October 24, 2019 – The Philippine economy is in a sound position today in part of the steady growth of remittances from OFWs (Overseas Filipino Workers). With the increasing demand for digital wallets and electronic value transfer overtaking a significant part of the way people transact with each other, every subscription or order represents a moderate cost, where it is often valued as a percentage of the transferred.
Digital Wallet Corporation (DWC), a Japan-based financial technology (Fintech) company announced last October 21, 2019 that it has acquired remittance foreign exchange firm Speed Money Transfer (SMTP) for an undisclosed amount. The latter operates in the Philippines and Australia as Digital Wallet Philippines following the acquisition. The deal and the name change have been approved by the country’s central bank, the Bangko Sentral ng Pilipinas (BSP).
Digital Wallet Corporation is building a financial solution for international citizens that will allow them to send remittances more efficiently and will offer supplementary services as co-investment opportunities on top. This acquisition comes as Filipinos working abroad remitted $2.88 billion in August, slightly higher than July’s $2.87-billion. From the total remittance in August about $2.59 billion were sent through banks.
According to the World Bank, the Philippines ranks the fourth-highest remittance recipient globally in 2018 at $34 billion, trailing Mexico at $36 billion, China $67 billion, and India at $79 billion.
Eiji Miyakawa, Founder & CEO of Digital Wallet Corporation said in a statement;
“Digital Wallet Project is a realistic bridge for international citizens using fiat to enjoy new opportunities by cryptocurrency to benefit from investment projects in the Philippines, which would otherwise not have been accessible. We see the potential of cryptocurrency to be a universal financial platform and an alternative to traditional project financing.”
In the domestic economy, overseas remittances have been the largest source of Philippines foreign exchange income that protects the from the externalities by ensuring a steady supply of dollars into the market system. Last September 2019, Grab Financial, the financial arm of Southeast Asia’s most-valued ride-hailing startup, is eyeing to launch its first cross-border remittance corridor between Singapore and the Philippine in the fourth quarter 2019. The move will allow the users to remit money instantly and securely using the GrabPay wallets.
This article is published on BitPinas: Japanese Fintech Firm Digital Wallet Corporation Acquires PH Remittance Firm