By PYMNTS.com Staff (@pymnts)
In the world of payments, there are several different products that help consumers transfer money. How these products, such as Google Wallet or Bitcoin, are used typically depends on the payment vertical – the unbanked, the underbanked, the banked, and the early adopters, Rahier Rahman, founder and CEO of the money-transfer platform Pangea Payments, noted in a recent podcast interview with Market Platform Dynamics CEO Karen Webster.
Pangea is building a platform that enables movement of funds across these verticals, he said.
(jump to: 1:50) “What we really do is create a hub to provide consumers with maximum distribution, so multiple touch-points where they can go in and stem their value,” said Rahman. “We provide a low-cost option and a better user experience.”
One of the first payment verticals that Pangea is targeting is cash-to-cash transfers. For example, Rahman mentioned that if a consumer living in a small village in Illinois wanted to send money home to Mexico using only cash, there are not a lot of options for he or she to use.
(jump to: 3:45) “What we’re building is providing alternative cash transfer locations for consumers. We would enable a consumer to take $200 to a retail location and transfer those funds. And that doesn’t exist right now,” said Rahman.
Aside from focusing on cash Pangea puts digital currency like Bitcoin into perspective as well, Rahman said. When he thinks about an alternative form of currency, Rahman sees the challenge of whether it’s transactional or speculative. (jump to: 6:01) “In the future, if you seem to own Bitcoin, and you want to transfer that value, Pangea can facilitate it,” he said. “So we view Bitcoin as complimentary.”
One of the biggest challenges Pangea faces in building a global platform is the regulatory environment. jurisdiction changes from country to country (and state to state in the U.S.), and abiding by so many different laws when enabling transactional commerce requires much patience, Rahman explained.
Building partnerships domestically and internationally can also pose a challenge. However, the team at Pangea is good at nurturing these, working with major processors, gateways, banks, financial institutions, and others to further develop relationships, he said.
(jump to: 10:58)“I think about the partnership capability that we’re building, and the regulatory environment – how we’re managing and navigating that process. Both are fundamental to the success of the business,” said Rahman.
To learn more about Pangea Payments and its global money transfer platform, listen to the full podcast by clicking below.
*If you have trouble with the audio player above, click here.
Rahier Rahman is the founder and CEO of Pangea Payments. Previously, he was an instrumental member of the founding team of domu.com, helping formulate the business case as well as managing the development and product launch. As CFO at Schatz Development, Rahman oversaw the investment process for real estate and early stage VC deals. He also previously worked at Cerberus Capital Management and Time Warner.