The remittance industry is experiencing intensified competition due to downward pressure on fees, the entry of innovative competitors and an increase in expectations for quality services. The very nature of the remittance landscape requires organisations to significantly differentiate their offerings to maintain and grow their market share.
In order to foster deeper connections with clients, remittance companies are now diversifying their offerings well beyond traditional services. This strategic expansion not only increases customer “stickiness” but also enhances the overall value provided to customers. By integrating additional financial products and personalised services, a more comprehensive solution that appeals to a broader client base can be made available.
Integrating alternative financial solutions
Leading remittance companies are now bundling traditional remittance services with a variety of financial products including lending services like FelixPago, digital wallets and remittance tailored payment cards, like Wise. This approach not only retains the customer’s funds within the ecosystem, fueling consumer usage, but also positions them as a multi-service provider, which is crucial for customer retention in a competitive market.
By actively customising their services to better meet the distinct demands of local markets and specific customer segments, remittance companies are using modern technology to prioritise both relevance and customer satisfaction. Such adaptations include offering specialised financial products, such as Mukuru’s funeral insurance tailored for African markets or Rewire in the Philippines, which facilitates joint bank accounts for families dispersed across different continents.
In addition to this, some are expanding into non-financial services by diversifying into shopping-related services and creating online marketplaces such as PuntoPago, that cater comprehensively to their clients’ needs. To increase accessibility, modern day remittance companies are also reaching out to the unbanked or underbanked populations with solutions like mobile app-linked kiosks, like that of GoTyme Bank, that simplify account and card service processes. These targeted efforts help remittance companies deliver a more personalised and inclusive service experience. This process can be closely linked with rewards and loyalty programmes that provide tangible benefits based on real-time user data.
For high-performing remittance companies, digitalisation plays a key role in transforming their offerings, in-line with meeting modern demands. By incorporating enhanced online management tools to facilitate features like transfer status trackers, exchange rate alerts and integrated bill payment services, consumers feel more in control of their finances, leading to a sense of security and ownership. Additionally, the holistic integration of external platforms, such as WhatsApp or QuickBooks, the offering becomes more appealing to users, which in turn drives usage rates. These digital advancements enable customers to conduct and manage their transactions effortlessly and via a single key.
Paymentology stands at the forefront of this transformation, providing remittance companies with robust solutions tailored to the demands of a digital-first world. Our platform supports issuers by offering payment infrastructure solutions that includes digital wallets, multi-currency virtual or physical payment cards and advanced management tools. These features ensure seamless transactions while giving clients the flexibility to offer tailored financial products and rewards programmes that resonate with their customers’ unique needs.
For more insights into the way embedded finance is transforming the remittance industry, download the full report The Remittance Revolution: How to Win in Cross-Border Money Movement in the 2020s and beyond.
Why choose us?
Paymentology is a next-generation global issuer-processor. We give banks, fintechs and telcos the technology, team and experience to easily issue and process any type of physical or virtual card; debit, prepaid, credit, BNPL, revolving and more. Anywhere in the world, rapidly and at scale.
Our superior multi-cloud platform offering both shared and dedicated processing instances, vast global presence and richer real-time data set us apart as the leader in payments. Our payments experts bring deep, local market knowledge on the ground in 60 countries, across 14 time zones, guaranteeing 24/7 support. We are deeply committed to increasing financial inclusion worldwide and to positively impacting the communities in which we operate.
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