This article was first published on Insights – Ripple
The Asia-Pacific (APAC) region is seeing significant growth in remittances. However, due in part to the current challenges associated with moving money between currencies, this high growth in remittances is juxtaposed against the high average cost of sending money.
In order to effectively tap the dynamic regional market that drives a volume of nearly 2 billion remittance transactions per year, it’s important to have global reach with locally relevant service offerings.
Businesses looking to offer remittance services must meet recipients where they are—whether it’s money paid out to a mobile account or paid out to cash on a remote island. Though senders ultimately decide the remittance provider, the choice is highly influenced by what their receiver demands.
While rapid speed, high reliability and low cost are required to remain competitive, it’s locally relevant coverage and payout options that differentiate service providers. In the second part of our remittance series, we’ll explore what it takes to grow and win in APAC countries—specifically The Philippines, Thailand and Australia.
Current Remittance Solutions in APAC
In The Philippines, cash dominates. Even though the country recently launched a low-value, instant payment system that permits users to make digital payments to bank accounts, adoption remains stubbornly low and cash remains as the most critical payout option for remittances. Thus, service providers need to be plugged into the predominant outlets for cash payouts, notably including Cebuana Lhuillier and Palawan.
Similarly, cash transactions still represent a staggering 90% of Thailand’s domestic payments value. In contrast to The Philippines, though, the low-value, instant payment rail in Thailand has seen much higher penetration. PromptPay, launched in 2017, reached an average of 4.5 million transactions per day in under two years and attracted an impressive 49 million registered users. As a result, the volume of digital payments ...
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Insights – Ripple