Mobile operator Digicel Group has signed a US$17-million ($1.5b) financing arrangement with mobile banking outfit Boom Financial, formerly m-Via, to spearhead remittance products in the region.
The deal, completed late last week, is expected to result in products that offer lower transaction fees than remittance services that can cost some 10 per cent on US$100 of transfer.
"Our investment in Boom Financial is a reflection of the strong value of the Boom service and the high-quality company that the team has built. Digicel's customers in the Caribbean and Central America receive more than US$5 billion a year in cash remittances from the US," said Colm Delves, CEO of Digicel Group, in a release posted on Digicel's website.
"Working with the Boom Financial team, we will seed a mobile banking ecosystem in these markets that eliminates the high fees and safety issues associated with cash remittances," Delves said.
Boom will use this investment to expand its product team in the US, as well as to increase sales channels and distribution in the US, Latin America, and the Caribbean, according to a Digicel statement on its website.