One of the world’s most prominent payment services platform Western Union has signed a partnership deal with blockchain startup Coins.ph to make receiving cash payments easy and seamless for those living in the Philippines.
According to the Coins.ph, the affiliation between both companies will help facilitate the reception of money made on Western Union’s network into the cryptocurrency wallet that is powered by Coins.ph’s platform. The crypto wallet boasts of more than 5 million users.
Most Likely Reason for the Partnership
Coins.ph stated that the deal made between their firm and Western Union was going to allow the swift and comfortable transactions of payments in cash, in both urban and rural areas of the nation. The blockchain firm also noted that Western Union was widely used globally and customers in the Philippines using the service could receive payment from almost all nations on the globe.
The Philippines has a high number of citizens working out of the nation, numbering to about 10 million. This factor has helped increase the country’s Gross National Product due to the huge amount being sent by citizens abroad into the nation. This has cemented Philippines place in the world as one of the top nations for remittances. It’s also a growing industry. In the statement made by Coins.ph, the firm quoted Bangko Sentral ng Pilipinas (BSP), the country’s central bank, as saying that the number of payments made monthly by Filipinos living in diaspora had reached a staggering $2.7 billion last July. The Central Bank also noted that that amount was increasing by 3% every year.
The senior vice president and general manager, Global Money Transfer, Asia Pacific, Western Union, Molly Shea, said that;
“With this collaboration with Coins.ph, we are delighted to offer customers in the Philippines with an unmatched depth of services and capabilities, and convenience right at their fingertips.”
Coins.ph serves as a financial institution to Filipinos by offering an online wallet to citizens who do not even have a bank account to make payments and buy cryptocurrency. The nation’s central bank has granted the firm with a license to operate with both digital currency and as an Electronic Money Issuer. Coins.ph co-founder and CEO, Ron Hose stated that;
“There are many overseas Filipino workers who send money back home regularly and are always looking for additional remittance options that will make it most convenient for their loved ones to receive money.”
Conditions for Using Coins.ph’s Western Union Service
Coins.ph noted that users must complete an identity verification process usually referred to as KYC (Know Your Customer) before using their online wallet services. Once this verification is done, the user can then be able to get reception of payments made on Western Union into their wallets. The firm also noted that 100,000 Philippine pesos (almost $2,000) was the limit that could be received monthly.
It’s quite interesting that a payments giant and a cryptocurrency firm have paired up. Western Union has hinted at partnering with top US wallet and exchange, Coinbase and Ripple, the third most dominant cryptocurrency. These hints have, however, not materialized into deals.