Uberization of Money Transfer
Money Transfer Operators (or MTOs) are facing a difficult time in today’s highly competitive world. Gone are the easy days of automatic income and customers walking in through the door.
As the payments marketplaces have evolved, new players have sprung up, incumbents have adopted newer, more efficient methods of money transfer. Complacency has turned quite a few incumbents into dinosaurs – they just don’t know it yet.
In such a market, how does a Single-State licensed MSB or a small MTO possibly compete?
The answer lies in collaboration.
A few months ago, I wrote about the Uberization of Money Transfer. It was not just an idea. It was the culmination of a few years’ worth of work where I saw the same marginalized MTOs / MSBs putting up a brave face and trying to face the headwind of competition.
A common-denominator based approach provides combined-power of the network. Plain and simple. The mechanics are not complex. Disenfranchised MTOs/MSBs can revitalize themselves, their business and have a much greater outreach, by simply agreeing to a few basic association and settlement rules. It is really that simple. I’ve spent 100s of hours examining this problem.
Today, individual small and medium MSBs and MTOs can leverage their regional licensing and correspondent network and become a part of a larger alliance.
The pitch deck below provides a brief into this alliance (please wait a minute or two for the presentation to load).
A copy of this presentation can be downloaded from here. If you’re interested, please feel free to contact us.