C2C Segment has been leading the growth in the Remittance Space
Fintech, particularly remittance has been making headlines in the news over the last few months in Malaysia and over 3 years globally. Most of the players in the headlines are of the C2C segment. There are limited number of companies focusing on servicing the B2B segment, such as EasyPay Transfers in Malaysia.
In this post, we would like to highlight our findings on the remittance space, narrowing the research to the differences between these two segments.
Here are our high level thoughts on the differences in these two segments – which are the key factors for EasyPay Transfers to exist as digital remittance platform for business transactions only.
B2B Specialists are substantially different than the C2C Providers
| C2C Providers | B2B Providers | |
| Players | Western Union, MoneyGram, Ria | Currency Direct, World First |
| Distribution | Agent Based Model, Agent takes Cuts | Direct Distribution |
| Payment | Typically Cash Base, Slowly moving to accounts, credit risk to agents | No Cash involve, Lower Risk |
| Customer Profile | Lower average ticket size, RM1,000 to RM10,000
Low customer acquisition costs Low service levels requirements |
Higher transaction size, RM30,000 and above
High customer acquisition costs High service levels requirements |
| Technology | Outdated Platforms however moving to online / mobile models | More efficient online execution platforms |
| Financial Profile | Commoditised industry
Margin pressure |
Fragmented
Opportunity for growth |
To summarise – we understand businesses require a specialised partner that has high service level and understand its customer profile well to fulfil their day to day operational requirements and compliances.
EasyPay Transfers is digital remittance fully licensed by Bank Negara Malaysia (as listed here). It can facilitate cross border remittance and money transfer for businesses, particularly to China – at lower rate, faster processing time, and with full convenience. It specialises in trade payment, whereby up to 20% of total import trade in Malaysia comes from China. Businesses can choose to settle the remittance in Renmimbi or US Dollar.
