A Singapore based financial technology start-up has launched a new remittance service it claims will make it the Airbnb of global payments. So how does it work?
Established by seasoned industry professionals and led by Atul Garg, Principal Founder and CEO, SingX is promising a cheaper, faster and more transparent experience.
Pricing is where the firm sees their biggest differential compared to the traditional remittance methodology of using the banking system or a money transfer service. SingX clients will only pay a transaction fee of 0.5 percent.
There is no upper or lower limit for transactions and the firm is building pools of currencies in its two initial places of business, Singapore and India.
As it rolls out its offering to Hong Kong, Malaysia and Australia, where it already has licenses, the plan is to do the same in each location.
From The Ground Up
SingX built its own propriety software platform, for which the founder says there have already been enquiries to acquire.
At present the company employs 15 in Singapore with a further 5 in India. Former DBS Managing Directors's Rajan Raju and Edwin Khoo also serve as advisors.
Garg is no stranger to the business, he brings over 25 years of expertise having spent most of his career with American Express and Bank of America. Prior to launching SingX he was Amex's Group General Manager managing Amex's payment franchises in Korea and India.
A $30 Trillion Business
«We are targeting consumers and SMEs, the segments we believe are underserved and are paying the highest rates for remittances. SingX’s technology can provide them with a smarter way of moving their funds, swiftly, smoothly and cheaply. They will no longer need to queue up at bank branches or fill up forms,» said Garg.
A 2016 report by the Boston Consulting Group commissioned by the Society for Worldwide Interbank Financial Telecommunication, estimates cross border payments at $30 trillion and growing at 10 percent. The estimated revenues from cross border payments are $300 billion.
Alibaba A Player
Ubiquitous billionaire Jack Ma also likes the remittance business and clearly sees a large opportunity centred around Asia's growth.
finews.asia reported recently that the Alibaba Group's affiliate company, Ant Financial agreed to buy a U.S. money transfer service provider MoneyGram in a cash deal worth $880 million.
