Grab Financial, Grab’s financial unit, is ready to bring the latest fintech service in the cross-border transfer sector or remittance at the beginning of next year. This product is claimed to be the first in Southeast Asia as a cross-border transfer wallet.
Another impact is, it reduces cash payment transaction significantly for tourist and business trips in Southeast Asia. Shopping on e-commerce is getting broader.
“We believe the remittance product will be a game-changer for millions of unbanked or underserved people in Southeast Asia. Grab Financial has a unique position to shorten the transfer process to those you love and fasten the financial inclusion in the region,” Reuben Lai, Grab Financial’s Senior Managing Director, in the official release.
Regarding business potential, Southeast Asia remittance market is estimated to reach US$70 billion by last year. It was dominated by MTO and financial institutions, however, many guest workers who are not sustainable economically depend on the unauthorized MTO agents.
Grab believes the industry is suffered from highly, unreasonable price structure, and inefficient transfer process resulting non-optimal user experience and potential of countless lost funds.
Lai commented on this result that Grab intends to resolve the issue by eliminating verification process (online only), making sure the money arrived on target, fixed rate, and to be used directly without early disbursed.
Customers can instantly and securely transfer money to the recipient in other country using GrabPay e-wallet. It’s considered unique among the current ways on the market.
He explained the recipient can choose to disburse fund through the cash-out point or using it for the daily transaction, such as paying for bills and balance top-up within the Grab app.
In terms of rate, customers will have complete transparency and visibility to all transactions, including forex and early administration fee.
Grab guarantees the recipient to not being charged with any additional fee for every fund received in the GrabPay account. The benefits aren’t present in the previous remittance service (MTO / Money Transfer Operator).
Regarding the business, DailySocial tried contacting Grab representative. The spokesperson avoids giving further statements.
“We’ll launch the remittance in early 2019, starting with Southeast Asia’s largest cross-country transfer channel, where there are lots of unsustainable workers. We’ll offer them a transparent, secure, and fast way to transfer their income to the family.”
Grab is ready to partner with governments in Southeast Asia on this initiative, which involves in ASEAN Smart Cities Network (ASCN). In Indonesia, cities involved as ASCN members are DKI Jakarta, Banyuwangi, and Makassar.
Currently, Grab has been operating in 8 countries in Southeast Asia include more than 500 cities.
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Original article is in Indonesian, translated by Kristin Siagian
