Coined as Singapore’s first self-serve remittance service, mRemit allows you to transfer funds to the Philippines, Indonesia and India through your mobile phone. For the *180,000 Indonesians living in Singapore this meant being able to provide relief for loved ones back home. Launched in September 2012, mRemit garnered more than 25,000 users within its first two years.
*Estimates in 2014, as published in The Straits Times
“With mRemit, customers need not queue for hours at traditional over-the-counter remittance outlets. This is particularly useful for workers who have very few days off or work irregular hours,” said Mr. Johan Buse, SingTel’s vice president of consumer marketing.
The Singtel Group is Asia’s leading communications group. Providing a diverse range of services including fixed, mobile, data, internet, TV, infocomms technology (ICT) and digital solutions. Headquartered in Singapore, Singtel has more than 130 years of operating experience and played a pivotal role in the country’s development as a major communications hub.
How Does It Work
A money transfer is done via SingTel’s mWallet smartphone app or by sending the word “remit” via SMS to the number 77766. Transfers are done with ease in real time, recipients have access to funds transferred within three minutes of a successful transaction. Customers who use mRemit had to first top up their mCash accounts at AXS stations or locations like 7-Eleven, Cheers, Fairprice Xpress and SingTel retail stores.
The Big Picture
The total cost of remittance from Singapore to a major remittance destination like India, for instance, for small amounts equivalent to S$260 (approximately) appears to hover between 4% charged by money transfer operators and around 3% levied by banks, and online portals may cost a bit less. Larger-ticket remittances cost much less in percentage terms. The less costly it is to remit, the more value is left in the hands of the beneficiaries.
According to the World Bank, “if the cost of sending remittances could be reduced by 5 percentage points relative to the value sent, recipients in developing countries would receive over US$16 billion more each year than they do now”.
Tranglo is a cross-border payment hub with a proven track record in business payment, foreign remittance and mobile payment solutions. Founded in 2008, we have offices in Kuala Lumpur, Singapore, Jakarta, Dubai and London. Our global network spans more than 100 countries, 2,500 mobile operators, 1,300 banks/wallets and 130,000 cash pickup points. To find out more, visit www.tranglo.com, LinkedIn, Facebook or Twitter.