Earlier this month, the Singapore-based company expanded into the Middle East.
“South Korea’s digital infrastructure is one of the best in the world – the country boasts one of the highest internet speeds and mobile connectivity. Yet the overseas digital payments scene has yet to catch up due to complex legacy systems,” said Michael Minassian, Nium’s vice president and regional head of consumer business. He added that Nium will help “improve the cross-border digital payments services” in the country.
“We believe that our partnership with Nium can help us expand our B2B (business-to-business) offerings in such a highly competitive market,” said Jeon Hyuk Goo, CEO of E9pay Co. He added that E9pay is “an industry leader in [the] cross-border money transfer market for migrants and individual money senders in South Korea.”
As of today, E9pay individual and business customers “can access real-time cross-border payment capability directly” through the company’s app and business portal, the company noted.
According to the release, since South Korea’s deregulation of remittances in 2008, the industry has seen significant growth. South Koreans have “quickly integrated money transfers with financial technology, and most do not carry cash around these days,” stated the release. “While the country has been successful in its push toward being cashless within its borders, overseas money transfers are largely conducted via bank wire transfers, which can be expensive and time-consuming.”
With its move into the Middle East, Nium cited data from the nonprofit Milken Institute, which stated that “the Middle East has become a hotbed for FinTech activity and regulatory development, with several jurisdictions competing to establish themselves as the region’s FinTech hub in recent years. FinTechs across the Middle East are also set to grow at a compounded annual growth rate of 30 percent.”
PYMNTS’ September Smarter Payments Tracker, powered by Nium, noted that “financial institutions (FIs), FinTechs and other remittance service providers play a valuable role in facilitating and safeguarding the cross-border movement of funds that keeps many households afloat.”