Lycamobile has launched a new service to target the ‘$586bn’ money transfer market
Lycaremit is the MVNO’s latest money transfer offering, which it describes as a ‘low cost alternative to traditional companies and high street agents’. Lyca Group Chairman, Subaskaran Allirajah explained that the step into the remittance market is part of its ongoing plans to step up the ‘vital services’ it offers.
‘We’ve built our business over the past decade by providing vital services primarily to ethnic communities across Europe, from mobile calls and data to financial services and travel bookings,’ he said. ‘We believe Lycaremit will now expand that offering by allowing us to provide a highly competitive service we know our customers will benefit from.’
The service will enable users to transfer money via a smartphone to over 50 countries, with beneficiaries able to collect money via mobile wallets, banks or cash collection points.
Lycamobile will take advantage of its ethnic customer base to appeal to the ‘vast majority’ of the global remittance market that it claims comes from ‘high-income countries to developing countries’. This is a pattern that the MVNO believes is mirrored by the behaviour and location of its existing customer base.
The announcement makes Lyca the latest MVNO to move into money remittance, a market which TransferTo’s CEO believes has been widely left to virtual networks.
Speaking to Mobile recently Eric Barbier said: ‘A lot of the operators in the UK have given this market to the MVNOs. As far as I understand, MNOs are not being aggressive, and we have seen this in a few markets in Europe where they prefer to leave MVNOs to target this space.’