At a recent press conference, Merchantrade Founder and Managing Director Ramasamy K Veeran said the company currently had agents in over 350 locations and by mid-2018, hoped to have agents in another 200 locations, especially in rural areas.
“We are trying to provide accessibility to underserved areas, where there are businesses and blue collar workers who need our remittance and money changing services.”
Unlike banks that must set up branches, Ramasamy said Merchantrade would leverage on small retail shops in rural areas that could act as agents to provide these services.
He added that having agents in rural areas would also be a boon for businesses there, as Merchantrade also offered services for small and medium enterprises.
Merchantrade’s efforts will be a shot in the arm for those living and working in rural areas, amidst recent reports that more bank branches would be closing nationwide as part of an effort to increase operational efficiency.
Ramasamy explained that unlike banks, Merchantrade’s strength, especially in the business of remittance, was its total control over the entire process.
“We have control from end to end so we can provide seamless remittance, resulting in faster transfers and better exchange rates compared to banks.”
He also told FMT about Merchantrade’s efforts to expand its online remittance services through its award-winning e-Remit app.
The app, available on Android and iOS platforms, recently snagged a prestigious Florin Awards Asia 2016 for Best Remittance Breakthrough Transfers and is expected to hit over RM600 million by year end in remittance value.
“By the end of the year, the amount of money remitted through Merchantrade would reach the RM5.2 billion mark, so the amount of money remitted using the app is very significant.”
The app allows for cashless and seamless remittance transfers to the United States, United Kingdom, New Zealand, Australia, India, Indonesia, Philippines, Bangladesh, Myanmar, Nepal and Sri Lanka, at any time and any day throughout the year.
At present, most app users in Malaysia are white collar expatriates. However Merchantrade is changing all that by seeking more locals, especially the parents of those studying abroad.
“With eRemit, parents and employers can just transfer funds from the comfort of their homes. The best part is that the entire process will only take less than 10 minutes.”
He also said eRemit was cheaper than conventional remittance and added that the company was working to make the eRemit system available in other countries as well.