A new App lets you send Facebook friends online cash. Is it a new way for expats to switch their money overseas.
The Azimo foreign exchange service for moving currency between 125 countries was embedded in to the social networking site as a secure and trusted way for friends and family to switch their money.
The company – set up and based in the UK – claims the app is the first Facebook app that lets social media users cheaply transfer money between international banks.
Azimo founder Michael Kent said: “Facebook helps a billion friends and relatives keep in touch across the world, so it seemed suitable that if they were talking money, they should be able to switch cash around between banks and countries as easy as they can share chat and photographs.”
The currency exchange service will have to take on the mighty Western Union and Moneygram, who are the dominant players in the market that’s worth $500 billion a year.
Banks cash in on customers
Regulators worldwide have started challenging the rules and fees currency exchange firms apply to customers as they feel many are applying unfair charges.
Research by the World Bank revealed average charges are around 10%; while the transfer fees and commissions are almost double that in some places.
Many can see no reason for the steep fees and feel banks and money transfer services are cashing in on customers who have no other way to move their money between banks and countries.
Azimo pledges to charge up to 85% less than banks and promises to make the transfer within 24 hours rather than holding on to the cash for up to five days like many money exchange services.
Michael Kent explained: “Our automated online service is cheap because that’s what it is – we don’t need expensive staff and branches. Cutting overheads means we can pass the benefit on to customers.”
Secure transfers
Facebook users can log in to Azimo without any registration or extra security – but can add another layer of password protection if they like.
Just select the friend who you want to receive your cash. Azimo will ask them where they want you to send the money, you both agree the transfer and the money is on the way.
The Office of Fair Trading has led a crackdown in the UK on banks and other currency exchange services advertising 0% commissions but charging high fees. The practice has been outlawed, so banks and money services must clearly explain fees and charges.
Some have already ditched marketing 0% commissions – and the rest must follow suit within a few months.
