InstaReM CEO Prajit Nanu Talks About Payments Innovation in Southeast Asia
Ripple News

InstaReM CEO Prajit Nanu Talks About Payments Innovation in Southeast Asia

 

During a recent visit to Ripple HQ in San Francisco, Prajit Nanu, the co-founder, and CEO of InstaReM talked about financial inclusion efforts in Southeast Asia, as well as the need to improve remittance speeds and to reduce costs.

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In a recent Ripple Insights article, the team talked about his visit to the headquarters. Reporting Nanu’s views about promoting financial inclusion, the article said:

“In our conversation, he put onus on the global payments industry to make remittance payments more affordable—citing an average of 7-8 percent in fees on remittances worldwide with even higher fees in some Southeast Asian markets where the need for affordable money transfers is the greatest.”

Adding to it:

“To further illustrate his point, Prajit shared stories of InstaReM customers—people who send $400 of the $500 they earn every month back home, only to see it getting eaten up in hidden fees or used inappropriately. He wants to see the global financial players help build an ecosystem of companion products, including insurance, that can be used in tandem with remittances to improve financial stability.”

Moving on to improving the speed and cost of remittances, the article said:

“For his part, Prajit is focused on helping InstaReM customers by reducing the cost and enhancing the speed of its remittance services. By improving both, InstaReM is able to deliver greater impact while also expanding its market share.”

Adding to it:

“Prajit went on to explain that Ripple is a big part of this effort and an important partner to his team. For InstaReM, Ripple eliminates the need to prefund accounts in a number of countries, enabling real-time transactions at a fraction of the cost compared to the traditional methods.”

Continuing with it:

“Prajit acknowledged that a lack of liquidity is one of the biggest challenges for InstaReM. Its sheer size and distribution presents a problem in that they have pockets of pre-funded accounts around the world. Moving that money between markets takes time and costs money. With Ripple, InstaReM can minimize or eliminate this capital investment.”

Moving on to cross-border enterprise payments, the article said:

“Prajit pointed out that InstaReM serves enterprise customers as well as retail consumers. Importantly, he noted both customer segments present the same prefunding challenges to his business.”

Adding to it:

“In particular, enterprise customers can issue transactions ranging from $10 to $30,000. The smaller amounts are harder because the cost relative to the size of the transaction is high. And using batch transactions to lower the cost creates a longer delay.”

Continuing with it:

“Through InstaReM’s use of Ripple in the Philippines and Mexico corridors, InstaReM has been able to eliminate prefunding requirements and now offers faster remittances at lower cost . This ability allows InstaReM’s enterprise and consumer clients to send any amount of money instantly without batching, increasing transaction volume overall.”

Finally moving on to FinTech innovation in Southeast Asia, the article said:

“With 80 percent of the volume in digital asset trading coming from Asia, Prajit was quick to suggest that this region has an appetite for innovation and perhaps the greatest need for a better payments infrastructure.”

Adding to it:

“He said Asian companies are focused on building wallet-based payment ecosystems. For instance, Go-Jek has built 20+ businesses around its Go-Pay wallet for everything from on-demand beauty services to telehealth.”

Prajit pointed to two upcoming innovations in the region, the first one being a single QR code instead of individual payment options at checkout. The second was Alipay, which now has wallet technologies which can be used to pay for just about everything. The volume of funds it loans sums up to more than 60 million.

The article then said:

“Ultimately, Prajit is very excited about the pace of and prospects for innovation in Asia. He sees blockchain as being a key part of this, especially for its ability to make micro-transactions—loans, payments, remittance—much more efficient and transparent.”

In conclusion, the article said:

“And in a region primed for advances in both consumer and enterprise remittances, he sees enormous opportunity for the use of Ripple’s solution to address issues of liquidity, speed of implementation, and the cost of capital. That success will lead to even greater and more impactful financial inclusion efforts.”

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Syed Ali Mudassar
It was when he was pursuing his graduation in Computer Science that he found his flair for writing about new and existing technologies. He likes researching about technologies and how they could help people. Currently, he works as the Content Manager at CoinFrenzy, a leading blockchain news, and media publication website.
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