With large numbers of migrants arriving in the West that send money home to families, it makes sense that money transfer companies would seek them as customers. Yet, outside of the major and well established money transfer companies, such as Western Union, companies focused on remittances have by and large ignored this demographic. In the past few weeks, however, we have started to see a shift in the money transfer industry, with more companies seeking an audience with the many migrants who send financial assistance home.
Companies Seek an Ignored Audience
In November 2016, Singapore based start-up Toast received 1.5 million USD in a “pre-Series A” round. Toast’s mission is to help those sending money home to family, particularly those sending money to the Philippines. Of note is Toast’s targeting of the Android market, rather than the iPhone market. Given that Android phones are still a large part of the mobile market, it seems a logical conclusion to focus on a remittance app for Android users, a demographic which has largely been overlooked as start-ups choose to focus on design and ease of app use. Toast is currently active in Hong Kong and the Philippines, and processes almost 1 million USD in transfers a month.
Up for the Challenge
UK based company Lebara is another good example of money transfer providers focusing on the migrant community. Lebara’s money transfer service is specifically designed for customers sending financial assistance to families outside of the UK. Lebara started as an international telephone service and already has name recognition within the migrant community. Last year, Lebara launched their money transfer service, designed specifically with this key demographic in mind. Though many believe remittance services for migrants are well served, Lebara’s well established presence in the community as a telecom provider will likely give them an edge over other established competitors.
