IDT Corporation (NYSE:IDT) said today that it has established an international remittance clearinghouse (RCH) for mobile network operators.
The RCH facilitates connectivity between traditional, cash-based, money transfer operators and mobile wallets utilizing IDT's economical transaction settlement and foreign currency exchange services. These services will enable mobile network operators to expand their reach particularly into unbanked immigrant populations in developed countries.
IDT will launch RCH services with Smart Communications, Inc. and Globe Telecom in the Philippines. Smart and Globe serve about 69 million subscribers and nearly 10 million mobile wallets in aggregate. Utilizing IDT's RCH, Smart Money account holders and Globe's GCASH account holders will be able to receive proceeds from traditional cash based money transfer transactions and be able to use those funds to make payments or withdraw cash in minutes.
"Our remittance clearinghouse enables mobile network operators to economically access the traditional international remittance flows and expand the reach of their mobile wallet infrastructures," said David Weiss, EVP, Global Banking and Network Products for IDT.
IDT Financial Services (IDTFS) Ltd, a licensed bank headquartered in Gibraltar, will conduct all banking related activities for the RCH including transaction processing, foreign exchange management and settlement of funds within the ecosystem. IDTFS will also assure regulatory compliance and integrity for remittance clearinghouse operations.
Remittances initiated by immigrants in developed countries are a large and growing segment of the approximately $325 billion dollars in global remittances sent annually to developing countries. IDT plans to leverage its relationship with over 200 mobile operators worldwide, its banking capabilities provided by IDTFS, and its worldwide distribution reach serving immigrant populations to enable remittances from developed countries to developing countries on a global scale. Potential RCH clients include both carriers and traditional cash-based money transfer organizations.