Luup International, a mobile payments solutions provider, is set to open a mobile enabled remittances corridor between the UAE and Indonesia with the cooperation of PT Koinstar Dhasatra Indonesia Remittance. Dhasatra is an Indonesia-based company with a network of 120 banks and 5,000 post offices around the country.
Luup has claimed that, when the service launches next year, over 300,000 Indonesians living in the UAE will be able to transfer money to their families and other recipients in Indonesia directly from their mobile phone handsets. Luup has said that its technology enables users to transfer cash around the world using special short codes, sent through SMS messages, directly from their bank accounts, payroll cards or money exchange accounts to their beneficiaries. The people receiving the funds can cash-out the transfers at ATMs, post offices or money exchange houses.
Nicolas Dharmawan, president director of Dhasatra Indonesia Remittance, said: “There a large, untapped market for all parties involved in the remittances sector, be they banks, money exchange companies and post offices. Not only will this innovative service provide remitters and their beneficiaries with low cost, secure and high-speed remittance services, but it will bring new revenue channels to all parties which execute the transactions.”
Morten Hofstad, regional director of Middle East and Africa at Luup, said: “Banks today need new revenue sources especially on the debit side of the business, given the prevailing liquidity crunch. Our technology platform acts as a facilitator enabling banks to growth their business with fee-based, transaction driven remittances, thus generating new sources of revenue.”
