MoneyMatch is a cross-border transfer service that helps small and medium-sized enterprises (SMEs) in Malaysia pay their global suppliers. As the country’s traditional financial institutions were charging high FX rates on the smaller volume transactions typically requested by SMEs and individuals, MoneyMatch partnered with Ripple to offer cheaper and faster payments to more than 120 countries around the world.
“Banks typically focus on larger customers who are sending higher volume transactions and can afford higher fees,” said MoneyMatch CEO and Co-founder, Adrian Yap. “SMEs don’t have much choice other than to accept these same rates, which adds to the cost of dealing with foreign suppliers. We worked with Ripple to create an improved cross-border payment process that offers these customers better rates and faster transaction times.”
Yap first became aware of this significant gap in the market while working in treasury roles at some of Malaysia’s biggest financial institutions. Not only did he see how banks prioritized the needs of enterprise customers over SMEs, he knew that they were generating a lot of revenue from high-cost FX transactions.
“All the banks charged the same fees,” explained Yap. “They were happy simply generating these revenues instead of trying to increase market share by reducing rates. We believed that offering lower prices and a simpler way to send money abroad would really benefit SME customers and allow us to capture this valuable market. Our challenge was that we were a small start-up from Malaysia, which is not a top-of-mind market for the rest of the world. We needed to develop relationships with banks and payment providers all over the world but didn’t have the required credibility or transaction volumes.”
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