Sendwave Launches Bank Accounts For US Migrant Users

Sendwave, a fintech company that specializes in global remittance services, has said that it will allow existing users to access an FDIC-backed checking account. This account will be accessed using a new service that is known as Sendwave Pay.

Sendwave launches bank accounts for US migrants

These bank accounts for US migrants have been created through a partnership deal with Piermont Bank. Sendwave Pay will allow depositors to access up to 0.51% monthly interest on the account balance.

The platform will also support debit cards for daily transactions, with the company saying that this new service will be released on June 27. The CEO of Sendwave’s parent company, Mark Lenhard, said that the platform would allow migrants based in the United States to access financial services.

“Sendwave Pay enables US-based migrants to take their money farther [and] creates financial empowerment through interest schemes and competitive benefits,” Lenhard said.

Zepz, which is also the company behind the WorldRemit money transfer brand, acquired Sendwave in 2020. Sendwave currently enables digital remittances across East and West Africa.

Sendwave plans to make the process of sending funds across Africa much easier. It operates as an FDIC-insured bank, with the account owners having access to their funds through a debit card.

The account holders can also save up to 25% on the transaction fees on the remittances made to Kenya, Ghana, and other countries in Africa. Users will also receive reimbursements when they pay international transaction fees using the Sendwave Pay debit card outside the US. Users also access a 0.51% monthly interest on the money held in the Sendwave Pay account.

Benefits of international remittances

Sendwave said that allowing migrants to access bank accounts was an important step for the company to establish itself while also enabling migrants to achieve financial autonomy. Sendwave Pay will allow customers to access cross-border wealth, with the platform saying that the bank addressed customer needs better than the standard bank account.

The product lead at Sendwave Pay, Etic Huynh, said that over the last decade, the way people used and accessed money had significantly changed. He noted that Sendwave Pay was created to address customer needs and meet their needs to manage money for themselves and others abroad.

Many migrants across the United States face challenges in accessing banking services, per reports by the Consumer Financial Protection Bureau and the Federal Reserve Bank of Cleveland. The challenges faced by these users are attributed to a wide range of reasons, such as fees, minimum balance requirements, and bank policies.

The challenges faced by these migrants not only affect the workers, but they could also cause an impact on millions of people globally who depend on remittances. A report by Reuters noted that 800 million people globally received money from family and friends to pay for essential services.

The demand for international remittances is also significantly high. In 2021, global remittances reached a record of $733 billion. As such, there is a need for fintechs to tap this industry.