SOCASH, a Singapore headquartered fintech startup, has announced its’ foray into the foreign exchange market with plans of a global partnership with JCB Co., Ltd., the dominant card issuer and acquirer in Japan. This collaboration is an initiative to offer a cardless cash withdrawal service at highly competitive FX rates, eliminating chances of exorbitant withdrawal fee at ATMs. The planned service will add convenience & safety to Japanese tourists visiting popular locations in Southeast Asian countries which have very low card penetration and high card fraud risks. Together, they plan to bring this service into effect after Spring 2020.
To use this service, users will need to initially register their credit card information on the SOCASH app using their smartphones to withdraw cash without having to use their cards at multiple outlets and convenience stores. In order to eliminate the risk of card theft or skimming, JCB and SOCASH plan to incorporate best in class security measures including tokenization, a 2nd factor authentication method to ensure reliability and security to cardmembers while using the app.
Through this partnership, SOCASH aims to completely negate the risks involved in using ATMs while travelling overseas. This collaboration will also benefit travelers who are on the lookout for best foreign exchange rates as this service will offer low exchange rates compared to moneychangers.
SOCASH CEO, Hari said, “ASEAN tourism is growing exponentially. As travel patterns shift beyond popular cities, it’s often hard to find an ATM or a moneychanger. This partnership is set to add convenience to the travelers and diversify our offerings as we move beyond the conventional foreign exchange services for adventurous people travelling far & wide.”
Since the public launch of this service in March 2018, the users of SOCASH reached over 130,000 among a population of 5.6 million in Singapore and processed over 1.5 million transactions with 1,400 merchants in partnership. The company raised US$6 million in its latest series B funding round led by GLORY LTD (GLORY) in July and is looking to scale up its penetration in the ASEAN markets including Malaysia, Indonesia and Hong Kong.