Are you wondering the pandemic will affect the flow of money transfers for the year 2021? Here is a quick look at how the pandemic can affect your money transfer business and what you can do to keep your money transfers flowing smoothly.
Will the Current Pandemic Affect Money Transfers in 2021?
The COVID-19 pandemic has had a huge impact on the world. Other than the impact the virus has had on people’s health, the virus also hugely affected the economy of many countries around the world. Many industries, including ones that offer secure payment services, faced a lot of struggles during 2020.
However, it is likely that the problems can still occur in 2021. How much cash migrant workers will send home is expected to reduce by about 14% in 2021. Additionally, remittances flows to the low and middle class countries will likely decline by 7.5% in 2021.
How Can I Prevent the Pandemic from Affecting the Flow of Money Transfers?
It is important to prepare for the possible impact that money transfer services may experience during 2021. Some things that you can try include:
Offer Digital Services
The pandemic has turned almost everything digital. Most people work from home, and a lot of people are opting to use digital services instead of getting them done in person. For instance, more people prefer using online banking options over in-person banking options because it is safer.
You can set up a website or a mobile app for your money transfer business and inform your clients about it. Try to market your digital services as much as possible. That way, people will be able to continue using your money transfer services safely.
Another bonus is that you will likely benefit from offering digital services well-past the pandemic. Many people prefer to use websites and mobile apps for a payment transaction. It is convenient and quick, and it can save you and your clients money. Therefore, investing in digital services is well worth it.
Offer Better Rates
The pandemic affected a lot of people financially, especially the migrant workers. Many migrant workers may end up sending less money back to their hometowns. Additionally, people may not send as much payments as they used to because they lack the funds. So, how do you convince these people to use your services when they want to send money or make payments?
Offering your current and prospective clients competitive rates can help them keep doing business with you. The pandemic has encouraged people to save as much money as possible, so you need to give them a good reason to use your services. Try to offer a competitive rate for your money transfer services; try to aim as low as possible to compete with more popular services, but make sure that it will not affect your business.
The pandemic will likely affect the flow of money transfers during 2021 because the economy may not experience a quick bounce back. You can try to adapt your money transfer business to get through the year.