The business of online money transfer is one that I would like to venture in. Through currently there are some companies that offer these services, they remain largely out of reach to many people, especially the poor populace. Specifically, I see an opportunity in starting a business that offers money transfer services to citizens in developing countries. Due to the fact that many people can work online today, there is the increased chance that there will be the need to transfer funds from countries where the services are rendered – like the United States – to the respective countries where the renderers of such services are based. By business would realize its profit by charging a small commission that is proportional to the amount being transferred.
I settled on this idea after carrying out extensive research on this area. Over the last few months, I have been searching through the web to identify potential ideas that one can invest in. I took note of the fact that several companies in the developed are seeking to recruit people who can work from home. I also took note of the fact that there was a preference to recruit workers from emerging economies, because they were becoming increasingly highly skilled while remaining cheaper. This ultimately introduced the need for intermediaries, who can transfer funds from the employer to the employee, because in most instances, the employer companies avoided the technicalities of dealing with their employees directly when it can to issues of pay. It was the case in almost all freelancing companies.
There are other companies that offer these services. I am also definitely sure that there are others who plan to do so in future. However, the industry offers great potential and there are avenues for entry for new firms. As of present, many of the companies offering these services have concentrated on high end clients, because for a long period, this has been the business of elites. Veteran money transfer companies like PayPal, Western Union, Wire Transfer, Pioneer and Skrill, have been successful in this business, but following the usual model of serving high end clients. My business on the other hand would target smaller and emerging businesses – as well as individuals exporting services – from developing countries. By targeting many entities, it would be possible for me to charge a low price the transfer services, striking a blow to already established businesses – and possibly poaching several clients in the process.
As already mentioned above, I would target clients from emerging economies who are increasingly becoming exporters of products to developed nations. For instance, the Africa Growth Opportunity Act (AGOA) has made it possible for even small scale African farmers to export coffee and horticultural products to the US. With many corporate companies contemplating on venturing in Asia and African markets, they have chosen to conduct surveys to test the popularity of their products in those countries. These surveys are being administered online and the respondents being paid over the internet. This offers an opportunity for me to venture in. My idea would satisfy customers better because it would provide them with better, cheaper and more reliable way of transferring funds to them. Besides, I would go beyond my competitors have done. Most of the existing money transfer companies have limited their partnership to banks only. However, developing countries have been innovative and come up with more effective ways of transferring money. For example, the Kenyan mobile money banking by the name M-Pesa has been a highly successful model and is currently being