Accelerating revenue for the remittance market
Strategies to increase flexibility and streamline money transfers
Introduction
The global remittance market has seen steady growth in recent years, with almost $800 billion sent globally in 2022 alone. To date remittances account for 15% of GDP for 25 low- and middle-income countries and are an essential source of income for millions of families around the world, as the demand for faster and more seamless payment experiences is increasing.
The process of remitting money may seem simple, requiring money transfer businesses to only focus on four essential factors: funding, payout, compliance, and foreign exchange. However, the global payment system is highly intricate and lacks uniformity among countries in terms of payment methods,
currency, and compliance regulations. As a result, money transfer businesses bear the responsibility of managing and adapting to the complexities of this multifaceted industry.
To stay competitive in the market, remittance companies need to focus on providing convenient, secure, and
affordable payment options to their customers while staying fully compliant with the local regulations. In this report, we will explore 3 strategies that remittance companies can implement to provide a seamless payment experience to their customers, while accelerating their growth.
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1. Offer more pay-in options
The pay-in page is a crucial part of transferring funds online, and it should be easy to use, tailored to the customer’s language, currency, and most importantly – their preferred payment method. As customer preferences shift towards faster and simpler experience, the popularity of alternative payment methods is growing, and it is often linked to the convenience of using mobile phones.
This shift has significantly impacted remittances, and money transfer businesses must now adapt to offer their customers payment methods that they are familiar with, depending on their location. For example, while card rails are still widely used in the US, mobile wallets such as Apple Pay and
Samsung Pay are becoming increasingly popular. In the Netherlands, the inter-bank system iDeal is the preferred method, while in China, WeChat and AliPay dominate. Local payment methods are closely tied to foreign exchange services, where pay-ins and pay-outs occur in the sender and recipient’s local currency.
Nuvei provides remittance businesses with an extensive range of pay-in capabilities. Our options include not only traditional cards and ACH, but also over 600 alternative payment methods – such as UPI in India, Pix in Brazil and a variety of e-wallets in APAC, US and EMEA - which is more than any other payment provider in the market can offer. With local acquiring in 46 markets
across the world, you can accept funding from over 200 countries, while offering all the funding options your customers prefer in each key market.
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2. Deliver fast and reliable payouts
Prioritize speed of transactions
One of the key factors that determine whether customers will use a money transfer service or not is the speed and security of accessing their funds when they receive a transfer. This is especially important in countries with underdeveloped payment networks, as customers are forced to wait for several days to receive their money. Providing transfer recipients with instant and near-instant payout options will ensure that they can access their funds quickly as well as increase the success rates of your money transfer business.
North America sees fastest transfers to Latam, Africa and Asia
Most common transfer speeds sending from North America
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Offer convenient payout options
In addition to the wellknown SWIFT, the major card networks have also been developing faster and more innovative ways to facilitate cross-border money transfers using their card rails. Solutions such as Visa
Direct and Mastercard Send aim to deliver fast, seamless and transparent cross-border money transfers. In addition, there are several e-wallets (such as PayPal, AliPay, Paytm and more) available that support multiple use cases in the cross-border remittance space. Enabling these
payment methods through a leading PSP will provide your customers with an instant or near-instant and cost-effective way of sending and receiving transfers abroad, with the added benefit of funds receipt acknowledgment.
200+
P2P programmes globally
$1.2T+
Cross-border opportunity
160+ Countries enabled for cross-border delivery
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3. Make cross-border payments faster, safer and cheaper
The ultimate pain points of the remittance market remain hidden costs, slow processing times, and the risk of fraud. The average cost of a money transfer stands at 6.5%, where FX margins can take up to a half of the processing fee. Many consumers aren’t aware of the additional fees.
For example, only 18% of Americans correctly identified the exchange rates as one of the costs, while 55% claimed they understood the costs of cross-border payments. To avoid drop-offs and customer dissatisfaction, it is paramount
for money transfer businesses to implement built-in explicit pricing with full transparency on incurring transfer costs.
Automating the process of KYC (Know Your Customer) can also help reduce the cost and time associated with remittance reviews. This can be achieved by leveraging technology such as artificial intelligence and machine learning to automate the process of verifying the sender’s and recipient’s identities and ensuring compliance with anti-money laundering and counterterrorism financing regulations.
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Why choose Nuvei for your Remittance
Business?
20 years’ experience
Designing payment experiences that truly accelerate our customers’ business.
Globally connected Industry leading acceptance rates
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Payment
technology so cutting edge you’d think it was from the future
Acquirer agnostic, global gateway and technology
Deliver innovative pay-in and payout experiences designed to keep your customers coming back.
Servicing over 200 markets worldwide
600+ local andalternative payment methods
A complete range of payout methods
Fully localizable
Transparent pricing for local and international payment methods
Unified reporting, transaction data and analytics across all service providers
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ABOUT NUVEI
Nuvei (Nasdaq: NVEI) (TSX: NVEI) is the Canadian fintech company accelerating the business of clients around the world. Nuvei’s modular, flexible and scalable technology allows leading companies to accept next-gen payments, offer all payout options and benefit from card issuing, banking, risk and fraud management services. Connecting businesses to their customers in more than 200 markets, with local acquiring in 46 markets, 150 currencies and more than 600 alternative payment methods, Nuvei provides the technology and insights for customers and partners to succeed locally and globally with one integration.
For more information, visit https://nuvei.com/
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