Global: Visa and CIBC Join Forces to Enhance Cross-Border Remittances to Digital Wallets

Visa and CIBC have announced a strategic collaboration aimed at providing more convenient cross-border remittance services for the bank’s clients. Leveraging Visa Direct’s robust money movement capabilities, clients of CIBC and its digital banking arm, Simplii, will soon have the ability to effortlessly send money to various digital wallets in key remittance destinations, including the Philippines, China, Bangladesh, Kenya, and others where digital wallets are widely used.

This enhanced capability is expected to roll out in the coming months, as outlined in the joint press release issued on Tuesday (Jan. 9). Jimmy Dinh, Managing Director of Direct Financial Services at CIBC Capital Markets, emphasized the increasing importance of sending foreign currency for many Canadians, a trend expected to persist in the years ahead.

The release highlighted that 75% of new Canadians send money overseas at least once a month, with 79% actively seeking a more convenient remittance solution. Recognizing the demand, digital wallets have emerged as one of the fastest-growing financial instruments globally, proving especially valuable to unbanked individuals in developing markets.

Visa Direct, with access to nearly 8.5 billion endpoints, including over 2.5 billion digital wallets, 3 billion cards, and 3 billion accounts, plays a pivotal role in facilitating seamless cross-border money transfers. Sam Fuda, Vice President and Head of Commercial and Money Movement Solutions at Visa Canada, expressed enthusiasm about collaborating with industry leaders like CIBC and Simplii to expand remittance options for their customers.

This collaboration follows Visa’s recent partnership with International Money Express (Intermex) to extend money transfer services to more than 20 countries. In November, Visa and Remitly expanded their collaboration, streamlining cross-border fund flows and allowing Remitly customers to push funds directly to Visa debit cards and bank accounts in over 100 jurisdictions globally. The ongoing efforts highlight the commitment to enhancing the efficiency and accessibility of cross-border remittances.