The reason behind launching PaySend
PaySend is a smart cross-border platform to allow swift transfers via the ubiquitous digital payment token people learned to use and change the odds of cash-dominated remittance market.
Sending money means a lot to millions of people traversing the globe in search of purpose and commitment, whether it’s a place to live and escape insecurity, find a bright spot to contribute mentally and professionally — having a job, starting a family — but you are still grateful to the social circle that has put you on a path.
Sending money across the border is a pain: from those regions where the infrastructure require simple electronic tokens both to be available and redeemable for basic services and goods, to well-developed ones, where the advancement of financial networking overworks this into complex solutions requiring many components — IBANs, reference numbers etc.
This is hard to fathom provided how quick mobile internet connectivity turns disconnected population into online consumers (China is a good example that uses Web-commerce to connect rural areas with the economy output) and also teaching the users on the simplicity of accessing information — something that they start demanding from complex financial services.
Traditional financial institutions have also recently started to draw back from the field and cut their correspondence network due to increased oversight and compliance costs, raising fears that usual corridors for retail remittances will be cut short, while traditional remittance service providers were slow to adopt the digital language and heuristics demanded by growing number of highly mobile population.
In short the money transfer industry is ripe for change driven by:
- demographic and technological change, where Africa leapfrogs to use mobile and mobile Web, China powers the consumption through its globetrotting middle-class outfit with affordable smartphones;
- behavioural heuristics change, that is dictated by the same interconnectedness and constant availability of the web — contributing to new norms of accessing services and demanding the same approach from every other node people access;
- the drive for simplicity being met by increased compliance costs that drive optimisation programs of most banks and so squeeze the demand to new agents;
- The very compliance barrier turn a big majority of economic migrants away from obtaining an account, the very mechanism that powers most digital mediums for sending money, where cash-based “fall-back option” still meets digital users with complex fee structures and are in other ways disassociated from the de rigueur norms of sending money easy and fast.
These were the basis for thinking behind PaySend that we, an international team from world’s known payment and remittance services, started building in late 2015, where this service, as we saw, had to develop a distinct set of features:
- account for growing usage of mobile commerce services in both developed and developing markets — with the phone being a primary end-user platform
- address heightened compliance controls for cross-border remittances and try to reuse as much as possible;
- work in conjunction with existing players to keep costs down and deliver the savings to the end users;
- reuse the payment tokens that the vast majority of customers know how to use or can easily learn — and have rails to scale built in;
- build the know-how for instant payment and remittance token provisioning in emerging markets where there is no global remittance connectivity;
- be aware of emerging payment and remittance trends (ie BTC and Blockchain and blockchains-related activities by new agents) and see through how this infrastructure evolution can be embedded in future.
Card-to-card remittance was a natural protocol for us to try and emulate provided that:
- Payment schemes themselves are pushing these to compete with cash based operators;
- We had were the first in the world to successfully launch a successful remittance scheme using card to card rails in 2011, a business that is now tallied in USD billions in Russia and CIS, and so were happy to “replicate the knowledge internationally;
- The failure from success is divided by clear understanding of messaging parameters one would use for these operations, whether one can control the load on one processing system and whether one can create a convincing end-user proposition.
Henceforth, PaySend that we are about to premier at Finovate Europe is a robust remittance platform that utilise card to card messaging to allow quick and straightforward remittance services for a majority of users, where we would be working 24/7 to open as many core corridors to satisfy the demand and roll-out the system.
We are to work in close collaboration with issuing banks — and are already implementing our platform to connect several key corridors as part of our core strategy, seeing how important it is to them to control compliance risks, where they would keep the customers from escaping to independent agents they can’t control and lose revenue they would have gotten otherwise.
Where card may be discounted as a token for developed countries, for emerging regions with poor acceptance we would employ our proprietary card issuance and processing to allow OTA delivery of a card that can be used to land a remittance and so escape complex fee structures now present in certain mobile money schemes.
We are building a KYC process to manage compliance control for cross-border remittances and alleviate the concerns that stop banks from rushing to provide card-based remittances.
We are primed to reuse the technology, knowledge of the token that has been issued for years and so is known to banks in terms of provisioning, payment origination and transaction routing.
We are focused to bridge card technology with a simple and eloquent mobile app that will further prove the simplicity of sending money via card vs. other digital means.
Finally, we are to partner with existing financial service providers that will help to sustain a network effect and explain the benefits to existing cardholders while keeping the revenues for issuing banks.
The PaySend Team.