MoneyMatch Collabs With Ripple To Breakup Malaysian Remittance Monopoly With RippleNet
- MoneyMatch partnership with Ripple has been able to offer faster and cheaper transactions tailored especially for SMEs and Individuals formerly overcharged by banks.
- Access to RippleNet has opened access for MoneyMatch to hundreds of partners globally.
Malaysian based Fintech MoneyMatch, a global remittance platform has zeroed in on servicing SME’s and Individual cross border money transfers needs. This select group of entrepreneurs has to pay their global suppliers and has over the years been forced to rely on the more traditional banking institutions.
Andrew Yap, CEO MoneyMatch, is of the sentiment that the banks were more suited to deep-pocketed clientele who make large volumes of transactions and can thus overlook higher transaction fees. The low volume clients: SMEs and individuals who might own businesses may be forced to subscribe by the same rates despite their transactions involving meager amounts.
Yap first realized that the banks were neglecting the low volume clients during his time working at Malaysia’s Financial Industry heavyweights. He was keen to note that they mostly focused on the high volume clients over the SMEs. All the transactions had a standard fee regardless of the amount.
“They were happy simply generating these revenues instead of trying to increase market share by reducing rates.”
Access to Over 120 Jurisdictions
Teaming up with Ripple has allowed MoneyMatch to offer a much faster and cheaper alternative with access to over 120 jurisdictions globally. With RippleNet’s access, they have been able to trim on the operational and systems integration overheads hence translating to reduced transactional fees for the clients. Notably, they also offer same-day settlements as transactions were only taking a few hours instead of the usual 48 hours.
“Working with RippleNet partners allowed us to cut our costs by as much as 40%.“
Starting up shop at first was difficult, highlighted Yap, as they had to partner up with the very banks for cross border remittances. They also had to form other global partnerships globally which would prove to be even harder as they were located in Malaysia, which according to Yap is ‘not a top-of-mind market for the rest of the world.
“We struggled to find a decent European partner and were stuck using the SWIFT system to make payments there.”
Solved Trust Concerns
They were now faced with trust concerns as they had to convince clients to leave reliable but yet pricey banks as most of the SMEs are faced with tight budgets. But once they had gained their trust, they saw repeat business of increased amounts sometimes even four or five times monthly, reported Yap. MoneyMatch now intends to leverage RippleNet to access new markets and suppliers to bolster the growth of SMEs.