Faster, cheaper money transfers are coming to Canada thanks to Azimo, a digital money transfer service and one of Europe’s leading fintech companies.
Azimo, which has operated in Europe since 2012, will now enable people in Canada to send money to more than 200 countries and territories worldwide. Key destination countries include China and the Philippines, which together represent almost 35% of remittances from Canada. All new Azimo customers in Canada will receive two fee-free transfers when they start using the service.
Around 20% of Canada’s population were born overseas. The importance of immigration to Canada’s economy was underlined recently by the government's decision to open pathways to permanent residence for 90,000 people - mostly in healthcare.
Yet international money transfers, which have only grown more important for families living through a global pandemic, remain expensive. Globally, sending remittances costs an average of 6.5 percent of the amount sent, according to the World Bank.
“The average cost of a remittance sent from Canada is around 5% of the amount sent. That's far too high, and shows that the remittance market isn't working for hard-working people,” said Richard Ambrose, Azimo’s CEO.
Azimo will seek to challenge traditional banks and money transfer shops with lower prices and faster delivery times. Transfers to China and Thailand, for instance, will be delivered instantly.
“Sending money to loved ones overseas should be rewarding, not frustrating. They deserve a fast, cheap and reliable way to send money back to their country of origin. Technology allows us to offer that service,” added Dora Ziambra, Azimo’s COO.
According to World Bank data, Azimo is up to 90% cheaper than banks and traditional money transfer shops. The company intends to bring similarly competitive pricing to Canada.