Can CashApp/Zelle money transfers replace that of WU, CAM, Unitranfer, etc.?

In addition to utilizing Western Union, Ria, Unitransfer, SendWave, CAM, and others to send funds to loved ones in Haiti, Haitians abroad can now use CashApp or Zelle. The latter boasts lower transaction fees and entices clients with its ability to pay out in dollars while waving the standard $1.50 fee for transfers of any amount.

Apostrophe Strategic Consulting assessed whether the newly emerging Zelle and Cash App money transfers posed a challenge to traditional money transfer services. Over nine days, they interviewed 37 traditional money transfer business owners, focusing on their awareness of the new business model, its impact on their profits, and its potential for sustainability amidst its rapid expansion across the country.

Here are the key findings:

Lack of Awareness and Impact

Surprisingly, a notable portion of surveyed business owners were unaware of the emergence of these new online platforms, indicating a potential blind spot within the industry. While some reported minimal impact on profits, others acknowledged a slight decrease due to competition from online platforms.

Customer Behavior and Trust

Customers who prefer online transactions tend to bypass physical stores, while those who value in-person transactions continue to rely on traditional services due to trust and reliability factors.?

Sustainability Concerns:?

Some business owners expressed skepticism about the sustainability of the online model, citing challenges such as reliance on paying out in US dollars and regulatory oversight.

Government Regulations and Oversight

Traditional business owners emphasized the importance of government regulations in ensuring transaction security and legality, raising concerns about the perceived weaknesses in government oversight of online transactions.

The bottom line?

Despite challenges posed by online platforms, traditional businesses are confident in retaining customers through established relationships,? continued vigilance, trust, adaptability, and adherence to regulations that are essential as the country’s political and financial landscape evolves.

Apostrophe Strategic Consulting's survey illuminates the dynamics between traditional money transfer businesses and emerging online models. While challenges exist, traditional companies should maintain relevance by prioritizing customer trust, reliability, and regulatory compliance.?

Bobb Rousseau, PhD