International payments may not be something at the top of every mobile user’s list of necessary capabilities, but they’re for those working outside of their home countries. For Boom Financial, formerly M-Via, an easy way to send money home via a mobile phone was a key driver in its launch and funding initiatives.
The company’s strategy must be working, as Boom Financial has secured $17 million in funding from Digicel (News - Alert) Group, RRE Ventures and Matt.org, according to a Gigaom report.
With this backing, Boom Financial is in a clear position to scale and strive toward its goal of serving as the primary banking brand for those underserved consumers and immigrants attempting to send cash back home.
The need for this service is apparently great as Boom Financial has raised more than $30 million to date. For Digicel, the investment is not only monetary, but strategic support. The company serves as the largest carrier and a trusted brand in a number of Caribbean countries.
Given Digicel’s reputation in Haiti and Jamaica, and the fact that Boom is focused on driving revenue in each, the two are well matched.
Now for the nuts and bolts of the transaction: Boom is offering an alternative to traditional wire payments – one based on mobile technology. Users can sign up for an annual account at $25, and pay just $2 each time they make a deposit. When it’s time to make a transfer, there is no added charge.
Competing companies place a charge on each transfer.
Boom Financial customers will be able to add money to their accounts at 15,000 different locations. Payments can be authorized directly from a cell phone. More than 100,000 ATMs are connected to the network, allowing recipients to pick up their cash using the Boom Financial debit card.
Given the more than $5 billion a year in cash remittances moving from the U.S. into Central America and the Caribbean, the time is right for Boom Financial to offer a simpler solution.
Bill Barhydt (News - Alert), president and CEO at Boom Financial, “We created Boom as a mobile bank account to allow this [immigrants] to replace those cash services with a very simple bank account attached to their phone that would allow them to do free unlimited money transfers home or another relative in the United States.”
Barhydt joined Erik Linask on the TMC (News - Alert) Roadshow in San Jose. To learn more about Boom Financial and what they’re doing for cash-based consumers in the U.S., check out the video above.
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Edited by Braden Becker
