Ditch that forex chart if you’re packing for a vacation abroad or even studying abroad. No, you don’t even need to have that credit card in your wallet or think about a bank transfer to pay your tuition. Simply download the HOP app (available on Android and iOS platforms), complete the onboarding KYC to access a multi-currency bank account, and you’re ready to pay in the currency of your choice for your overseas expenses.
The neo-banking mobile app addresses concerns such as high margins on foreign exchange, high exchange rates, lack of transparency on fee structure, complex documentation processes, incompatible formats between national banks and banks and the low degree of automation of domestic banks’ internal systems.
Mayank Goyal, Founder and CEO of moneyHOP, the company behind the app, says it aims to capture the global aspirations of students and tourists by giving them the ability to move around the world without worrying about travel. money and means of transaction. “The app allows making payments for accommodation, tuition, etc., before reaching the country itself in a paperless, transparent and cashless manner at an economical price. As for the rate of exchange, it’s the same if not lower than banks with no hidden markups or convenience fees,” he says.The globetrotter can also perform real-time exchange transactions on the app.
MoneyHOP also provides a numberless debit + forex card which can be used in India to spend in rupees and abroad as well as to spend in foreign currency. Since the card is linked to a multi-currency account where you can trade and hold foreign currency, it eliminates the risk of currency volatility.
MoneyHOP’s target customers are millennials, Goyal says. “That makes our primary target audience students going to study abroad. Eventually, these students will settle abroad and will have to send money home,” he points out.
As with any digital banking solution, using the HOP app requires verification of mobile number, email, PAN and CKYC (Central KYC), all digitally. In some cases, Aadhaar authentication may be required. It has placed several checks such as real-time face matching, geo-fencing and penny drop to prevent misuse of identities. In case of successful KYC, the user receives a lifetime free multi-currency account and a virtual card. The account earns up to 5% interest. Payments are valid in all countries except those on the OFAC list. For instant in-app currency conversion, the customer pays a fee of around 25 bps, while for international money transfers through the app, it is 35 bps.
MoneyHOP has onboarded 15,000 customers and aims to reach half a million users by the end of 2022. “There are many opportunities for innovation in cross-border banking. The market is big enough for us to make it a scalable business,” says Goyal.
The commission paid by customers for instant currency conversions/international transactions through the app is the main income of moneyHOP. It also generates profit through interchange fees that the merchant ends up paying for the customer to use the card, in addition to the interest earned on the floating amount held by users on the app.