Updated: Oct 26
We are delighted to announce that we have invested in MasterRemit, a fast-growing and profitable Australian fintech that provides a fast, reliable, and low-cost cross border payment service for people to send money to their loved ones back home.
MasterRemit is leveraging cutting edge technology to create a financially inclusive world; to give ‘a fair go’ to 2 billion unbanked people around the world, mostly in developing countries, facing barriers to tasks as simple as receiving money from their loved ones. MasterRemit’s technology transforms the landscape of the traditional international remittance model creating a level financial playing field for sending and receiving money safely, securely, quickly and at low cost.
What does MasterRemit do?
MasterRemit is a mission to change how money is moved around the world. The company has built an ecosystem to allow 2 billion unbanked people, mostly in developing countries, to receive money instantly, safely and easily to a mobile phone or bank account or via collection at a nominated pickup point. This is particularly important for Australians sending money overseas to their loved ones to help them buy food, pay rent, and hospital and school fees.
MasterRemit’s aim is to achieve financial equality for people worldwide, to create economic opportunities and improve lives, and make sending remittances more affordable and accessible for those without access to technology or a financial institution.
Why did Scalare invest?
Australia's remittance market size is US$20.1B driven by the influx of migrant workers and increased globalization of the workforce.
Australia is the initial target market for MasterRemit, currently ranking 11th among the largest remittance-sending countries in the world. As of 30 June 2020, there were over 7.6 million migrants living in Australia (source: Australian Census). This number is set to grow with more migrants arriving in Australia post-pandemic.
Sending money fast, safely and conveniently overseas, when it’s needed, is a huge problem for many Australians, who face exorbitant merchant fees and deal with an outdated financial system for remittances. Australia is currently the fourth most expensive G20 country to send a remittance from: for every $1000 money transfer, Australians pay $23 more than the Americans, $9 more than the British and $4 more than the Canadians (source: World Bank).
The traditional method for old players involves a person from a first-world country providing cash or digital remittance to an agent, which is transferred to a developing nation and to another agent. The customer has to collect it from the agent via a bank, shop or bureau de change, usually in cash. This method relies on several touchpoints and merchants whose fees are built into the cost for the customer.
Global remittance leaders like Western Union, MoneyGram and hundreds of smaller rivals rely on a model similar to this, despite countless issues with it.
In comparison with their peers in the digital remittance space, MasterRemit is the only company that can do all of the following:
· Support payments being made to the unbanked
· Offer a service with no hidden fees and transparent operations
· Send money to a mobile wallet or bank account instantly
· Collect funds instantly as a cash pick-up
· Offer low fees and excellent exchange rates, with complete transparency
· Offer support by phone and email
MasterRemit CEO, Nuradin Omar says: “Ultimately users need an ecosystem that makes it easy for them to send money in a trustworthy yet fast, secure and low-cost manner.”
Scalare is delighted to be supporting MasterRemit as they reinvent the digital remittance sector to create greater equality and transparency for all.
Co-Founders and brothers Nuradin and Hashim Omar are Somali migrants who experienced firsthand the difficulty of sending money to loved ones in urgent need of help.
CEO and Co-Founder Nuradin Omar brings strong management and technical skills having previously held senior management roles at blue-chip IT companies and Commonwealth and State Government organisations. Co-Founder Hashim Omar has worked with Tier 1 engineering companies in Australia and brings strong project management, commercial and compliance focus to his COO role.
They are supported by Sagal Hersi, previously at Samsung, in customer support, sales and community enrichment.
MasterRemit has appointed Andrew Davis as an Advisor. Andrew is a valued member of the Scalare advisor community worked at HSBC and Citigroup for over 18 years and now works with various clients in areas such as fintech engagement, corporate innovation, digital and business strategy, and market development.
The MasterRemit platform consists of Website and Mobile Apps (IOS and Android) available for download for free from the App Store and Google Play stores. Using the mobile apps, customers can make real-time money transfers to anywhere in the world, via a few keystrokes.
MasterRemit uses industry-standard technologies which power some of the world’s largest and most sophisticated websites, such as Facebook and Skype. SSL technology enables encryption and secures all forms on the site, ensuring a stable, regulatory environment with bank-level security. MasterRemit is regulated by AUSTRAC and ASIC.
To make a transfer, senders select the country, enter the amount, confirm the recipient and pay (there is no minimum transfer amount). Receivers can choose whether they receive funds in a mobile wallet, bank account or via a cash pickup location, without the need to have a bank account or visit a street agent. The service is available 24/7 and offers low fees and highly competitive exchange rates.
MasterRemit charges a transaction fee or a percentage fee and FX margin for each successful transaction, charging customers up-front in a highly transparent manner, building trust with their customers from the very first transaction.
Hitting a milestone of over 160,000 transactions processed since its inception and more than 3,200 active customers, MasterRemit’s total transactions processed have reached over 160,000. The mobile app has received over 5K downloads on Android and over 2.87K on Apple. Ratings on the platforms rank at 4.8/5 and 4.6/5 respectively (figures correct as at 30 April 2022).
MasterRemit’s expansion plans include launching into new receiving countries in Southeast Asia, establishing a new sending country, and accelerating their digital marketing activities and community engagement to generate sales.
James Walker, a founding partner of Scalare Partners will join the MasterRemit board as Non-Executive Director and support the MasterRemit team with their expansion plans.
If you wish to discuss this further, please contact Scalare Head of Community Pernille Aggerholm for an introduction to Nuradin and Hashim.
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