The Red Cross in Denmark has partnered with fintech company, Inpay, to reach more countries for emergency aid funding.
This partnership is intended to enable the Red Cross to save millions of Danish kroner annually, which can be used directly for humanitarian work.
With this collaboration, the Red Cross are able to transfer funds directly to partners in Myanmar through Inpay with less cost than before. Therefore, the savings freed up from this partnership will be used for emergency aid, aiming to benefit those in need. Initially, the solution includes Myanmar, Bangladesh, and Ethiopia, with the goal of expanding the new payment solution to other countries where the Red Cross is active and traditional bank transfers struggle to reach.
According to the press release, these advantages for the Red Cross are a result of Inpay’s system, which consists of a network of local banks distributed worldwide. This enables rapid transfers with lower costs compared to international bank fees. Additionally, the Red Cross can pay the transferred amount in local currency, avoiding high currency exchange fees.
International Aid Fund Transfers
Inpay’s solution is based on a tech-enabled network of global financial institutions, making it more secure and cost-effective to send money internationally.
Transferring money abroad can often be slow and associated with high fees. This is also a challenge for the Red Cross, as it can take a long time and be expensive to get funds to people in need of humanitarian aid in countries where traditional international money transfers often struggle to reach.
As per the press release, Myanmar is one of the countries where it has been challenging to deliver aid to those in need. Much of the population there struggles to build a decent life, facing a range of challenges due to climate disasters, including severe flooding.
Significant problems in countries often correlate to difficulties in getting funds to the people who need them the most. This is why the Red Cross is seeking better options to transfer money quickly, safely, and at a lower cost, especially to Myanmar.
More about Inpay
Based in Denmark, Inpay aims to offer fast, secure, and cost-effective cross-border payments. With Inpay’s technology and broad global network, financial institutions, NGOs, and businesses can make international payments as straightforward as domestic bank transfers. The fintech is an authorised payment service provider in the EU and is regulated by the Danish Financial Supervisory Authority.
In July 2023, Inpay obtained an Electronic Money Institution licence from the Danish Financial Supervisory Authority (FSA). The company would be allowed to issue electronic money, to facilitate payments, money disbursements, as well as other payment services.
Source : The Paypers
