The remittance industry can be disrupted in many different ways. WorldRemit is using a very interesting approach to achieve this goal. By partnering with Alipay, they aim to make sending money a lot more convenient.
Sending Money Remains Cumbersome
Despite dozens of companies offering remittance solutions, the processes have not changed much. It remains a very cumbersome process in general. Money can be sent online, but there are very stringent verification procedures in place. Sending money in person requires travel, waiting lines, dealing with people, and so forth.
Finding a solution suited for the modern age will be a core challenge. WorldRemit has been pondering this concept for quite some time now. The modern age requires a very different approach to sending and receiving money. People prefer using existing applications and solutions, rather than sign up for something new entirely.
Rather than looking at its internal model, the company forges an external partnership. That partner comes in the form of Alipay. It is a very popular platform and mobile solution across Asia already. That continent remains one of the biggest regions for money transfers globally.
What This Means for Both Companies
Due to this partnership, a new era of remittance can be unlocked. WorldRemit users can perform cross-border transfers to the Alipay app. It is a new level of convenience and financial inclusion alike. WorldRemit aims to build a mobile-first international payments service. As such, choosing Alipay makes a lot of sense.
WorldRemirt’s APAC Managing Director Scott Eddington adds:
“With a significant Chinese migrant population in New Zealand and, over a million Australians having Chinese ancestry, China has the largest migrant population globally. China also has the highest mobile payment penetration globally, with 86% of China’s population making use of mobile payments in 2019. The World Bank estimates that Chinese diaspora sent home over $67 billion in remittances in 2018, so our mobile-first approach to digitising remittances through collaboration with Alipay, will deliver a mobile-to-mobile money transfer service that suits Chinese consumer behaviour.”
Working together with a remittance player is beneficial to Alipay as well. It gives the company an opportunity to leverage mobile and digital technology for financial services.