It’s no secret that we’ve been working hard on some major developments in Southeast Asia. Recently, we announced our partnership with Telin Malaysia and to build on that momentum, we’re excited to announce a partnership with the leading Vietnamese mobile wallet, Vimo. Our partnership will introduce the fastest and most affordable option for the $1 billion Canada-Vietnam corridor. To be specific, Telcoin users in Vietnam will be able to accept inbound international remittances from Canada (in CAD) and cash out to their Vimo digital wallet balance (in VND).
Telcoin and VIMO’s synergy will change the way many Vietnamese receive money. Currently, an average $200 CAD remittance would cost a whopping 7.25%. Our collaboration targets 1 to 2.5%, meaning that more of the sender’s hard-earned cash will end up in the pockets of their loved ones or any Vietnamese receiver. Vimo also recently announced a merger with mPOS expanding their presence in 11 cities across Vietnam, and providing accessibility in more than 35,000 acceptance points. Using the Telcoin app to send remittances from Canada to Vietnam, users will avoid an eye-gouging fee and a trip to the nearest money remitter that would likely cost a significant amount of time. By leveraging the power of blockchain technology, Telcoin transactions will be processed immediately, 24/7. The whole process will be as simple as sending a text message.
As reported by the World Bank in 2017, personal remittances in Vietnam reached up to $13.8 billion. This year alone, that figure has increased by $2 billion, placing Vietnam in the top 10 receiving countries for international remittances. The following excerpt from a Vietnam News report stresses the need for technologies like Telcoin to enter the market:
“The global average cost of sending $200 remained high at 6.9 per cent in the third quarter of 2018. Even with technological advances, remittance fees remain too high, opening up markets to competition and promoting the use of low-cost technologies will ease the burden on poorer customers,” said Mahmoud Mohieldin, World Bank Group’s Senior Vice President for the 2030 Development Agenda, UN Relations, and Partnerships. — VNS
Prime Minister Nguyen Xuan Phuc is trying to lead the country into the modern era of digital payments. He hopes that technologies like Telcoin and Vimo will reduce the amount of U.S. dollars circulating while establishing the dominance of the Vietnamese dong. That means encouraging Vietnamese households to adopt digital payments rather than carrying around piles of cash and bullion.
In addition to Canada, we plan to expand inbound remittance services to additional corridors in the near future. More than 1 million active Vimo wallets will be able to use their VND for P2P transfers, bill payment, ecommerce payment, mobile top-up, and bank deposits and withdrawals.