Due to the money movement capabilities of Visa Direct, CIBC and Simplii clients will be able to send money to a new array of digital wallets in key remittance destinations including the Philippines, China, Bangladesh, and Kenya, where they are the primary method for people to pay and get paid alike.
Digital wallets are among the fastest-growing financial instruments worldwide, with global numbers projected to cross 5.2 billion by 2026, driven by quickly changing consumer demands. Additionally, digital wallets serve as a valuable gateway to the financial system, especially when talking about unbanked individuals in emerging markets.
The announcement builds on the companies’ prior collaboration that allows CIBC and Simplii clients to leverage Visa Direct-enabled cross-border person-to-person (P2P) and business-to-consumer (B2C) payouts through CIBC's and Simplii's Global Money Transfer service.
When commenting on the partnership, Visa officials advised that Visa Direct enables consumers and businesses to send money cross-border easily, and the company is looking forward to collaborating with CIBC and Simplii to provide their customers with more remittance options. Together, the companies seek to break down the barriers of cross-border money movement to better speed, transparency, and accessibility for the sender and receiver alike.
The press release highlights that despite the recent, swift global shift to digital platforms, cross-border money movement channels remain fragmented. Recent findings from Visa’s 'Money Travels: 2023 Digital Remittances Adoption' study suggest that consumers anticipate a future driven by digital tech in this area, with Canada ranking among the top ‘sender’ nations, sending the highest money amounts to recipients in foreign countries. About 60% to 70% of Canada-based remittance users and the US have leveraged an app-based digital payment method for international money transfers.
What is more, Simplii Financial research showcased that three-quarters (75%) of respondents send money overseas at least once a month; almost eight in ten (79%) are on the lookout for a more convenient way to send money to family and friends outside of Canada, and half spend more than USD 100 annually on transfer fees.
Adding on the announcement, CIBC representatives advised that sending foreign currency comes as an important part of many Canadians’ daily banking needs, and cooperating with Visa is set to enable the enterprise to further build its no-transfer-fee cross-border payments platform that is available with the rest of their banking services.
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