Several years ago, if you told someone that you were doing a business that involves transaction in multiple currencies, the person would likely assume you have some big working capital, structure or connections. But thanks to the digital age, and with the advancement of cryptocurrencies, young people can now think of innovative solutions that does not require huge capital investment.
There are a lot of simple businesses that young people can set up now from the comfort of their room, without building a physical structure to accommodate customers. One of those business is the Remittance business.
What is Remittance?
Remittances refer to the money that migrants send home to their families and friends. Many people move to a new country for work but still have close ties to their home community. They send a portion of their earnings back home to help support their loved ones. Remittances provide a crucial lifeline for many families in developing countries.
The remittance industry has also grown a lot thanks to new technologies that make it faster, cheaper and easier to send money internationally. According to the World Bank, migrants send over $700 billion US dollars back home every year! That's a lot of money that helps pay for important things like food, housing, education and healthcare. Remittances help lift people out of poverty and improve living standards. They also encourage new investments in small businesses, which boosts the local economy.
Remittances also depend on migration patterns. In the past 5 years, the number of young professionals that have migrated from Nigeria to other countries has been astronomical and unprecedented. This has even become much more evident in certain industries(banking and medical), as these professionals leave in droves, with their most immediate family members. This means that there is already going to be a increased demand for Remittance services, because these migrants will definitely want send funds home to take care of dependent relatives.
Why will the demand for remittance increase?
1: Exchange rate disparity: Although most of the migrants get higher paying jobs in their new location, the real reason they are able send funds back to their home country is because of the exchange rate disparity . For example, a banker in Nigeria that earns #300,000(less than $500), may decide to migrate to the United States, and start with a blue collar job that pays $10/hr. Assuming working 8hrs/day= $80; for a 5 work day he would have made $400 a week, and $2000 a month. This amount is about 4 times what he would have earned, and there is even a possibility for more, as overtime rates would be added. If the individual lives a modest lifestyle, he can afford to save up to $500 a month, which is even more than what he was earning. Knowing the difference in exchange rate, he can plan to save money to buy a build a property in Nigeria, or if he has loved ones in Nigeria, he can send money too for their upkeep.
The above situation is not peculiar to Nigeria alone, but to most developing countries.
2. Increase migration from Nigeria to other countries: In recent years, the ‘Japa syndrome’ has become a bug for a lot of Nigeria. Some of the reasons that people give for migrating from Nigeria includes the rate of insecurity, lack of confidence in the government direction and policies, economic hardship and corruption. The cost of migrating from Nigeria to most of these developed countries is quite high, so most times, the migrant would focus on taking his most immediate family members. This means that he would likely still have other loved ones that will be in Nigeria, that he cannot take along with him because of limited resources, but still has some obligations to them. Therefore, he will need to explore Remittance channels to provide the needed support.
Steps to take in starting your own Remittance business on Remitano
Do you know you can start your own Remittance business on Remitano? Lets look at some things that you can do to get started -
- Open a Remitano account if you do not have one already: This is the first step, as you will need the your Remitano account to receive the crypto from the sender. The sender does not need to have a remitano account to send you crypto, they just need the deposit address of your usdt, btc or any of the other coins available on the Remitano platform. Please always ensure that you send the correct address to sender. .
Choose a business model: Will you operate physical storefronts, an online service, or both? A storefront will require more overhead but may attract more customers. An online model is more scalable but you'll need build trust with your customers. So you can start your Remiitance business online with friends and family that you know, and then as them to review your services and recommend their contact.
You can set up physical kiosk if you stay in the rural areas, as this will encourage people to connect with you in that location.
Provide great customer service: Remittance services involve people's hard-earned money, so you must deliver a seamless experience with accurate, transparent transactions and friendly support. Hire knowledgeable staff, continually monitor transactions, and quickly resolve any issues that arise. Superior service will generate customer loyalty and word-of-mouth promotion.
So there you have it. Starting your Remitance business on Remitano is easy because of our fast off/on ramp feature that allows you to cash out money at any time of the day, so you wont have to worry about delaying your customers.
