Currencycloud gives Tazapay the key to open up new markets

Background

Singapore-based Tazapay is a cross-border payments start-up, focused on using local payment methods to build a global business-to-business network. Founded in 2020, their goal is to create trust in cross-border transactions through a range of solutions that include escrow agreements, digitizing trade agreements, and transparency to every transaction.

The Challenge

The ability to seamlessly convert, hold and send within the Asia market is key to Tazapay’s global goals. On Tazapay’s platform, a buyer and a seller create an escrow agreement.  From this, Tazapay collects money from the buyer, holds the money, and releases the money to the seller. However, Singapore-based Tazapay had to ask buyers based outside of Singapore to make wire transfers to them: this was creating a lot of friction and wasn’t the seamless cross-border experience Tazapay wanted for its clients.

Additionally, the Asia-Pacific market demands that for some jurisdictions, certain pieces of buyer information are required when cross-border transactions are made which Tazapay couldn’t collect. Because of this, Tazapay couldn’t send money to the Philippines and India meaning these key markets were closed to them.

Solution

Having been in the payments industry for over 20 years, Tazapay CEO, Rahul Shinghal knew Currencycloud would be able to help the company achieve its goals.

Using Currencycloud Direct, Tazapay was able to seamlessly collect money as if they were a local from buyers in the US, Canada, the EU, and the UK. They then use these funds to settle to their sellers.

Tazapay can now cater to new use cases. Being able to provide the required information such as the buyer’s name in the final remittance is a gamechanger for Tazapay: they now meet the compliance regulations of certain corridors, opening up the doors to new markets including India and the Philippines.

Currencycloud Direct opens up new markets for Tazapay. The company now has the ability to collect money in its own name, as well as the ability to create named accounts for their clients. This key capability means Tazapay can now access and take care of its customers who have the compliance requirement that their client can only pay into a named bank account (known as fourth party payment).

Because of Currencycloud’s scale, FX rates are low and competitive, which allows Tazapay to pass on attractive FX rates to its customers.

Importantly for a B2B payment company, Currencycloud offers Tazapay a higher payment limit than other providers who are geared towards retail and therefore offer lower credit limits.

Tazapay CEO, Rahul Shinghal notes that Currencycloud is the only provider his business has found that offers the ability to insert vital information such as the buyer’s name into the remittance message. Says Rahul, “It’s important for us as a Fintech company from whom  we are able to white label this service, and offer it as an embedded service from Tazapay. Currencycloud has given us this capability.”

RESULTS

Since first using Currencycloud Direct in December 2021 Tazapay has been able to access markets they couldn’t before like India and the Philippines. They are more competitive because they can offer their clients low FX rates. 

The benefits to Tazapay and their customers using Currencycloud Direct:

REVENUE GROWTH

Tazpay can now insert the ultimate remitter’s information, so they have been able to send money to countries they weren’t able to earlier, opening up new revenue streams for them, as well as offering their clients additional use cases and the ability to collect money in named accounts.

NEW CORRIDORS

Currencycloud has streamlined the collections and cross-border payments for the UK, US, EU and Canada to Singapore for Tazapay.

LOW FX RATES, HIGH LIMITS

Tazapay can offer attractive FX rates to its customers. Currencycloud gives Tazapay a higher payment limit than other providers, meaning they can offer a better service to their target market: the B2B payment space.

REASSURANCE

The Currencycloud Direct solution is white labeled, meaning Tazapay can offer the service as a Tazapay service, providing reassurance to its clients, and positive branding for the company.

COMPLIANCE

The ability to add vital information such as the buyer’s name to the final remittance message has made it easy for Tazapay to remain compliant in the markets they operate in.

EASY DISBURSEMENT

Currencycloud Direct makes it easier for Tazapay to make collections and to convert currencies within the wallet when making cross-border transactions.

PEACE OF MIND

Currencycloud enables push notifications so Tazapay and its customers know the status of all its transactions in real time. This has reduced the number of disputed transactions and chargebacks.