial intelligence (AI) for more efficient operations. As we navigate through this changing financial terrain, it’s crucial to understand the evolving customer needs, which are increasingly leaning towards digital solutions for convenience and efficiency.

This article will unlock valuable insights into the trends and strategies shaping the payments and remittance industries whilst uncovering the challenges and opportunities that lie ahead.

Moderator:

• Leon Isaacs, CEO & Founder, DMA Global

Panellists:

• Wayne Gould, Head of Financial Services, Trust Payments
• Sukhi Srivatsan, Head of Account Management, AZA Finance
• Olufemi Olaogun, Head of Payments and Financial Institutions, Leatherback
• Richard Meredith, Head of Sales and Key Partners, Moneygram

What are key developments in the remittance landscape to look out for?

One key development which has emerged prominently in the remittance landscape is a growing emphasis on customer-oriented progress, as highlighted by Sukhi. This shift is evident through innovations like the invention of mobile wallets, designed to facilitate quick and hassle-free transactions for users. Mobile wallets have not only simplified the remittance process but have also enhanced the overall user experience, making it more convenient and accessible for a wider range of customers.

Another interesting and ongoing dynamic in the remittance sector revolves around the mobilisation and automation of payments to achieve greater efficiency. This involves the utilisation of cutting-edge technologies like AI to carry out repetitive tasks, thereby liberating valuable time for teams to concentrate on more critical and strategic areas. By leveraging AI in this manner, businesses in the payments and remittance space can significantly accelerate their progress and drive better results, all while ensuring that their operations remain swift and precise. 

Multiple panel speakers also voiced blockchain and open banking to be game-changers. The integration of blockchain technology has simplified the movement of money, creating a more efficient and secure environment for processing transactions. Open banking, on the other hand, has enabled a more seamless and interconnected flow of funds. Together, these developments are propelling the industry toward a future where payments and remittances are not only faster and cost-effective but also imbued with a higher degree of transparency and security, ultimately benefiting merchants, financial institutions, and consumers alike. 

What data or statistics highlight the future growth of the money transfer industry? 

Customer expectations in the realm of remittances are undergoing notable shifts, as outlined by Richard. Despite economic downturns and recessions, the desire for people to respond to the financial needs of loved ones back home remains remarkably resilient. Notably, millennials are increasingly turning to digitalised methods for sending money, highlighting a growing preference for convenience and efficiency. A Moneygram survey revealed that over 80% of respondents expressed a willingness to send money back home, even in the face of economic challenges.

It’s important to note that these evolving expectations can vary significantly between geographical markets. For instance, in Mexico, more than 90% of individuals visit physical stores to collect their remittances, while in India, the approach leans more towards account-based methods. This geographical variance underscores the importance of tailoring strategies and pricing to meet the specific demands of each market.

In addition, as pointed out by Olufemi, customers now place a premium on the speed and cost-effectiveness of fund transfers. In essence, the evolving landscape of customer expectations in remittances is characterised by a growing demand for convenience, efficiency, and competitive rates, driving the industry to adapt and innovate to meet these changing needs.

What are some successful partnership case studies within the remittance or payments industry?

Leatherback forges partnerships to address a common challenge where customers may be uncomfortable conducting transfers with Money Service Businesses (MSBs) that lack a bank account. This collaboration ensures that businesses can continue their operations without the need for establishing local accounts in various countries, such as Nigeria, South Africa, or Ghana. This partnership-driven approach streamlines the process, eliminating potential bottlenecks and minimising expenses that would otherwise be associated with creating an internal team to handle these complexities.

Recognising the popularity of mobile wallets on the continent, Moneygram has built pivotal relationships with companies such as AZA Finance, Trust Payments, and strong partnerships in Ghana, including Z-pay. These collaborations have been crucial in expanding Moneygram’s reach and enhancing its ability to serve a broader receiving network. In India, where account-based money transfers are prevalent, this strategy has effectively reduced the digital side cost base, enabling Moneygram to diversify and enhance its product offerings in response to the ever-changing consumer demands.

Furthermore, Moneygram is actively exploring innovative solutions like blockchain technology, particularly with its partnership with Stellar. This initiative aims to facilitate the instant transfer of remittances to digital wallets, bridging the gap between traditional cash and cryptocurrencies. Notably, this approach holds the promise of reducing costs in the future, a significant advantage in the rapidly growing landscape of remittances. The success stories shared underscore the importance of adaptability and collaboration in navigating the remittance industry.

Can you share insights into business strategies that effectively utilise innovation whilst being cost-effective? Additionally, how do you approach security and fraud prevention strategies?

Some businesses may have deep-rooted traditional methods and personal client relationships, making the transition to online operations a significant paradigm shift. Wayne delves into how Trust Payments takes a consultative approach, employing dedicated teams that work closely with Money Transfer Operators (MTOs) to swiftly resolve issues, ensuring a strong connection to the business. They also focus on data-driven insights to provide a comprehensive view of their clientele, facilitating fraud prevention and ID verifications. He also shares how Trust Payments goes a step further by sharing data on popular fraud prevention parameters with their clients, allowing them to tailor their settings to their liking, therefore promoting an ecosystem of collaborative security and innovation.

