The pandemic has spurred digital innovation across the money transfer services sector like fire. It has changed the world forever by accelerating digital adaptation. Due to the pandemic, the situation faced by millions of people, especially overseas Pakistani communities worldwide, shifted people from traditional remittance models to end-to-end digitalization. End-to-end digitization had long been recognized as the solution to drive down costs and drive up the scale, but the shift to Digital had still been slow – until COVID-19 hit.
Impact of COVID-19
The effect of COVID-19 on migrants and the international remittances market has been dramatic. A strict lockdown, travel bans, and social distancing have brought global economic activities to a halt. Host countries faced additional challenges in many sectors, such as health and agriculture, that mainly depend upon the availability of migrant workers. Migrants, on the other hand, faced the risk of contagion and the loss of employment, wages, and health insurance coverage. Immigrants worldwide have been significantly affected in the following ways:
- It has increased the rate of unemployment dramatically – 20% since 2020, according to the World Bank
- Since businesses incur losses, the wages of migrant workers are reduced
- The traditional remittance models are disturbed because people can no longer interact traditionally with one another
- It has restricted land and air travel, thus, restricting people from meeting their loved ones back home
- As a result of strict lockdowns and social distancing, the last-mile and everyday errands have become hard to manage
How have consumers pivoted their remittances activity during COVID-19?
Traditional and informal ways of sending money back home were deeply disturbed due to covid related international travel restrictions. Social distancing, of course, meant that the conventional methods that money changes hands would likely no longer be hand to hand. The uptake of P2P payments and digital wallets will continue, even if the volume declines, at least temporarily. Nevertheless, as recent earnings reports attest, the digital age is becoming firmly entrenched.
FinTech companies operate faster, cheaper, and more transparently than cash-based or agent-led solutions. They are also less sensitive to lockdowns. This pandemic made people realize this, and that was the winning moment for these companies.
One such company is InstaKin, which guarantees migrants with already operational, verified, and trusted vendors through a quick, accurate, and compliant financial platform. According to CENFRI, 71% of migrants want to switch to a new platform like InstaKin that provides them greater access to hire and make direct payments to vendors in their native countries.
Worker Migration Abroad
One shining star for developing countries like Pakistan during this pandemic has been migrant remittances. According to Dawn, remittances from Pakistani workers employed abroad exceeded $2 billion for the eighth straight month in January at $2.3 billion, up 19 percent from a year earlier.
Migrant communities are now moving away from traditional remittances towards a new model – InstaKin, where they can make direct payments to business vendors residing in their home countries. This is also commonly known as purpose-driven remittances or task-based remittances. Named one of the most innovative FinTech companies in the USA, InstaKin is standardizing this industry and has completely changed the way migrants interact with their families back home.
InstaKin – Customer Application; Download Now
Safe, instant, and convenient – InstaKin’s App is designed for both Android and iOS users. Our algorithm matches customers’ requests with the most relevant vendors based on availability, location, service, type, ratings, and service levels. InstaKin’s App is easy to use with powerful features and secure payments, as it offers migrants a one-stop solution to all their tasks dealing with problems back home. Key elements to securely provide immigrants with access back home:
- Secure Transactions
- InstaPay for payment security
- Multi-Payment Options
- Digital Wallet
- Community Chat & Message Boards
- Vendor Collaboration
With InstaKin around, you do not have to rely on unverified and questionable vendors in your home country. We guarantee to provide you with operational, verified and trusted vendors through a quick, accurate, and compliant financial platform. Our motto is taking care of all your needs back home while you sit back, relax, and focus on your everyday life. At InstaKin – We believe in empowering Migrant Communities. You can count on InstaKin’s platform to manage all your tasks back home. Post a request or become our partner today.