Philippines Top Destination for Fund Transfer Firm

Atlanta-based iKobo Inc., which provides international money transfer services through a proprietary online platform, reported last week that the Philippines had pulled ahead as its No. 1 destination for money transfers from the United States.

The company has seen 100 percent growth in dollars transacted between the U.S. and the Philippines for 2003, Emeka Ohuche, iKobo co-founder and president, told GlobalFlash.

He also pointed to increases in U.S. customers sending money via iKobo's Internet application to Brazil, India, the Caribbean and parts of Eastern Europe.

Mr. Ohuche said he developed the idea for iKobo after experiencing the hassles of wiring money to the U.S. from Namibia while consulting for an American company there.

Founded in 2001, iKobo is now working to build a global customer base and aims to position itself as a more cost-effective and expedient alternative to traditional wire transfer services, such as Western Union, he said.

Mr. Ohuche explained that iKobo's service appeals largely to immigrant groups with access to and familiarity with the Internet and e-commerce, which fits the profile of expatriate Filipino and Indian communities in the U.S.

The iKobo system allows customers to create an account online and to transfer money from a credit or ATM card or bank account to an i-Kard, a debit card issued by iKobo in the U.S. and sent to the funds' intended recipient in one of 170 countries.

The money made available on the i-Kard can then be accessed through partner ATMs, now numbering a million worldwide.

Unlike traditional wire transfer services, the online transaction does not require a sending or receiving agent, which allows iKobo to charge between 20 to 50 percent less in commission, said Mr. Ohuche.

Once set up, the sender can also access his or her account at any time, reducing time-consuming paperwork associated with wire transfers, and the i-Kard, once in the hands of the recipient, can be "reloaded" for use.

The average transaction is approximately $100, he said.

Though the bulk of iKobo customers are individuals sending money "home" to families, the company has also seen a recent increase in the number of small businesses using the service as an alternative to e-commerce in countries that don't have an infrastructure or culture comfortable with online payment, said Mr. Ohuche.

He added that Argentina, Colombia, Romania, Thailand, Trinidad and the U.S. are included in the top 10 recipient countries, based on figures from the first half of 2003; the top sender countries include Britain, Canada, Germany and the U.S.

iKobo is also working to establish partnerships with banks around the world, which would allow recipients to access the transferred money directly from a bank rather than an ATM, Mr. Ohuche said.

The iKobo name is derived from a Japanese folktale in which a young Chestnut tree, known as a "kobo" and only three feet tall, begins producing chestnuts early in its life-span so the villagers have an easier time accessing its fruit. The word "kobo" also means coin or money in some languages.

Contact Mr. Ohuche at (678) 483-4562, ext. 5. Visit www.iKobo.com for more information.