Bancolombia, Colombia’s foremost player in remittances, and TerraPay, a leading global payments network, have inked a pivotal bank-fintech partnership agreement. This strategic alliance aims to transform cross-border remittances, ensuring Colombians living abroad can send funds securely, conveniently, and in real-time to their loved ones back in Colombia.
A Joint Commitment to Financial Inclusion
At the heart of this collaboration is a shared commitment to enhance financial inclusion. By leveraging TerraPay’s extensive global reach and agile infrastructure, which already connects over 100 remittance companies worldwide and facilitates payments between 200+ sender countries and 120+ receiver countries, the domestic remittance market in Colombia is set to undergo a remarkable transformation.
Empowering Bancolombia’s Capabilities
For Bancolombia, this partnership opens up new horizons. Currently holding agreements with 17 remittance companies spanning 125 sending countries, Bancolombia’s network will experience exponential growth. TerraPay’s innovative payment solutions will further enhance Bancolombia’s capabilities, ensuring Colombians abroad have an even broader range of secure and efficient options for sending funds to their families in Colombia.
This groundbreaking collaboration is poised to make a significant impact on the lives of Colombians abroad and their families at home. With simplified, secure, and real-time cross-border remittances, financial support can reach its destination more swiftly, helping to improve the quality of life for countless individuals and families across Colombia.
“It is not a minor figure: thanks to these agreements, Bancolombia is positioned as the largest payer of remittances in Colombia. In 2022 alone, of the USD 9,429 million that arrived in the country, the entity paid USD 5,692. This new agreement with TerraPay will multiply these flows, especially with an ally capable of innovating with its solutions and infrastructure,” says Cristina Arrastía, Vice President of Business at Bancolombia.
However, she adds, “Beyond the growth in the way of receiving money, the greatest impact will be on people, especially those Colombians who have a family member abroad, from whom they receive resources for their sustenance in Colombia. Colombians themselves in other countries will also benefit due to the number of channels they will have available to move money to the country.”
It is expected that this new alliance between Bancolombia and TerraPay will maximize the entry of money into the country from the United States, England, Spain and other countries in Europe. Also from various nations in Asia and Africa.
Paula Andrea Valle, Director – South America, TerraPay said, “The agreement between the two companies is extremely important. Bancolombia currently has the largest share of the remittance market, which for us means reaching this market the right way with the right partner. The arrival of TerraPay in the country represents ease and effectiveness in the flow of resources globally. TerraPay is the only payments network to have 29 licenses and regulatory approvals globally, along with real-time transaction and risk monitoring capabilities, allowing us to ensure 100% compliance.”
Today, TerraPay powers the frictionless global movement of money in more than 7.5 billion bank accounts, through more than 2.1 billion mobile wallets, while ensuring that over 97% of its transactions are delivered in less than a minute.
“The impact of his delivery promise would undoubtedly increase the level of satisfaction of Colombians, especially those who have an account in Bancolombia and need this service,” concludes Cristina Arrastía, who recalls that, according to studies developed by Bancolombia, 36% of the resources that arrive from abroad are used in the country to sustain households, while 13% is directed to the payment of obligations, 7% to expenses in health and well-being, 6% to fashion, 5% to food, and 6% to travel and transport.
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