Western Union, a money transfer mogul, has partnered with Coins.ph, a Philippine-based blockchain startup, to allow Filipinos to receive cash remittances more easily.
The new partnership will witness both international and domestic payments made through Western Union’s network go directly into the Coins.ph digital wallet of the receiver. The startup, which has “over 5 million” users, revealed the news last week.
The service intends to provide “quick and convenient access to remittances, in urban and remote underserved areas,” Coins.ph stated, mentioning that connecting with Western Union’s digital and retail networks allows clients to receive payments from nearly all territories and countries around the world.
With probably over 10 million Filipinos living and working outside their home country, the Philippines is one of the top destinations worldwide for remittances. It’s also a developing industry. The startup mentioned the nation’s central bank, the Bangko Sentral ng Pilipinas (BSP), as saying that monthly personal remittances from Overseas Filipino Workers (OFWs) had reached $2.7 billion last July and increased three percent year-on-year.
Molly Shea, senior vice president and general manager, Global Money Transfer, Asia Pacific, Western Union, stated:
“With this collaboration with Coins.ph, we are delighted to offer customers in the Philippines with an unmatched depth of services and capabilities, and convenience right at their fingertips.”
Coins.ph provides financial services for Philippine residents, especially those who are unbanked, providing a mobile wallet allowing services such as bill payments, remittances, and cryptocurrency purchases. The company has secured both Virtual Currency and Electronic Money Issuer licenses issued by the BSP.
Ron Hose, co-founder and CEO of Coins.ph, said, “There are many overseas Filipino workers who send money back home regularly and are always looking for additional remittance options that will make it most convenient for their loved ones to receive money.”
The company noted that users of the service must first comply with an online Know Your Customer (KYC) verification process and receive Western Union transfers into their wallets after successful completion. A monthly remittance maximum of 100,000 Philippine pesos per month (nearly $2,000) is imposed.
The deal between the crypto firm and the popular money sender is noteworthy. Western Union has formerly teased likely relationships with both Coinbase and Ripple, but nothing came into fruition.