TerraPay, a leading global payments network and Bancolombia, Colombia’s largest player of remittances announced the signing of their contract.
As part of their collective commitment to enhance financial inclusion, the two companies will enable seamless cross-border transfers, connecting Colombians living away from home with secure, innovative, real-time solutions to send funds to their loved ones in Colombia.
TerraPay’s reach and agile infrastructure, connecting 100 remittance companies in the world, enabling the flow of payments between 200+ send countries and 120+ receive countries, is set to strengthen the domestic remittance market. At the same time, leveraging TerraPay’s innovative payment solutions will enhance Bancolombia’s capabilities & reach exponentially, keeping in mind that today it has agreements with 17 remittance companies, with a scope of 125 sending countries.
“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.