Remitter seeking slice of OF market from US

BROOKLYN, New York, United States-headquartered Tang Group Inc. is seeking a slice of the overseas Filipino remittance market with the launch of its mobile transaction and payments application called “TANGAPP,” or receipt in the local language.

According to Founder and CEO Maria Rebecca Antonina Kersch, the idea of another app catering to remittances arrived with the experience of her aunt, an overseas Filipino worker (OFW), who regularly sends home money to her homeland.

Kersch said TANGAPP is similar to the eponymous text messaging-based payments system of Venmo Inc. She said as a user of the Venmo system senders can remit as little as $5, making it an innovative and true international peer-to-peer mobile payment app.

Kersch said data shows Filipinos abroad send over $35 billion to the Philippines every year. Their recipients in the Philippines mainly rely on cash pick-ups which are costly and inconvenient, she added.

Kersch said her firm is working to make improvements in the industry by offering transparent low fees and a “live” most-favorable exchange rate.

“We started TANGAPP so my tita [aunt], and millions of other OFWS, have an easier, more convenient and less expensive way to send money back home in an otherwise lengthy and expensive process. Sending money to the Philippines should be as easy as sending a text message regardless of your location, income level, or currency. We’re achieving that with TANGAPP,” Kersch said during a news briefing that the company organized recently at the Makati commercial and business district.

Members from the US, Europe and India offices of Tang Group joined the Philippine-based team last Monday as we met with current and prospective business partners, held community events and learned from and about the ways of life of the Filipino, Kersch said. All of this is in support of the company’s social mission, which is to help improve the lives of Filipinos both at home and abroad, she added.

“We believe that digital mobile payment services can improve for Filipinos. Whether they are one of the 4.5 million Filipinos working in the US or the tens of millions of unbanked in the Philippines, every Filipino deserves access to the ever-growing international digital economy,” Kersch said.

She added this is the reason “we’ve set out to create more than just a remittance app.”

“One day like today, sending money overseas, paying for groceries, and supporting a cause will be as easy as texting. All on the same easy-to-use mobile app,” Kersch said. She said they are currently offering a gift to families in the Philippines who receive remittances from the US. A receiver gets a bonus $20 gift if he or she uses the code “TANGAPPNOW” when the sender remits a minimum of $10.

Kersch said the Tang Groip will offer more services once the business gets bigger.

She said that last year, the app saw an average month-on-month growth rate of 35 percent, with over 40 percent of its users being repeat users. The app has thousands of downloads and has remitted hundreds of thousands of dollars and pesos. As such, it has saved Filipino senders and receivers tens of thousands of pesos in fees and hundreds of hours in time, according to Kersch.

TANGAPP raised $1.5 million in preseed funding from 17 angel investors in 2021 and is currently raising its $2.5 million seed round from venture capital firms as well as angel investors.