LumoXchange Launches Currency Exchange Marketplace for Cross-Border, Peer-to-Peer Payments
LumoXchange, a financial technology (FinTech) payments company, announces the launch of the world’s first currency exchange marketplace that lets users pick their exchange rates and send money.
Based in Little Rock, Arkansas, and a graduate of the VC FinTech Accelerator by FIS, LumoXchange provides exchange rates from its international partner financial institutions in each country and lets users compare rates, review customer ratings and select how their beneficiary will be paid.
“Just like shopping for the best-priced hotel room on Hotels.com, you can compare the exchange rates and convert your payment to local currency while saving up to 50 percent on fees versus the competition,” said LumoXchange Founder and CEO Maf Sonko.
For its initial launch, LumoXchange will be available first for payments to Gambia, Senegal, Mali, Ghana and Nigeria. Later this summer, LumoXchange will add payments to the Philippines, which is the fourth largest payments corridor from the U.S. This gives the company a total addressable market of $17.5 billion in cross-border payment annually by the end of 2018. The company is set to announce more partners to its money transfer marketplace as well as payments to more countries in the coming months.
During a six-week pilot of its groundbreaking currency-exchange marketplace, LumoXchange processed two percent of total inbound payments to Gambia and achieved a 95 percent customer retention rate. The successful pilot allowed customers to compare exchange rates locally and send money on the same platform, an action that was unprecedented in cross-border payments.
“As an immigrant to the U.S., I know firsthand the lack of transparency and expensive cost of sending money abroad. We solve the age-old issue of the cost of converting currency when sending money abroad through our currency exchange marketplace,” Sonko said.
Although there are comparison sites that allow users to compare exchange rates, no company has been able to combine the comparing of rates and sending money on a single platform. LumoXchange is able to cracks the code through Local Exchange Networks (“LENs”), which is a network of financial institutions in each country where it offers payments. Local financial institutions compete to convert inbound payments by offering competitive exchange rates and options to pay beneficiaries directly into their bank account, mobile wallet, or in cash.
“We bring true transparency to the $600 billion global remittance industry by democratizing the process of sending money abroad,” Sonko said.
Headquartered in Little Rock, Arkansas, LumoXchange is one-stop shop exchange rate comparison and international money transfer company. Through its innovative Local Exchange Networks (LENs) created with local financial institutions in each country, LumoXchange can provide cross border payments using the real exchange rates at the local level. Easily search, compare, and send money online with the great exchange rates.