IRemit eyes retirees, tourists for remittance growth

iRemit, Inc. is looking at other sources of remittances to help its business grow faster since the traditional flow of cash from overseas Filipinos is expanding at a low pace.

iRemit chairman Bansan Choa said they hope to be able to tap into the retirement industry which has the potential to double the remittance flow into the country over the next couple of years.

Choa said the company is looking into a new service that will allow expatriates in the Philippines to receive remittances as a complementary service to the government’s effort to establish the country as the next destination for foreign retirees.

“We know that the remittance industry is not growing as fast. That’s why iRemit is looking into other markets. We’re looking into other industries like the retirement and the tourism industries to increase the inflow of money,” said Choa.

He noted, however, that servicing the cash flow to the retired expatriates and tourists is still a remittance-related business since pensions and allowances can be sent through the remittance channel.

“The total amount that was sent last year was $24 billion. If we can attract as much as 1 million retirees into the Philippines, this will result in an estimated $20 billion inflow to the Philippines per year,” said Choa.

He said it will be like a 50-50 ratio of remittances from overseas Filipinos and cash for retirees in the long run.

“Not all of that will be passing through iRemit but, with us pioneering the effort, hopefully a big portion of that passes through us,” he added.

Choa said iRemit is also working to expand further its footprint overseas with the company negotiating with Saudi Arabian banks for a tie-up to facilitate remittances.

It is also planning to expand the number of its branches in Singapore.

“But how many branches, we don't know yet. It depends on the Singaporean authorities,” he further said.