Transforming remittances in Colombia

Transforming remittances in Colombia

TerraPay partners with Nequi and contracts with Bancolombia to make remittance transformation happen.

TerraPay and Nequi by Bancolombia (Nequi) have entered a landmark partnership designed to transform remittances for Nequi’s 17.5 million customers.

This partnership is pitched as opening the ability for Colombians to receive remittances from their relatives and friends in more than 200 countries using only one connection.

Underpinned by TerraPay’s payments technology, Nequi users will have access to an easy-to-use financial app, without long queues, long waiting times, secure experience and without any additional fees for the beneficiary.

The partnership is said to bring together the shared values of both companies, helping people manage their money efficiently and achieve their financial goals while also paving the way for financial inclusion.

Both parties say Nequi’s financial expertise along with TerraPay’s digital payment solutions will ensure more people can gain better access to financial products and services and greater autonomy over their money.

Using the Nequi app, users will have immediate access to manage the remittances they receive.

Ambar Sur, CEO and Co-Founder, TerraPay, said: “We are thrilled to partner with Nequi who share a desire to guarantee that Colombians can receive remittances from family and friends across the world in an easy, secure way.

“We both understand the need to improve the experience every person has with accessing their money and making transactions. Our aim will be to ensure users of the Nequi app have affordable access to traditional cross border payments or remittances channels for many years to come and feel financially empowered.

“As the only payments network to have 29 licenses and regulatory approvals globally, along with real-time transaction and risk monitoring capabilities, our ambition is to continue expanding our world-class remittance services.”

María del Pilar Correa, CPO, Nequi, said: “This partnership will allow us to transform the way we deliver remittances and further empower Colombians to better manage their money and save for a brighter future.

“After receiving their remittance in Nequi, users can use the app to send money to other people, make digital and physical payments, organise their finances, save, and much more.

TerraPay shares our vision to pave the way for financial inclusion and that is evidenced in the work they have done in recent years globally. We look forward to work with TerraPay to bring our advanced financial services to millions of people in Colombia.”

TerraPay and Bancolombia

Bancolombia and TerraPay have signed a contract to strengthen cross-border remittances across Colombia.

Bancolombia is Colombia’s largest player of remittances.

As part of their collective commitment to enhance financial inclusion, the two companies intend to enable seamless cross-border transfers, connecting Colombians living away from home with secure, innovative, real-time solutions to send funds back.

TerraPay’s reach and agile infrastructure, connecting 100 remittance companies in the world, enabling the flow of payments between 200+ send countries and 120+ receive countries, is set to strengthen the domestic remittance market.

At the same time, leveraging TerraPay’s innovative payment solutions will enhance Bancolombia’s capabilities and reach exponentially – it has agreements with 17 remittance companies with a scope of 125 sending countries.

“It is not a minor figure: thanks to these agreements, Bancolombia is positioned as the largest payer of remittances in Colombia. In 2022 alone, of the US$ 9,429 million that arrived in the country, the entity paid US$ 5,692. This new agreement with TerraPay will multiply these flows, especially with an ally capable of innovating with its solutions and infrastructure,” said Cristina Arrastía, Vice President of Business, Bancolombia.

“Beyond the growth in the way of receiving money, the greatest impact will be on people, especially those Colombians who have a family member abroad, from whom they receive resources for their sustenance in Colombia. Colombians themselves in other countries will also benefit due to the number of channels they will have available to move money to the country.”

According to studies developed by Bancolombia, 36% of the resources that arrive from abroad are used in the country to sustain households, while 13% is directed to the payment of obligations, 7% to expenses in health and well-being, 6% to fashion, 5% to food and 6% to travel and transport.

It is expected that this new alliance between Bancolombia and TerraPay will maximize the entry of money into the country from the United States, England, Spain and other countries in Europe, Asia and Africa.

Paula Andrea Valle, Director – South America, TerraPay said: “The agreement between the two companies is extremely important. Bancolombia currently has the largest share of the remittance market, which for us means reaching this market the right way with the right partner. The arrival of TerraPay in the country represents ease and effectiveness in the flow of resources globally.

“TerraPay is the only payments network to have 29 licenses and regulatory approvals globally, along with real-time transaction and risk monitoring capabilities, allowing us to ensure 100% compliance.”

Today, TerraPay powers the frictionless global movement of money in more than 7.5 billion bank accounts, through more than 2.1 billion mobile wallets, while ensuring that over 97% of its transactions are delivered in less than a minute.

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