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Why Worldremit's Business Model is so successful?

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Worldremit’s Company Overview


WorldRemit is a leading global digital money transfer service that provides international remittance services to expatriates and migrant workers. Founded in 2010 by Ismail Ahmed, Catherine Wines, and Richard Igoe, the company is headquartered in London, UK, with regional offices in the United States, Canada, South Africa, Singapore, the Philippines, Japan, Australia, and New Zealand. WorldRemit's primary mission is to provide a more accessible, quicker, and cost-effective method for migrants to send home money to their families and loved ones. The company has built a robust network that connects 50+ countries for sending cash and over 150 for receiving it, encompassing a wide range of options such as bank deposits, mobile wallet deposits, cash pick-ups, and mobile airtime top-ups. Business Model: WorldRemit operates on a digital-based business model, leveraging technology to streamline and simplify the money transfer process. Unlike traditional money transfer services that require physical locations for transactions, WorldRemit's platform is entirely online, allowing users to send money from anywhere at any time. The sender simply needs to create an account, choose the country they want to send money to, enter the recipient's details, and make the transfer. The recipient can then receive the money through various methods like direct bank deposit, cash pickup, mobile money, or airtime top-up. This model eliminates the need for physical infrastructure, making the service more convenient and accessible for users. Revenue Model: WorldRemit generates revenue primarily through transaction fees and currency exchange margins. When a user sends money through the platform, they are charged a transaction fee, which varies based on the amount being sent, the destination, and the payout method. Additionally, WorldRemit also profits from the margin difference between the wholesale exchange rate they receive and the retail exchange rate offered to customers. This two-pronged revenue model allows the company to maintain its digital platform and continue expanding its services globally.

https://www.worldremit.com/en

Country: England

Foundations date: 2010

Type: Private

Sector: Financials

Categories: Financial Services


Worldremit’s Customer Needs


Social impact:

Life changing: affiliation/belonging

Emotional: provides access

Functional: saves time, simplifies, connects, reduces effort, reduces cost, informs


Worldremit’s Related Competitors



Worldremit’s Business Operations


Cross-selling:

Cross-selling is a business strategy in which additional services or goods are offered to the primary offering to attract new consumers and retain existing ones. Numerous businesses are increasingly diversifying their product lines with items that have little resemblance to their primary offerings. Walmart is one such example; they used to offer everything but food. They want their stores to function as one-stop shops. Thus, companies mitigate their reliance on particular items and increase overall sustainability by providing other goods and services.

Customer relationship:

Due to the high cost of client acquisition, acquiring a sizable wallet share, economies of scale are crucial. Customer relationship management (CRM) is a technique for dealing with a business's interactions with current and prospective customers that aims to analyze data about customers' interactions with a company to improve business relationships with customers, with a particular emphasis on retention, and ultimately to drive sales growth.

Customer loyalty:

Customer loyalty is a very successful business strategy. It entails giving consumers value that extends beyond the product or service itself. It is often provided through incentive-based programs such as member discounts, coupons, birthday discounts, and points. Today, most businesses have some kind of incentive-based programs, such as American Airlines, which rewards customers with points for each trip they take with them.

Digital:

A digital strategy is a strategic management and a business reaction or solution to a digital issue, which is often best handled as part of a broader company plan. A digital strategy is frequently defined by the application of new technologies to existing business activities and a focus on enabling new digital skills for their company (such as those formed by the Information Age and frequently as a result of advances in digital technologies such as computers, data, telecommunication services, and the World wide web, to name a few).

Disruptive banking:

The banking industry's disruptors are changing the norms that have been in place for decades. These new regulations, however, will only be effective until the next round of disruption occurs. Banks and credit unions must thus be nimble and responsive. We need audacious tactics. 'Disruptive Innovation' is a term that refers to the process whereby a product or service establishes a foothold at the bottom of a market and then persistently climbs up the value chain, ultimately replacing existing rivals.

Mobile first behavior:

It is intended to mean that as a company thinks about its website or its other digital means of communications, it should be thinking critically about the mobile experience and how customers and employees will interact with it from their many devices. The term is “mobile first,” and it is intended to mean that as a company thinks about its website or its other digital means of communications, it should be thinking critically about the mobile experience and how customers and employees will interact with it from their many devices.

Transaction facilitator:

The business acts as an acquirer, processing payments on behalf of online merchants, auction sites, and other commercial users for a fee. This encompasses all elements of purchasing, selling, and exchanging currencies at current or predetermined exchange rates. By far the biggest market in the world in terms of trade volume. The largest multinational banks are the leading players in this industry. Around the globe, financial hubs serve as anchors for trade between a diverse range of various kinds of buyers and sellers 24 hours a day, save on weekends.

Micropayment:

Micropayments are financial transactions involving a tiny amount of money that is frequently conducted online. While micropayments were initially intended to apply minimal amounts of money, practical systems allowing less than one dollar transactions have met with little success. One impediment to the development of micropayment systems has been the need to keep transaction costs low, which is impracticable when transferring such tiny amounts, even if the transaction charge is just a few cents.

Technology trends:

New technologies that are now being created or produced in the next five to ten years will significantly change the economic and social landscape. These include but are not limited to information technology, wireless data transmission, human-machine connection, on-demand printing, biotechnology, and sophisticated robotics.

Online marketplace:

An online marketplace (or online e-commerce marketplace) is a kind of e-commerce website in which product or service information is supplied by various third parties or, in some instances, the brand itself, while the marketplace operator handles transactions. Additionally, this pattern encompasses peer-to-peer (P2P) e-commerce between businesses or people. By and large, since marketplaces aggregate goods from a diverse range of suppliers, the variety and availability are typically greater than in vendor-specific online retail shops. Additionally, pricing might be more competitive.

Innovative retail banking model:

The design has no resemblance to a bank but more to a coffee shop. There is free wifi and a large number of iPads accessible for internet use. Automated teller machines (ATMs) are located around the perimeter of the coffee shop, allowing customers to conduct financial transactions. The workforce consists of a mix of coffee shop patrons and banking personnel who circulate and make themselves accessible. If you need services not available through an ATM, fully trained bank personnel can offer all services typically available at a conventional bank branch.

eCommerce:

Electronic commerce, or e-commerce (alternatively spelled eCommerce), is a business model, or a subset of a larger business model, that allows a company or person to do business via an electronic network, usually the internet. As a result, customers gain from increased accessibility and convenience, while the business benefits from integrating sales and distribution with other internal operations. Electronic commerce is prevalent throughout all four main market segments: business to business, business to consumer, consumer to consumer, and consumer to business. Ecommerce may be used to sell almost any goods or service, from books and music to financial services and airline tickets.

Peer to Peer (P2P):

A peer-to-peer, or P2P, service is a decentralized platform that enables two people to communicate directly, without the need for a third-party intermediary or the usage of a corporation providing a product or service. For example, the buyer and seller do business now via the P2P service. Certain peer-to-peer (P2P) services do not include economic transactions such as buying and selling but instead connect people to collaborate on projects, exchange information, and communicate without the need for an intermediary. The organizing business provides a point of contact for these people, often an online database and communication service. The renting of personal goods, the supply of particular products or services, or the exchange of knowledge and experiences are all examples of transactions.

Easy and low-cost money transfer and payment:

This business model makes money transfers and producing and collecting prices more affordable and accessible to consumers. Sending and receiving the money to pay wages, settle business transactions, paying school fees, or supporting family members is typical for companies and people alike. It necessitates fast, dependable, and cheap money transfer services that enable money to be placed in one location and withdrawn in another in urban and rural regions alike.

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