Sukhi emphasises the critical role of compliance in safeguarding businesses and underscores the need to maintain security while pursuing innovation. She mentions the availability of consultancy services and tools that reduce manual intervention and human errors. These partnerships enable companies to cut costs and lower fraud rates, ultimately delivering more value to customers. Sukhi also highlights the importance of collaboration with regulators to navigate the legal framework and risks within the market, particularly in frontier markets. Recognising that many regulators in these regions cannot fully address the industry’s needs, she advocates for the industry’s engagement with governments and international bodies to bolster resources and foster a more secure and innovative environment.

What key steps or strategies are in place to improve financial inclusion?

Sukhi shed light on the steps taken to enhance financial inclusion, particularly in less developed markets. AZA Finance takes a comprehensive approach when entering new markets. They diligently study each partner’s tools and APIs, aiming to integrate with various financial providers, including banks, cash providers, and wallet services, based on the prevailing market preferences. What sets this approach apart is the recognition that in less developed markets, these APIs and tools are different from those found in more mature and open banking environments. In these frontier markets, the technical infrastructure may be less developed.

To bridge this gap and ensure financial inclusion, AZA Finance takes the initiative to engage with local staff and service providers. They establish a presence on the ground, engage in regulatory compliance, and establish connections with these providers to grasp how payments can be made into the preferred receiving methods of local consumers. By doing so, they consolidate these solutions and make them accessible to their business partners. This approach alleviates the need for each business to navigate the complexities of each market individually, ultimately contributing to the broader goal of financial inclusion. In essence, AZA Finance’s strategy exemplifies the importance of adaptability and personalised engagement in expanding financial access to underserved populations.

Richard also shared his ideas, where one strategy entails integrating the ability to manage all financial transactions within digital wallets. This means individuals can use their wallets not only for sending and receiving money but also for tasks such as paying bills and buying groceries. By interweaving money transfers into the fabric of these everyday financial activities, financial inclusion can be significantly enhanced.

One case study is of Safaricom in Africa, which initiated a journey towards financial inclusion by offering various financial services through its mobile platform. This successful model has since been adopted by various countries, not only in Africa but also in South America and Asia, contributing to broader financial accessibility.

While substantial progress has been made, there are still challenges in some regions due to varying levels of technology adoption and industry-player cooperation. In some cases, governments are actively engaging in discussions around fintech to boost financial inclusion. An intriguing example shared by Richard was the Turkish post office’s response to recent earthquakes. They swiftly set up booths in the affected areas to provide financial services, illustrating how financial inclusion can take different forms depending on each country’s unique circumstances and needs. The pursuit of financial inclusion remains a dynamic and evolving journey, tailored to diverse contexts and constantly adapting to better serve communities worldwide.

What opportunities are there for new players entering the remittances or payments market?

Adaptability is key for survival and success. Technology providers and fintech-based payment providers play a pivotal role in facilitating businesses of all sizes. These entities can assist not only in embracing the latest technologies but also in deploying effective marketing strategies to propel growth.

Partnerships are another avenue for newcomers to explore. Wayne highlights how Trust Payments, for instance, collaborates with various providers, including compliance, regulatory, and remittance as a service platform. These partnerships bring expertise to the table, allowing merchants to establish themselves more swiftly and efficiently than they might expect.

The success of new entrants in this competitive industry depends on having the right team and partners to expedite growth and expansion. 

What next? 

At RemitONE, our commitment is to provide you with cutting-edge technology, compliance solutions, and expert guidance to navigate the ever-evolving landscape of remittances. Whether you’re just starting out or looking to scale your business, we’ve got you covered.

Want to see how RemitONE can elevate your business? book a free consultation with our experts today!

Innovation in Payments and Remittances (IPR) Awards | Finalists Announced!

We are thrilled to announce our finalists for this year’s IPR Awards. The IPR Awards is a prestigious event celebrating the exceptional achievements of the money transfer community’s best and brightest.

This year, we introduced six unique award categories including:

• Innovation Award
• Exceptional Customer Experience Award
• Social Impact Award
• Start-Up of the Year
• Scale-Up of the Year
• Leader of the Year

IPR Award Ceremony

Join us for our awards ceremony on Tuesday 26 September during IPR Global 2023, London, UK! Get ready for an amazing evening as we announce the winners of our esteemed awards. Enjoy a relaxed standing reception with delicious drinks and tasty canapés. The highlight of the night will be the award presentations at 7pm.

Don’t miss out on this special opportunity to celebrate excellence and network with industry leaders. Secure your ticket before our early bird discount ends this Thursday 31st August 2023!

Visit: https://global2023.ipr-events.com/register

Congratulations to all the shortlisted companies and individuals

Innovation Award

• Commercial Bank of Ceylon PLC
• Currencycloud
• Daytona
• Hub Remit Pvt. Ltd
• Sikoia
• TerraPay

Exceptional Customer Experience Award

• Commercial Bank of Ceylon PLC
• PayInc Group Limited t/a PayAngel
• TerraPay
• Trust Payments
• Unity Link

Leader of the Year

• Jones Amegbor – Founder and CEO – PayInc Group
• Ani Sane – Co-founder & Chief Business Officer – TerraPay

Scale-Up of the Year

• Clear Junction
• Remit Choice Limited
• Samsara Remit

Social Impact Award

• HelloPaisa
• NOW Money
• PayInc Group Limited t/a PayAngel

Start-Up of the Year

• LolliCash LLC
• PayOnlime
• UMBRELLA CONSULTANTS LTD T/A BROLLIE

Once again congratulations to all the winners and we look forward to welcoming you to the IPR event.

Register: https://global2023.ipr-events.com/register

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: