- The Philippines is a huge remittance market because of the Filipino diaspora in the United States and other parts of the world
- Recipients to get Php 1.00 to Php 2.00 more for every American dollar sent to them
- LumoXchange’s CEO says that Filipinos can save up to 30% because of their exchange rates
American fintech company LumoXchange just launched its payment services in the Philippines, one of the largest remittance markets in the world. Filipinos overseas sent a whopping $2.35 billion home in April 2018 alone making LumoXchange’s entry into the country a good opportunity for growth. It’s not just Filipinos who work and live abroad who will benefit from the service though because funds are also sent outside the country to fund Filipinos studying in other parts of the world. LumoXchange executives told reporters after the announcement that their service in the country includes exchange rate comparison from the country’s leading banks noting that the service can help Filipinos get P1 to P2 more for every US dollar. LumoXchange added that this can mean savings of up to 30%.
A good understanding of the market
LumoXchange CEO and Founder Maf Sonko understands the need for affordable international money transfers especially for recipients who live in emerging economies such as the Philippines. Sonko says: “It is not just money you are sending home…it’s love. We find you the best exchange rates so you can share more of your love. Now you can send more with less.”
Joshua Ang Price, the company’s Director of Marketing and Growth who also happens to be a second generation Filipino-American said: “My family regularly sends funds to our relatives in the Philippines, and I’ve seen first-hand how much money is lost in exchange rate conversion. Although there are websites that compare exchange rates, no company has been able to combine the comparing of rates locally in the Philippines and send money on the same platform until now.”
Competitive rates
LumoXchange’s platform will also encourage banks to offer competitive exchange rates. This development also comes with a range of options for recipients because funds can now be transferred straight to their accounts or can be made available for pick up. Among the brand’s early supporters is the Development Bank of the Philippines, according to a Business Wire report.
In a statement, DBP executive George Inocencio said: “DBP is pleased to work closely with LumoXchange to offer the best possible value to our mutual customers in a transparent, convenient, and secure platform. We believe our kababayans (countrymen) will be delighted when they see DBP’s Peso exchange rate in LumoXchange’s platform. DBP completes the transfer chain by providing remittance access to any bank account in the Philippines, and to thousands of cash outlets nationwide.”
The Arkansas-based payments company has already signed partnership agreements with Landbank of the Philippines, a government-owned financial institution and Banco de Oro (BDO).
Take a look at this link to get more information about cross-border payments and remittance services around the world.
