Fintech firm opens PHL-Canada remittance channel
FINANCIAL technology (fintech) player Telcoin Pte. Ltd. recently launched a digital remittance window—which leverages on its blockchain-supported platform—between Canada and the Philippines.
Telcoin teamed up with GCash, which is operated by Globe Fintech Innovations Inc. (Mynt), in offering the service. The mobile wallet service provider has more than 33 million users in the Philippines.
“The opening of Telcoin’s inaugural remittance corridor marks the company’s first step toward offering users a suite of digital financial products leveraging blockchain technology and digital assets,” the fintech firm said in a recent media statement.
Telcoin said it is aiming to offer lower cost for international money transfers by transacting through mobile money providers.
Citing data from Global System for Mobile Communications Association, the fintech player noted there are over 1 billion active mobile money accounts across 95 countries, with annual remittance value of $7.3 billion.
Telcoin is targeting to charge 2.5 percent or less to complete remittance transaction using any mobile device, which is lower than the 7-percent global average cost. For the fourth quarter of last year, World Bank reported that the average cost of money transfers from Canada to the Philippines was 4.92 percent.
“Telcoin’s strategy of direct connections with telecom and mobile money partners will enable us to rapidly scale, keep costs low, and ensure the health and safety of our users thanks to the contactless nature of transacting on mobile and not at a physical shop,” Paul Neuner, the fintech company’s CEO, said.
Filipinos receive approximately $2.8-billion worth of remittances from Canada annually, the company said.
Based in Singapore, Telcoin is licensed as a major payment institution. This, in addition to being registered as a money service business in Canada and Australia.
Employing compliance-first approach when penetrating new markets, the firm is in the process of securing approval from central banks for its remittance services in other jurisdictions.
“We intend to become a household name in the Philippines, putting more money back in our users’ pockets when they need it most,” Neuner was quoted in the statement as saying.
Apart from GCash, the fintech company also has collaboration with other electronic wallet service platforms in Africa and Asia.