The world is getting smaller and it’s increasingly common to move currency around. Yet consumers still don’t have an efficient and affordable way to bring funds across borders. There are so many partners involved with existing money transfer solutions, resulting in either lower marginal revenue or higher costs for the consumer.
by Salim Dhanani
Director of Business Development
Think about it: take all the user benefits of a prepaid travel card – convenience, ease, low fees, safeguards against loss and theft, and add to them the ability to transfer currencies with the click of an app. Suddenly the product’s value, and use, last long after a consumer has cleared customs.
As a frequent traveller I could load a card in euros and convert to kuna or złoty with a click of an app and at a fraction of the usual exchange rate. Program managers not only realize typical card programme revenue, but also see transactional FX margins each time money is moved from one currency bucket to another. Meanwhile, I avoid high exchange rates and bank fees on both sides of the transaction, paying lower fees overall. Win-win.
If a familiar airline, travel agent, FX firm or booking platform partnered with a multi-currency program, there are no limits to ways it could be tailored to their traveler niche.
But a tool like this has value for more than just travellers – it would simplify remittances and even trade finance. Migrant workers represent a massive market. They take a huge hit when they send money back home. Prepaid multicurrency programs can significantly streamline remittances, allowing users to simply transfer prepaid funds into a different wallet or card.
Beyond lower rates, a multi-currency program can also offer the benefits of scheduled transfers and stops, locked-in exchange rates, and a way around ‘brick-and-mortar’ hours.
Program managers can make a compelling pitch to consumers who frequently transfer currency, and Carta can give you all the pieces to create an irresistible product, right out of the box.