By Oliver Smith on Wednesday 17 June 2020
Japan, New Zealand, Saudi Arabia, Singapore, and Ghana are among the new countries.
Money transfer group TransferGo is adding 11 new markets to its remittances platform today, including Singapore and Saudi Arabia.
Launched in 2012, TransferGo says it has now surpassed 2m customers worldwide and now operates across 32 countries in total.
“With footfall decreasing dramatically in high-street financial services companies, anyone looking to send money abroad to friends and family has become reliant on digital-first money transfer services,” said CEO and co-founder Daumantas Dvilinskas.
The startup says it has now facilitated over 7m transactions since launch, and in the last few months since the outbreak of Covid remittances made daily have been “increasing significantly”.
“With a continued march towards a cashless society, our service is becoming more vital than ever, and we’re working diligently to support the evolving needs of both new and existing customers in these challenging circumstances,” added Dvilinskas.
While online remittances may be booming in the short term, some are sceptical about whether the trend will continue.
US investment bank Qatalyst Partners wrote in a note recently that while online remittances will accelerate in the longer-term from coronavirus, the likes of TransferWise, WorldRemit and TransferGo will all face a more immediate hit by “higher unemployment affecting disproportionately migrant workers”.
For now unemployment rates have been offset by government subsidies and support schemes in many countries, which may not continue through a global recession.
Still, until then platforms like TransferGo will likely benefit from booming trade as a result of lockdowns and a lack of international travel.
