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Digital-first remittance platform WorldRemit is launchingWorldRemit for Business, which will enable UK-based small- and medium-sized businesses (SMBs) to pay employees and contractors in 140 countries.
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Here’s what it means: WorldRemit for Business is addressing two pain points in cross-border business-to-business (B2B) transfers: price and speed.
B2B payments are often slow, expensive, and paper-heavy, which can make it challenging for firms to pay suppliers and get paid. WorldRemit for Business addresses some of those pain points by allowing SMBs to initiate transfers from bank accounts, credit, or debit cards, adding a level of convenience for the sender.
Additionally, WorldRemit for Business is comparatively less expensive than existing services from major banks, which could be especially compelling. The solution will also enable SMBs to track transfers in real time and receive notifications about foreign exchange rates, which can give them visibility into the best time to initiate transfers.
The bigger picture: Moving into cross-border B2B can allow WorldRemit to substantially open up its revenue streams and sources of volume beyond remittances.
- The remittance space is extremely crowded with digital-first upstarts like Remitly, InstaRem, and TransferWise looking to capitalize on the growing opportunity. This announcement follows WorldRemit’s recent Series D funding round, in which it raised $175 million, bringing its valuation to $900 million. The firm said it would use the funds to grow its consumer transfers and expand into B2B offerings. This funding could allow WorldRemit to develop more offerings both in remittances and in cross-border B2B to open up new streams of revenue and serve as a hub for multiple cross-border payment use cases.
- And while the space is crowded, there’s room to grow in cross-border B2B and capitalize on massive volume opportunity. Cross-border B2B is expected to reach over $218 trillion in volume by 2022, up from $150 trillion in 2017. And by providing a more convenient, affordable solution, WorldRemit could establish a leading position in the cross-border B2B space as it grows.
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