The Human Touch: Why Remittance is More than Just a Payment

When it comes to payments, people are typically concerned with two things: what they’re paying for and how quickly they can complete the transaction.

Online shoppers, for instance, just want to get through the checkout page as quickly as possible without really thinking about it. But the motivation behind purchasing grill tongs on Amazon is very different than the feeling a human being gets when sending money to a loved one in a different country. Invisible payments might be all the rage right now, but that’s not necessarily the case with remittance.

The act of transferring personal funds across borders carries a deep emotional significance for immigrants who may have risked everything to move to the U.S., as well as their family members back home who rely on that money. It doesn’t matter whether it’s money to help with an emergency or pay time-sensitive bills — the process needs to be fast, it needs to provide a sense of safety and it needs to be visible.

By swapping out a nearly invisible payment process with the fast, high-touch experience first-generation immigrants are looking for, businesses can capitalize on a growing remittance market.

Today, migrant workers from the Caribbean and Latin America are sending more money back home than ever before. Businesses can count on frequent senders to continue transferring money, regardless of political or environmental turmoil. For some companies, more than three-fourths of their transaction volume comes from recurring customers. It’s clear the demand for global money transfers, and the right solutions to power them, is very high.

Here are four ways to transform international money transfer into an experience senders won’t soon forget.

• Transparent pricing. To help cultivate a culture of transparency, be totally open about how much you’re charging. It seems simple, but don’t hit your customers with hidden fees. Pricing is certainly complicated — factoring in amount, channel and exchange rates, for example. But, standing out among dozens of available money transfer solutions requires an honest, straightforward approach to pricing.

• High speed transfers. Those on the receiving end of money transfers don’t have time to spare. In many cases, a person’s livelihood depends on that money. So, make sure your remittance solution is optimized for mobile. By enabling users to complete a transfer in less than 30 seconds and pay with any U.S. debit card, mobile apps provide a necessary degree of speed and convenience. Going through ACH, for example, regularly takes more than four days to send funds. Too long.
• International pickup options. While mobile apps like Venmo or Square Cash are good at getting domestic recipients cash fast, the market for international transfers is still dominated by incumbent FIs with inconvenient user experiences. In addition to transferring money directly to debit cards or bank accounts, people often need to send funds to one of thousands of pickup locations. By investing in and solving the complexities of handling cash, you can reach a broader customer base – including those without a reliable internet connection or access to a traditional bank.
• Referral rewards. These programs can go a long way toward making cross-border money transfers more appealing. Unlike wire transfers – which can cost up to $35 – mobile solutions that include referral programs promise to put money back in the pockets of senders and receivers. Rather than paying hefty transfer fees, customers can supplement their next remittance with money earned through referrals. It’s a win-win for all.

From covering bills to buying groceries, there are innovative payments companies doing very well at making that part of the customer experience minimal and invisible. However, with remittance the payment is the product, and the customer experience must appropriately adjust. The experience needs to be visible and comforting without being a hassle. Solve for that, and you’ll make customers for life.

About the author

Josh Gordon-Blake is the VP of Global Partnerships at Pangea Money Transfer, a Chicago-based international money transfer app, where he manages a team of professionals who develop and cultivate relationships with banks, processors, startups, foreign exchange houses, mobile wallets and retailers to expand Pangea and move money effortlessly throughout the world.