As of today, most money transfers are made using traditional solutions by migrant workers, such as compensation between expenses in the country of origin and country of residence, thanks to relatives or third parties, or cash transported by friends, relatives, or intermediaries. These solutions typically tend to be slow, unreliable and costly.
In emerging countries, with a high percentage of unbanked population and with a lack of banking infrastructure, the demand for domestic money transfers is also driven by security issues. In many situations, physically transporting large amounts of cash poses high risk. For this reason, more consumers demand an electronic means of money transfer.
Thanks to the use of a POS terminal, transaction is made in an easy and secure manner for all stakeholders.
In a typical money transfer transaction, a consumer goes to an agent location, completes a form specifying, among other things, the name and address of the recipient, and hands it over to the agent along with the principal amount of the money transfer and the fee for the agent. The funds are then made available for payment, usually within minutes.
The recipient goes to an agent location in the designated receiving area or country, presents identification and is paid the transferred amount.
The best way to ensure safety and reliability for the sender, the recipient, and for the money transfer agent is to equip the agent with a POS terminal that has the appropriate application. A POS terminal provides end-to-end security and a secure network. Thanks to a combination of online authorizations, and a complete transactions logging, the POS terminal also allows a full monitoring of shopkeepers who are manipulating cash at both ends of the system.
Made a cash transfer using an SMS and a POS terminal prevent money transfer from a lot of risks.
An unbanked money sender wants to bring cash to a point of sale, give it to the shopkeeper, obtain a receipt, and designate a recipient. The best tool to manage such a transaction in a secure manner, in relation with a global money transfer operator system, is a POS terminal. The sender is given a one-time user code, that he has to send to the recipient, typically, using an SMS on a mobile phone.
The recipient will use this code at a point of sale, where he will be given cash. Again, the transaction has to be performed on a POS terminal to ensure security, as the POS is the means to verify the validity of the transaction as well as to register it, thanks to its connection to the global money transfer network.
POS Terminals are compliant with anti-money laundering rules
Performing money transfer transactions on a POS terminal are also instrumental in ensuring compliance with anti-money laundering (AML) rules. Today, most financial institutions globally, and many non-financial institutions, are required to identify and report transactions of a suspicious nature to the financial intelligence unit in the respective country.
Especially in the USA, financial institutions, and more globally all players involved in money management and transfer have to perform background checks to identify their clients and ascertain relevant information pertinent to doing financial business with them. These rules are known as “Know Your Customer” (KYC).