CIBC has formed a new collaboration with Visa, a trusted network and world leader in digital payments, to help the bank’s clients send remittances across borders safely and more conveniently. 

With Visa’s money movement capabilities, clients of CIBC and its digital banking division Simplii will now be able to send money to more digital wallets in the Philippines, China, Bangladesh, Kenya and other key remittance destinations. 

IMAGE CREDIT: https://www.paymentscardsandmobile.com/

In a press release, Visa announced that this new capability will become available in the coming months, with Visa Direct helping CIBC clients improve their cross-border money movement offerings with near-real-time remittance to digital wallets, bank accounts, and cards.

“Sending foreign currency has become an increasingly important part of many people’s daily banking needs — a trend that we expect will continue for years to come,” said Jimmy Dinh, managing director of Direct Financial Services at CIBC Capital Markets. 

It is estimated that about one in seven people worldwide are involved with remittances and the sending of foreign currencies.

Providing more remittance options for customers

According to a report from the Bangko Sentral ng Pilipinas (BSP), Filipinos working overseas have sent home a record US$31.4 billion in cash remittances in 2021, providing strong backing to the Philippines’ economic recovery from the pandemic.

The shift in digital remittance channels also made money transfer and recording easier.

Digital wallets, which offer a solution to this demand, are among the fastest-growing financial instruments in the world, and they are especially valuable to unbanked individuals in developing markets, the release said. 

Visa Direct provides access to nearly 8.5 billion endpoints, including more than 2.5 billion digital wallets, 3 billion cards and 3 billion accounts, per the release. 

“Visa Direct enables consumers and businesses to send money cross-border with ease, and we are thrilled to work with industry leaders like CIBC and Simplii to provide even more remittance options for their customers,” Sam Fuda, vice president and head of commercial and money movement solutions at Visa Canada, said in the release. 

In another collaboration, Visa has also partnered with International Money Express (Intermex) to extend the latter’s money transfer services to 20 other countries that it didn’t previously serve. This expansion of Intermex’s services is made possible by its expanded integration with Visa Direct. 

Also, in November last year, Visa expanded its collaboration with Remitly to streamline cross-border fund flows. Both companies’ expanded efforts enable Remitly customers in more than 15 countries, including the United States, Canada, the United Kingdom and Australia, to push funds directly to holders’ Visa debit cards and bank accounts in more than 100 jurisdictions globally.

The transfers can be tracked directly through the Remitly app. 

By Ralph Fajardo

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