The financial space is witnessing a number of disruptive players trying to undercut the traditional money exchange methods. These players are working towards helping businesses and customers save billions across currencies. The remittance market is estimated to be worth $15 billion globally with Western Union controlling 15% of the market. Azimo, a new UK based start-up is tapping into this highly fragmented market.
Azimo intends to make remittance easier, cheaper and more accessible. The company recently launched a new £1 money transfer service for India, Pakistan, Bangladesh and Sri Lanka. Azimo follows a seamless remittance procedure. Customers can register on the website, provide details of the recipient such as bank account, cash collection point, etc. and simply submit the amount, which can also be done in multiple formats.
Azimo’s process cuts the transfer fee by a significant margin. Azimo’s online service charges as low as £1 or less than 1% to send any amount, along with the best exchange rates on the market. This is quite low as compared to Western Union’s usual 9%. This means more money for the one transferring the money. The Bill and Melinda Gates Foundation has already estimated that a cut from 10% to 5% on remittance transaction costs can open up an extra $15 billion for the developing world.
A significant proportion of Azimo’s customers include warehouse workers, workers in hospitality sector and those in the low-skill migrant category. As per Azimo’s estimates, 76% of all transactions are marked as send for family support with 50% of transactions coming from lower-skilled migrants. Workers in this category are not that tech savvy and require a system that is easy to understand.
To address majority of its customer segment effectively, Azimo runs in 11 different languages. The company ensures that the writings for the transactions are done by native speakers. Moreover, the company provides phone operators as well to take calls in different languages. Azimo is also expanding its list of countries to which money transfer service can be provided. Since its launch two years ago, Azimo is now present in 198 countries. Azimo’s service is available for both instant cash pick-up at over 30,000 locations and direct payment to any bank account.