A global payments group has significantly expanded its reach into the Philippines, acquiring a US-based fintech company specializing in credit-based remittances. This strategic move signals a shift beyond traditional money transfers, aiming to provide broader financial services to communities spanning borders.
The acquisition involves Pomelo International, Inc., a San Francisco-based company focused on cards, lending, and credit-building, with a strong foothold in the Philippines and Mexico. Pomelo’s core offering caters to migrants in the US sending funds home, and its team will now integrate with the acquiring company to further develop their innovative product.
Currently, Pomelo’s operations are temporarily paused to facilitate a seamless integration into the larger organization’s roadmap. This integration isn’t simply about adding another service; it’s about creating a more comprehensive financial ecosystem for those navigating international money movement.
This acquisition represents a pivotal step in evolving beyond basic remittance services. The goal is to empower cross-border communities and underserved customers, offering them access to tools that build financial stability and opportunity.
The Philippines is a key market in this expansion, benefiting from the acquiring company’s established presence and deep understanding of the local landscape. Combining Pomelo’s specialized expertise with a global platform unlocks powerful synergies, promising enhanced customer experiences and long-term growth.
The move allows for expansion into cards, lending, and credit services, leveraging Pomelo’s platform which uniquely integrates consumer credit with remittances. This includes a credit card specifically designed for money transfers, offering a streamlined and rewarding experience.
Customers utilizing the Pomelo Mastercard or debit card through the app can now transfer funds to Philippine bank accounts or e-wallets in real-time, at competitive costs, and while accumulating rewards. This offers a compelling alternative to traditional remittance methods.
Executives emphasized this acquisition as a natural progression, enabling access to crucial financial tools for those often excluded from traditional banking systems. The ambition is clear: to foster financial empowerment within cross-border communities.
Pomelo’s CEO expressed excitement about the next chapter, highlighting the shared commitment to serving these communities and accelerating access to credit and essential financial services. The potential for positive impact is substantial.
This development comes as more Filipinos abroad are embracing digital channels for remittances, seeking to minimize transaction costs. Recent data reveals a consistent upward trend in money sent home through banks.
Cash remittances through banks increased by 3.6% in November, reaching $2.91 billion. For the first eleven months of the year, total remittances from Filipino migrants soared to $32.111 billion, a 3.2% increase year-over-year.
The United States remains the primary source of these remittances, contributing a significant 40% of the total inflows. This underscores the importance of serving the US-Philippines corridor with innovative and accessible financial solutions.
