OrbitRemit makes it cheaper to send money abroad

Reuters

BIG MONEY: OrbitRemit has signed a deal with China Post China's official postal service with about 400 million account holders that lets it transfer money to its 46,562 branches.

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The global money-transfer business is a world away from selling property, but three Wellington real estate agents are making a go of it.

Their company, OrbitRemit, lets members in New Zealand, Australia and Britain transfer money to overseas bank accounts online for a flat fee – rather than a percentage of the transaction.

The business is an offshoot of Tommy's Real Estate, and counts Tommy's founders Tommy Heptinstall and David Platt among its directors.

OrbitRemit director Robbie Sampson – a former Tommy's real estate agent – says members can send money to New Zealand, Australia, Britain, the Philippines, Vietnam and, as of last month, to China.

The firm has signed a deal with China Post – China's official postal service with about 400 million account holders – that lets it transfer money to its 46,562 branches.

"They are big and the great thing about them is that they are spread throughout the country. And it's not just for transfers from Chinese to Chinese, you can send money to people travelling in China as well."

OrbitRemit is negotiating with a remittance partner in the Pacific Islands – which depend heavily on money transfers as a source of income – and hopes to be in three or four "key" countries there by the middle of the year. "We see that as a critical market. We want to be able to offer a a very low-cost option into the Pacific."

It also plans to launch in South Africa, Sri Lanka, Singapore and Hong Kong in the next few months and has its sights on Zimbabwe. The company has made significant inroads in Britain, with its customer base there soon to outstrip that back home, and it is nurturing a relationship with Barclays Bank – which plans to help OrbitRemit launch in European countries where it has a presence.

Most transfers from New Zealand cost $12 plus the exchange rate costs – which OrbitRemit keeps "competitive". People sending large amounts of money overseas can usually find special deals, he says.

"But we've got pretty good exchange rates for smaller amounts of money. If you're making regular payments long-term then the savings are quite good."

Transfers from Australia and Britain cost A$10 (NZ$13) and 5 (NZ$11) to 7 respectively, plus the exchange rate fee.

The company charges a $7.50 fee for transfers under $300 to the Philippines from New Zealand.

"Filipinos are a very strong expat community," he says. "There's a huge number of them working in nursing who send a fairly significant proportion of their income home."

OrbitRemit's service has potential beyond money transfers to family and friends, Mr Sampson says.

The company will this month release a business-to-business payments service.

Kiwis living overseas who need to make student loan or child support payments to Inland Revenue can do that through OrbitRemit for free for the next 12 months.

- © Fairfax NZ News