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As expected, and following a raise of a record $115 million dollars completed in Hong Kong where the business is headquartered, fintech startup TNG is extending its strategic global money transfer partnership with Tranglo Europe Ltd, the cross-border gateway specialists, into the UK.
At the same time TNG will invest $20 million US dollars in the launch of an accompanying e-wallet service.
The company, which provides services that include cashless electronic payment, P2P money transfer, global cash withdrawal, global remittance, bill payments, SIM card airtime top-ups, and e-coupon redemption and e-ticketing, is amongst the first Asian fintech companies to try to crack the UK and European markets.
TNG, whose recent raise gives the company a valuation of $565m million, operates a Global E-Wallet Alliance and its UK wallet will be thirteenth to join, giving it access to nearly all of the different services TNG provides.
The “know-how” to roll out e-wallet platforms
Mr Alex Kong, Chairman and CEO of TNG, commented:
“As a global market leader with the “know-how” to roll out e-wallet platforms, we will ride on the success of TNG Wallet in Hong Kong and duplicate our expertise and experience in Europe. The launch of the UK e-wallet will demonstrate TNG’s continued innovation to meet the needs of UK consumers initially, and then expanding to the rest of Europe.”
Mr Kong added that the UK is consistently regarded as one of the top ten remittance sending countries in the world, but that consumers are still reluctant to use remittance companies because they are not perceived to be secure or cheap.
TNG, he says, “being a regulated financial services entity and with its suite of remittance services using the latest technology and transparent pricing, will change all that”
Outbound remittance from the UK tops £16 bn
The World Bank estimated outbound remittances from the UK to be approximately £16.5 billion per annum, the majority of which is sent to the Middle East and Asia. TNG believes that by promoting global financial inclusion they will be able to reach the “unbanked” sector of the population, many of whom do not have bank accounts but are prepared to use an e-wallet and mobile fintech services to make overseas money transfers.
TNG will partner will Tranglo Europe Ltd in the UK, as they do in other countries. Tranglo CEO and Founder Mr Hui Yong Sia, said that:
“We are excited to embark upon the next phase of our partnership with TNG to digitise our customers’ financial needs. Combining TNG’s highly secure and diverse functionalities and Tranglo’s proven capabilities in global money transfer, we will enable instant, convenient and reliable flow of remittances between the UK and Asia.”
TNG has generated more than $1 billion worth of transactions in the two years since it launched. Its monthly transaction volumes are showing double digit month-on-month growth, and Kong says:
“The launch of the UK e-wallet will demonstrate TNG’s continued innovation to meet the needs of UK consumers initially, and then expanding to the rest of Europe.”
Hong Kong and UK government sign fintech co-operation agreement
At the same time Hong Kong’s HKSAR government has signed a fintech co-operation agreement with the UK to foster collaboration between the countries and promote financial innovation.
The agreement was signed by Special Representative for Hong Kong and Trade Affairs to the European Union Shirley Lam, and Director General for Financial Services of the UK Katherine Braddick.
James Lau, secretary for financial services and the treasury said:
““With strengthened co-operation with the UK in FinTech development and promotion, we hope to see Hong Kong’s home-grown fintech firms grow and expand their business to the UK. We also welcome UK FinTech firms to establish presence in Hong Kong and to use Hong Kong as a gateway to tap into the Mainland and Asian markets.”
TNG’s Alex Kong welcomed the bridge agreement, which will collaborate across government, regulator and industry, commenting:
“With strengthened co-operation with the UK in fintech development and promotion, we hope to see Hong Kong’s home-grown fintech firms grow and expand their business to the UK. We also welcome UK fintech firms to establish presence in Hong Kong and to use Hong Kong as a gateway to tap into the Mainland and Asian markets.”
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