4xLabs, a Singapore-based fintech, has announced the launch of a new price discovery platform, Send4x for money transfer. Send4x allows users to discover the cheapest and fastest ways to send money across various corridors and will have an initial focus on providing rates for Asian corridors. Azimo, InstaRem, OrbitRemit, SendFX, TransferWise and WorldFirst were unveiled as the first batch of providers on the platform and more remittance companies will be added to Send4x in the weeks ahead.
CEO of 4xLabs, Chris Vanden Berghe said, “In Europe, alternatives to traditional banks for remittance have existed for some time. We see this same trend emerging in Asia now with the growing fintech activity and record investments in Southeast Asia. With Send4x, we want to provide price transparency for all these new local providers, neobanks or even mobile wallets, allowing users to compare cost breakdowns across both modern and traditional players in the money transfer industry, so they can get the best deals. Today, we’re pleased to be able to unveil Send4x, our latest in a line of products that are dedicated to driving price transparency in the region, and ultimately the digital transformation of the money services industry.”
Ian Cragg, Co-founder of SendFX, a money transfer provider said, “SendFX is excited to be a launch partner of Send4x and look forward to their journey to save customers money against the banks with their international money transfers around the world.”
Send4x providers currently cover more than 9,000 corridors from 45 sending countries. While Send4x will feature money transfer providers globally, the service will focus on the cost of remittance in Asia where price transparency can still be an issue, especially in emerging markets.
In 2012, 4xLabs launched Get4x, the first price discovery platform for currency exchange in the region. In 2017, the company rolled out Biz4x, a full-service platform for money services businesses to more efficiently run their daily operations with a focus on compliance and future relevance, by reaching customers through digital channels. Send4x is the latest of these digital channels and came about as a result of requests from the 4xLabs community.
Mr Vanden Berghe said, “We see Send4x as part of the solution to help drive down the rising cost of remittance, both in Asia and globally. 4xLabs’ reach with traditional money service businesses will ensure that the platform features a mix of both innovative new fintech such as blockchain and crypto remittance, as well as traditional providers in the money transfer space. Money services businesses are critical to serving the underbanked in the emerging markets and help provide financial inclusion and remittance pay-out points in many areas where banks are unable to service customers due to a lack of branches. 4xLabs is in a unique position, where we are connected to a large community of money services businesses across the region and in emerging markets that are using our Biz4x platform to run their daily operations. This will allow us to quickly and conveniently onboard them to Send4x in the near future. ”
Reducing remittance costs to 3 per cent by 2030 is a global target under the Sustainable Development Goal by the United Nations1. According to the World Bank, remittances to South Asia grew 12 per cent to USD 131 billion in 2018 and remittances to low and middle-income countries reached a record high in 2018 at USD 529 billion. The global average cost of sending USD 200, however, remained high, at approximately 7 per cent. Banks were the most expensive remittance channels, charging an average fee of 11 per cent in the first quarter of 2019.
Piyush Varanjani, Product Marketing Manager at Transferwise said, “Transferwise’s mission is money without borders. The Send4x partnership helps us bring about greater financial transparency in Asia. It gives power back to the people to move away from the hidden and unfair fees from banks when sending money overseas.”
In the next phase of development, an API will be rolled out for Send4x that will allow companies to connect directly to the service and integrate that data with their own platforms. Send4x will soon be localised for different languages and geographies.