Announcing the Second LTP9 Leaderboard: Companies Leading the Way in International Remittance

After successfully releasing the first ever leaderboard analysis on the Fraud and Authentication segment of the payment industry, Let’s Talk Payments announces its second LTP9 leaderboard analysis on another important and attractive category in the payments domain – INTERNATIONAL REMITTANCE.

The remittance industry is experiencing fast growth and ongoing attention from a number of startups and investors, bringing along technological and product innovation to address the increasing demand in this important market. Multiple startups have ben launched and some have had significant growth even in this mature segment. This highlights the huge potential in a segment which includes the presence of established companies with decades long operations. Hence, research and analysis of this segment holds an important place in the payments industry. It will help to understand the changing dynamics of the remittance market which is majorly driven by continual growth in global migration.

We have followed our approach of extensive primary & secondary research and identified 125+ companies operating in the international remittance segment. After performing detailed analyses for each of these companies, they were scored on 15+ subjective and objective parameters to arrive at quantified assessments for each one of them. These parameters are further clubbed under the 3 main LTP9 heads: Focus, Momentum and Impact. Core competency and degree of focused operations for each of the companies is evaluated across various remittance origination formats (i.e. Offline – Cash based transfers, Money orders, Demand drafts etc. , Online – Account to local agent or account to account transfers and mobile based remittances) to arrive at the most leading LTP9 companies. This will help our readers to obtain a clear understanding of the product positioning of each company amidst a plethora of exciting companies in this space. This leaderboard comprises a well-researched filtration of startups and well established players. As per the LTP9 framework methodology, interviews with key industry stakeholders are a crucial input to this study which have helped us to get actual market feedback on the emerging technologies along with the strengths of various companies who have invested them.

In ‘expected impact’, we were looking for the amount of online, mobile wallet integration and mobile interface innovation that been implemented in the platform or solution. International remittances had a Cash era, then online came along as expected and right now the trend is towards mobile based remittance. In the near future, we will see integration of international remittance in mobile wallets including features such as utility payments for third parties (relatives) in foreign countries (of origin).

The LTP Canvas Report includes the raw data, industry overview & trends, US remittance market analyses, and comprehensive insights & understanding for the companies in the remittance segment. It also talks about the process through which the companies have been given their respective ratings, as per the framework, to arrive at International Remittance LTP9.

Brief profiles of the shortlisted LTP9 International Remittance category companies:

Moneygram: With a long and established industry presence, Moneygram has been providing services across multiple remittance formats and continually innovating in sync with market and technology trends. The company provides services at 347,000+ agent locations in 200+ countries and relationships with 9,000+ billers for bill payment services through all offline, online and mobile formats. Also, it has been investing in multiple forward-looking partnerships such as its agreements with Devicefidely for mobile based remittances and with BICS for person to person transfers

Xoom Corporation: With little over a decade of focused operations in the remittance industry, Xoom, which went public in 2013, has established itself as a renowned remittance company, primarily in the online space. Company’s operations in mobile based remittances are also growing significantly with 52% of its overall transactions done via ‘Xoom mobile’ in Q3 2014. Experiencing a revenue growth of 22% y-o-y, Xoom Corporation clocked revenues of $122Mn in FY 2013.

RIA: Headquartered in California, Ria was acquired by Euronet in 2007 which itself is an established company in secure electronic financial transactions. Ria’s operations have benefitted from the increased market synergy via this acquisition with offering in online, offline and mobile remittances in 136 countries. The company launched the mobile wallet app ‘Boost’ powered by Wipit to enable the mobile money transfers.

Via Americas: Privately owned Via Americas provides remittance services in 60+ countries at a much more competitive price points than some of the highly established players. With presence across online, offline and mobile based remittance formats, it provides services in South America, Central America, the Caribbean, North America, Western Europe, South Asia, South East Asia, and Oceania.

Western Union: Western Union is the largest company operating in the remittance space with a significant market share and a vast global operation. In addition to an agent network of 500,000+ agents across 200+ countries and territories, WU has over 100,000 ATMs and self- service kiosks. With an y-o-y increasing revenue, WU has been continually partnering with agents or technology companies to widen its geographical and product spread.

Money Dart: Moneydart is the only Non-Banking financial institution in the US which is a member of SWIFT. Its association with UAE Exchange, an Abu Dhabi based company providing services in bill payments, foreign exchange, and money transfer brings significant market synergy and a wide network of operations and service availability. The company handles over 72 currencies, facilitating remittance to any bank across geographies.

Regalii : A recent entrant to the remittance industry with operations launch in 2013, Regalii provides international bill payment services to Latin America, allowing immigrants to use their mobile to track and pay bills. The company is backed by venture firms including Kapor Capital, Winklevoss Capital, Maverick Capital, Banco Itau and Alexis Ohanian with substantial existing funding. Its adoption of a flat fee structure for any remittance amount offers a different take on pricing in this competitive market.

Boom Financial: Founded in 2008, Boom Financial has differentiated its positioning in the remittance market in 3 major segments - target customers, remittance formats and pricing structure. Company is focused on servicing the needs of the underserved and unbanked consumers, targeted the immigrant community. The company serves 31 markets; 15,000 locations in U.S. to load money including 6,000+ 7-Eleven stores; 150,000 ATMs in the U.S. & Mexico and 650,000 ATMs worldwide to withdraw money using a Boom debit card.

Uniteller Financial services: Found in 1993, Uniteller was acquired by Banorte in 2006 for $20 Million enabling it to serve as a collector, a transmitter, and a payer of money transfers. Banorte is a leading bank in Mexico, the highest recipient of remittances from the United States. Uniteller has a network of 30,000+ paying locations and relationships in more than 18 countries. It entered in an agreement with Wells Fargo in 2011 to expand Wells Fargo’s Express remittance send network.


The LTP9 Canvas report for Online Fraud & Authentication is available for Pre-Orders to our Newsletter Subscribers at an Introductory price of $750.