“This is for the people who have been paying huge fees to send money to their families back home”
Underbanked migrant workers can lodge cash to their home bank account from the UK for the first time.
UK international payments fintech, PiP iT, has launched PiP iT banking – a cash lodgement facility which enables migrant workers to lodge cash to, and pay bills through, their home bank account from any UK Post Office.
While many banks in developing nations do have a presence in other markets, they do not often have a branch network overseas. PiP iT’s new one-of-a-kind facility will give these banks an international branch network through the growing PiP iT Collection Network spanning UK, Canada, South Africa and UAE – with The Philippines as well as other European countries on the way.
$450 Billion in global remittance is sent from developed to developing nations annually. Typically 15% of this is sent in cash through traditional money transfer offices charging high fees (up to 12% of the transaction value), for collection by a family member at a local pick-up point. Often there are security concerns around these cash pick-up points leaving the family member vulnerable. PiP iT have also learned that when cash is remitted, it is frequently spent on something other than what it was intended, leaving important bills outstanding for example.
With PiP iT banking this money goes directly into a bank account where it can be allocated to savings, to pay bills or can be withdrawn locally, giving the customer full control of how the money is used.
Cash is a vital part of life in many developing nations. A successful Financial Inclusion Strategy for any bank is about increasing the ways in which people can use cash – and innovative cash-friendly programs like PiP iT banking will help customers to do this.
In recent years many developing nations have successfully increased the number of bank account holders but a massive 25% of these accounts are unused. With PiP iT banking, banks can now offer their overseas clients access to their home bank account from abroad for the first time.
Speaking at the launch of PiP iT banking, Co-Founder and CEO, Ollie Walsh said:
“We are the first Irish start-up to make cash the cornerstone of our business. As a Financial Inclusion company, our mission is to bring the digital world to everyone who needs it but can’t currently access it. Dormant accounts are a huge problem for many banks around the world. Our unique cash lodgement facility will give these banks a new way to engage with their customers by offering a real alternative to traditional expensive remittance methods through the security of a bank network. Users of PiP iT banking are primarily migrant workers who are underserved by modern banking and who are still very much reliant on cash.”
How it works
The customer logs onto their bank APP / mobile banking site. They select an option to lodge cash to their account with PiP iT and a barcode is created within the APP.
This barcode can be brought to any UK Post Office and scanned at the counter, the customer ‘lodges’ cash over the counter. Once the transaction is complete, PiP iT notifies the bank to credit the customer’s account.
Mr. Walsh commented,
“It’s a very seamless process. The customer goes to their mobile banking APP and chooses to lodge cash using PiP iT. A barcode is generated within the APP, which they can then bring to their local UK Post Office, where it is scanned, they pay in cash, and the lodgement appears in their bank account back home.”
PiP iT has enjoyed rapid success since its launch in 2017, and the company has expanded significantly in the past 12 months following a successful fund-raising exercise which secured over €1.25m in funding from VC private investors and Enterprise Ireland. PiP iT is a Social Impact business with a mission to help migrants support their families at home.
Mr. Walsh concluded,
“We are very excited about PiP iT banking and we are in advanced discussions with a number of banks in Africa and India, such as Sterling Bank in Nigeria and Tawakal in Kenya who are looking to offer the PiP iT banking cash lodgement facility to their overseas customers.”
Pictured left from right:
Maurice O’Gorman, Chairman of Galway City Innovation District; Clare Tracy, Head of Marketing, PiPiT Global; Ollie Walsh, CEO, PiPiT Global.