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Remittances are a big deal for many families in emerging markets. And for good reason – they’re an important source of income back home. But sending money as is to a foreign country can be a costly affair, and there are lots of unnecessary charges to be paid, cutting down on the actual funds being sent. We are all aware what a hassle traditional cash transfers can be, after all. That’s where productized remittances come in!
Remittance refers to the transfer of money from one person or entity to another. The word “remittance” comes from the verb “remit,”, originally from the latin verb “remittere” which means to send back. Although the term can be applied to any payment made for an outstanding bill or invoice, it is commonly used to describe money sent by individuals working abroad to their families in their home country.
Productized remittances are transfers made using digital platforms and technology, making the process more convenient and efficient. Instead of sending cash, the sender can directly transfer money to the recipient’s bank account, mobile wallet, telecom account in the form of talk time or data access, vouchers for the purchase of goods and services or even a prepaid card. It’s a more secure, efficient, and convenient way to transfer funds.
So why should you pick productized remittances over traditional remittances? Here are the reasons:
Cost-effectiveness: One of the biggest benefits of productized remittances is cost-effectiveness. By using digital platforms, the need for intermediaries is reduced, leading to lower fees and better exchange rates. It makes it easier for families to access the money they need.
Sender control: Senders also have more control over the process with productized remittances. They can track the transfer in real-time and the recipient can receive the funds instantly. Senders can also choose from various delivery options to suit their needs, such as recharging a mobile wallet or sending a prepaid card. This provides greater peace of mind for the sender, knowing that the funds are being transferred in a secure and efficient manner and are to be used by the receiving party for the purpose intended by the sender.
Money-managing options: For the recipient, productized remittances offer a wider range of money-managing options. They can access the funds in a more flexible manner, for example, by using a prepaid card to make purchases or withdraw cash from ATMs. They can also save, invest, or use the funds for other purposes. This gives the recipient greater control over their finances and can help to improve their financial stability in the long-term.
Prepay Nation is making productized remittances easier than ever! We offer a platform for prepaid products through our global network of mobile operators, digital merchants, and retail partners. This makes global mobile and e-commerce transactions easy and efficient and provides opportunities for unbanked and underbanked communities to participate in digital lifestyles and manage their financial needs.
With Prepay Nation, people from all over the world can support their loved ones back home by recharging their prepaid mobile phones. We cover over 600 mobile operators across 150+ countries. Not just that, users can also purchase a prepaid top-up, pay utilities, buy gift cards, vouchers, gaming credits and more through our platform. Our products integrate with banks, mobile wallets, billing aggregators and prepaid card providers, giving users a range of delivery options with productized remittances.
In a nutshell, productized remittances are clearly a better alternative to traditional cash transfers. They’re more cost-effective, provide greater control for the sender, and offer a wider range of money-managing options for the recipient. And Prepay Nation is making it even easier and more convenient for users to transfer funds and support their families! Want to find out more about us? Give our website a visit today!
Author
Paolo Montessori, CEO