Digital Remittance: A Technology Transforming the Process of Online Transaction

Digital remittance is defined as the domestic or international online money transaction from one person to another. The emergence of digital remittances was already underway when the pandemic hit, but the growth was propelled even faster by the implementation of isolation measures, border closures, and lockdowns. 

A report published by Allied Market Research on the digital remittance market states that the industry is expected to display a notable CAGR of 16.3% throughout the forecast timeframe. The industry is expanding rapidly due to a rising adoption of smartphones, widespread internet connectivity, an increasing migrant population and the demand for international money transfers, and advancements in digital payment and fintech. 

Advantages of digital remittance for B2B:

Readily trackable: Both merchants and customers have convenient access to payment information, with payment details securely stored in merchant-specific databases. This practice eliminates any potential ambiguity and confusion when it comes to tracking payments, ensuring that the location of the money is always clear and accessible.

Save processing fees: Several payment methods often involve fees and associated expenses, notably paper checks. One of the advantages of digital remittance is that many solutions offer fixed fees, facilitating improved financial planning, and enabling businesses to select the model that aligns best with their requirements. Some B2B digital remittance platforms even eliminate transaction fees by adopting a payments-as-a-service model.

Reduced risk: Digital B2B remittances offer enhanced security compared to traditional methods. They work through secure gateways that are difficult to manipulate, and the majority of platforms are subject to regulation and employ safeguards to ensure the safety of funds.

Recent developments in the global digital remittance industry:

TNG Digital collaborated with Tranglo on 7 August 2023 to expand its remittance offerings

TNG Digital, a company based in Malaysia and the owner and operator of the Touch 'n Go eWallet, entered a partnership with the cross-border payment hub, Tranglo. This strategic collaboration aims to empower TNG Digital in expanding its cross-border remittance services. In pursuit of this goal, the Malaysian fintech company is set to utilize Tranglo's extensive network and infrastructure. This will enable customers to conveniently send funds from GOremit through the Touch 'n Go eWallet to recipients in ten countries, including Sri Lanka, Pakistan, Nepal, India, Bangladesh, Vietnam, Thailand, Singapore, the Philippines, and Indonesia. 

In response to the recent announcement, a representative from Tranglo expressed their satisfaction and enthusiasm for enhancing the remittance choices within the Touch 'n Go eWallet by integrating their last-mile delivery solution. They indicated that the ten countries chosen for sending remittances are prime corridors with reliable and secure payment channels. Additionally, they clarified that their API would autonomously determine the most optimal payout methods and connections to facilitate instant transactions.

Esewa Money Transfer continues its efforts with "Mero Digital Desh" to promote digital remittance services

Esewa Money Transfer, a prominent digital remittance company in Nepal, has revealed its ongoing commitment to the "Mero Digital Desh" initiative. Under the guidance of Fintech company F1Soft Group, the remittance service company is utilizing this initiative to encourage formal remittance and educate individuals about the benefits of using digital channels for sending money.

The company held a press conference to announce the initiation of the 'Win Your Dream Home' campaign. This campaign is the result of an agreement between Esewa Money Transfer and eSewa. It is scheduled to commence on Monday and will continue for the next 10 months, ending on July 16, 2024.

Subash Sharma, the director of F1Soft Group, shared insights about the initiative, emphasizing that it symbolizes gratitude for the hard work and sacrifices made by Nepalese individuals working overseas. He highlighted that the ultimate goal for many Nepalese working abroad is to construct a home in Kathmandu, and through this campaign, they aim to make that dream a reality for at least one person.

 

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