RETAIL giant Puregold Price Club. Inc. is entering the lucrative money transfer business, targeting overseas Filipino workers (OFW) with Pure Padala, a remittance service powered by Globe GCash.
”Every year the remittance business gets bigger. Last year it was around $24 to $25 billion,” Puregold President Vincent Co told reporters on Wednesday.
“Before we entered the remittance business we saw to it that wasn’t just for the sake remittances but also having the touch of innovation,” Co added.
“Twenty percent to 35 percent of remittances sent by an OFW will go to waste—into vice—instead of going to the basic needs of their family,” Co noted.
“The innovation we have is that every time an OFW makes a remittance, the customer may choose to specify the needs to be met by the money transfer – like groceries, utilities and education,” he said.
In Pure Padala, an OFW can give the specific purpose of the money and the receiving family may claim the equivalent amount in goods or services.
Co said the recipient won’t be able to redeem the amount of money in cash, and the sender may give a specific order like no liquor or cigarettes.
“The game-changer that we see here in this mechanism is that we can make sure that family of the OFW will not get hungry anymore, because the remittance will go straight to the recipient based on the specific orders of the sender – whether for groceries, utilities, or education,” he said.
Pure Padala is primarily riding on the platform of GCash which has forged many tie ups all over the world.
Puregold has also partnered with various schools so that Globe GCash automatically remits the tuition fee directly to a specific school.
Pure Padala can also be used to pay water, phone, electricity and credit card bills.
Co noted the competition in the money transfer business is tough.
“The only way we can grow is to tap a new market. This new market has an average basket size of P10,000 to P20,000,” he said.
Pure Padala will start operating on July 12. No service fees will be charged for the first 3 months, but Co said the regular transactions will be the cheapest in the market.