Tech innovation has been rising steadily over the past decade. Today, there are numerous startups within the remittance industry. This is an industry showing great potential for anyone looking to venture into it. There’s clearly enough room for innovation and technology – everyone can participate. This is why we need to encourage technology, develop it, and invest in it. When it comes down to easy ways to send money, a money transfer app is one innovation that tops the list.
So, where is all the hype around technology coming from? How is it disrupting the global remittance industry? In this article, you will get a closer look at some of the areas in that technology is influencing remittance. The remittance industry is a multi-billion dollar one, and here’s how tech is making moves in it:
Money Transfer App Platforms
There are several money transfer apps right now that have thrived due to technology adoption in remittance. These payment innovations have made it easier for people to send and receive funds, no matter the time or location. They have surely made the world a global village when it comes down to remittance.
A comparative advantage that a money transfer app has over conventional means of remittance is the speed. Sending funds, whether locally or internationally, is faster with the use of a money transfer app. The costs are also lower when using such platforms because you can find typical charges being less than a dollar for a transaction. Initially, when sending money internationally using let’s say a bank, the waiting period could stretch to days. More days if you were sending funds out of the normal working/business days. This is no longer the case with the inception of a money transfer app.
Their distribution networks have been increasing rapidly over the years, and more of such apps have gained traction at the grassroots. Some even extended their services to more options such as cryptocurrency trading, online wallets, merchant services, and automated bank deposits, among many others. They also enable the user to connect to retail and ATM networks.
Through the use of Know Your Customer (KYC) and IDTech, technology has helped a lot in the fight against fraud. Cybercrime, we can all agree, is a major cause for alarm in the internet space. So many people have lost their money to scammers and fraudsters in the not-so-distant past. And this has affected the way people perceive online remittance tools. In fact, so many have become skeptical and fearful of platforms such as money transfer apps.
It is important for the financial technology industry to learn of ways on how to handle their customers and their personal information. This is the start of credibility and authenticity. Fraud control is one of the main issues that need impressive solutions to ensure that cybercrime is on the low. Even though fraudsters have kept on developing clever methods, it is expected that new counter-mechanisms such as KYC will help cut short their plans.
There’s been a rising need for digital agents – so much that many companies in the remittance industry have struggled to keep up. The use of digital agents will definitely help to cut down on the need for higher acquisition costs. Even though this is still in the inception stage, it is bound to become widespread very soon.
Cryptocurrency has been a hot topic these past months, as the prices of the major crypto tokens (Bitcoin and Ethereum) continue to skyrocket. Today, Bitcoin is worth more than precious metals such as Gold and Diamond. And every day, people are finding ways to make money in the crypto sector. It is no lie, therefore, to claim that cryptocurrency and blockchain technology both are disrupting the remittance industry.
Today, so many companies are accepting Bitcoin and other cryptocurrency tokens as payment systems. Also, some of the money transfer app platforms are giving their users the ability to purchase cryptocurrency tokens and send them. All this is going to blow up as a lot of people are continuing to show more interest in cryptocurrencies.
Blockchain technology has also made a significant progress path, especially with the birth of the metaverse. Within the metaverse, users will easily purchase digital assets via crypto and blockchain technology. How about that for digital remittance?
Price Comparison Tools
The use of technology to help clients make more informed decisions through the use of price comparison tools has equally disrupted the remittance industry. From forex spreads to fees, price comparison tools help the end-user in great ways. They are also ideal for company pricing strategies. These tools can also help businesses like money transfer app platforms to position themselves well.
Thus far, we hope that you have seen how technology is changing the remittance landscape. Some tools such as a money transfer app are priceless in this day and age. Embrace technology for the future.