Remittance Service

 

Overview

 

hyperWALLET has launched hyperREMIT, the world’s first SMS based global remittance service.

 

This service is aimed at supporting the overseas, foreign and migrant worker communities who have long had to endure exploitatively high fees, poor service and the constant stream of opportunistic startups trying to take a slice of this 100B+ market.

 

 

What remittance options exist today for foreign workers?

 

The various remittance options offered in the selected remittance corridor market are presented on the World Bank site. This shows the type of company, speed of service, fees, FX margin and send/receive options.

 

What is really noticeable is this site highlights the issues faced by foreign workers when performing the critical task of sending money home:

 

Global money transfer operators: have a very limited service, namely cash-to-cash. The service is very expensive. Banks: offer bank deposit, but similar in cost to sending a wire. Local MTO providers:priced more competitively than the global companies, but the service is essentially the same.

 

 

Challenges for traditional remittance operators

 

Typical constraints

 

Put simply, no company has applied any creativity to making the service easier to use, improving the coverage and reducing the cost. 

 

• Cost: According to the World Bank, average cost in Canada to send a P2P Cross border remittance is 12%. On a median $300 personal remittance that’s $36, yet it costs a flat $1.50 to send P2P transfer domestically in Canada for values up to $10,000. 
  
  
• World Bank target: Services are available from a variety of competitive bank and non-bank providers, although the averages still don’t come close to the World Bank target for remittance pricing @ <5%. 
  
  
• Business models: Global MTO’s are constrained by their agent model, and the banks are simply not capable of sending money around the world outside their existing correspondent relationships.

 

	Settlement Type	Western Union, MoneyGram	Local Banks	Local MTO		Current Providers
Send Options	Debit/Credit Card	Yes	Yes	No	Coming	Differ by country Market typically comprised of global money transfer companies like Western Union and MoneyGram with expansive agent networks. In any given country, local banks also provide remittance services, but it tends to be a very expensive bank-to-bank offering. A number of non-bank operators exist which tend to be cheaper than global MTOs and local banks, but they tend to only offer Cash Pickup and Cash Delivery services.
	Bank Debit	No	Yes	No	Yes
	Bank Bill-Pay	No	No	No	Yes
	Cash	Yes	Yes	Yes	Partner
Receive Options	Cash Pickup	Yes	No	Yes	Yes
	Cash Delivery	Yes	No	Yes	Yes
	Bank Deposit	No	Yes	No	Yes
	Mobile Money	Some	No	No	Yes
	Airtime Top-Ups	No	No	No	Yes
Channel	Online	Yes	Yes	No	Yes
	Agent	Yes	No	Yes	Partner
	SMS	No	No	No	Yes
Price		High	High	Medium	Low

 

 

The downsides of Cash-to-Cash payments

 

Convenience, speed, trust and price are the primary service drivers of remittances. Unfortunately, cash-to-cash transactions are becoming difficult for families, and they are expensive and risky for recipients.

 

For example, if the beneficiary does not reside near an agent location, then the home delivery is often preferred; however, this service is becoming unpopular with increased courier robberies, and murders and break-ins at the recipient's home.

The community needs new, more secure payment options.

 

 

hyperWALLET's investment in the sector

 

	hyperWALLET's "hyperREMIT" remittance service >

 

Remittance services need technology

 

hyperWALLET has spent 10 years investing in the platform and network to bring our game-changing service to market.

By integrating to the ‘in-country ACH networks’ around the world, hyperWALLET can clear payments locally, resulting in a significant reduction in costs.

hyperWALLET has also integrated the platform with a range of other ‘non-cash’ local settlement options. This offers increased coverage across the Philippines via Smart Money and Mobile Airtime Top-Ups.

 

In addition we have integration planned to the KO-OP’s which represent approximately 40% of the population. This is especially important to reduce the need for cash remittance outside metropolitan areas.

 

 

Benefits for Senders and Recipients

 

hyperWALLET's payment network provides coverage and increases non-cash options. Our payment platform provides convenience for both the sender and recipient:

 

Senders: No more heading down to the bank, withdrawing cash, taking a bus across town in the rain and paying 10% in fees and spread to send the money home.

Recipients: No more being followed home having just picked up the cash, being put at risk for robbery or break-ins.

 

 

What makes hyperWALLET different?

 

hyperWALLET's remittance services are a superset of all the other providers, delivered through a convenient mobile channel and at a fraction of the price, which pays back 30% of the revenue to the community through the referral program.

 

Price	Convenience	Speed	Options	Transparency	Referrals
• Remittance fees from just $6.00 per transfer   • Breaks World Bank targets (fees and FX margin being less than 5% of the transaction value).	• Mobile SMS / Phone agent-based   • Mobile remittances mean no more lengthy trips across town to find nearest agent, or having to physically withdraw cash from bank.   • Sender's bank account debits preauthorized as part of signup process.    • SMS text mesages (“send 500 CAN mom”) result in hyperWALLET debiting remitter's bank account with $500 CAN + $6 fee.	• Remittances available within 30 mins or same day.*	• Bank Deposit   • Cash Delivery   • Cash Pickup   • SMART Money   • Airtime Loads	• Parties notified by SMS and email of the transfer.   • A simple call to support will verify the payment.	• Only agentless remittance service which incentivizes community through a remittance-based referral program.

*Given constraints on bank hours, processing, and remittance option used.