Freedom From Borders

With the Ogloba platform, individual card accounts can maintain multiple currency balances in purses denominated in currency, or points. Ogloba solutions are globalized to allow retailers to issue in one currency and redeem in another. The system allows retailers to issue and print cards with no currency and allocate the currency when the cards are ordered and shipped. The function is convenient for multi-countries retailers managing a central or regional card inventory.

Cross-border is also about money transfer, a segment also named remittances market. People often take jobs overseas, and international money transfers allow them to send money home to their loved ones, as well as pay monthly bills that they still have back home. The world remittances market is above half a trillion US$ every year. The average payment per migrant is about US$ 2,500 per year.

Those who move from one country to another might need to send money back home to their families so they use an international money provider like Western Union, Moneygram or Sigue. The World Bank established the first international database of remittance prices. The fees for such services depend on the amount sent and the destination country, and the service is often considered to be expensive.

Ogloba has helped multi-countries retailers to offer their customers a cheap, even free, method of transferring funds to friend and family, while making sure the recipient spends the money at the distant store owned by the retailer. The amount sent in an international money transfer is regulated both by the sending and receiving countries. Such service is restricted by the maximum amount which can be loaded on to a gift card, and the location where the money can be spent. For this reason it does not fall into the strict “Know-Your-Customer” regulations (KYC) imposed by most of the governments of the receiving or sending countries which, are required to record the ID of the customer.

How it works

A typical scenario would be something like this: A retailer in Indonesia issues and sells gift cards to a sister company or third party retailer they have contracted in Saudi Arabia. Cards are sold at a discount to the Saudi retailers who, are considered to be a B2B partner in the gift card program of the Indonesian retailer. The cards are labeled in Rupees and are displayed on the shelves next to the local Saudi cards. Once purchased, a card is activated at the till or online, in real time, host to host.

The client sends the card by post, by email or from the retailer’s smartphone app. The relatives in Indonesia redeem the card at the till. The money has been transferred for free. If the relatives want to collect cash, they pay a small percentage depending on the willingness of the Indonesian retailer to offer such service, and the local remittance regulations.