Visa and CIBC Collaborate on Sending Remittances to Digital Wallets

Visa and CIBC have formed a new collaboration to help the bank’s clients send remittances across borders more conveniently.

With Visa Direct’s money movement capabilities, the clients of CIBC and its digital banking division Simplii will be able to send money to more digital wallets in the Philippines, China, Bangladesh, Kenya and other key remittance destinations in which digital wallets are commonly used, the companies said in a Tuesday (Jan. 9) press release.

The new capability will be available in the coming months, according to the release.

“Sending foreign currency has become an increasingly important part of many Canadians’ daily banking needs — a trend that we expect will continue for years to come,” Jimmy Dinh, managing director of Direct Financial Services at CIBC Capital Markets, said in the release.

Three quarters of new Canadians send money overseas at least once a month, and 79% are looking for a more convenient way to do so, according to the release.

Digital wallets, which offer a solution to this demand, are among the fastest-growing financial instruments in the world, and they are especially valuable to unbanked individuals in developing markets, the release said.

Visa Direct provides access to nearly 8.5 billion endpoints, including more than 2.5 billion digital wallets, 3 billion cards and 3 billion accounts, per the release.

“Visa Direct enables consumers and businesses to send money cross-border with ease, and we are thrilled to work with industry leaders like CIBC and Simplii to provide even more remittance options for their customers,” Sam Fuda, vice president and head of commercial and money movement solutions at Visa Canada, said in the release.

In another recent collaboration, Visa partnered with International Money Express (Intermex) to extend Intermex’s money transfer services to more than 20 countries that it didn’t previously serve. This expansion of Intermex’s services is made possible by its expanded integration with Visa Direct.

In November, Visa and Remitly expanded their collaboration to streamline cross-border fund flows. The companies’ expanded efforts enable Remitly customers in more than 15 countries, including the United States, Canada, the United Kingdom and Australia, to push funds directly to holders’ Visa debit cards and bank accounts in more than 100 jurisdictions globally.