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The fintech company XCOOP launched its operation in Peru

The fintech company XCOOP, a Latin American cooperative network for sending money transfers, which launched its regional operation in December in Argentina, announced that it has been operating in Peru since February. Although the country is primarily a recipient of money, it has an annual remittance market of $3.5 billion. Only 43% of Peru’s population has access to the banking system.

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This picture show a Peruvian city.

XCOOP is the first Latin American cooperative network made up of fintech service companies, financial institutions, technology providers, retailers, and a regional network of united businesses. The company promotes the financial inclusion of unbanked sectors of the population. It does so through the creation of the first Peer to Peer ecosystem for electronic payments and mobile payments based on sending money remittances to, from, and between Latin American countries and other countries.

If you want to find out more details about the operations of the fintech company XCOOP in Peru, download our companion app Born2Invest. An enthusiastic team of inhouse journalists brings you the latest business headlines in the fintech sector, as well as the crypto and biotech sectors, for you to stay informed.

The majority of Peruvians still don’t have access to banking

The three countries that send the most remittances to Peru in order of importance are Japan, Argentina and Chile. The remittance corridor between Argentina and Peru operates about $800 million annually, as the Peruvian community is the third largest in that country. The lack of the traditional alternative during the Pandemic drove thousands of users to the XCOOP platform, which grew by 400% during this period. Precisely because of this, the company subsidized money transfers between Peru and Argentina during the quarantine and set up a call center to help users.

Only 43% of Peru’s population has access to the banking system. Although this number shows that more than half of the population is outside the system, the reality is that it is the most vulnerable sectors that are mostly excluded. At the base of the pyramid, the number of unbanked climbs to 75%.

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“It is precisely for this reason that bringing this operation to the Internet required a specific development in order to be able to make the remittances without the need to open a bank account in the case of the one who sends the money, nor to have another account in the case of the one who receives the money. Users can withdraw the cash sent by their family members at the payment counters. They are informed in the XCOOP application when the transfer is made, or can use a bank account if required,” commented Alex Torriglia, XCOOP’s CEO.

XCOOP’s network in Peru

Currently, the company XCOOP has 29 collection points in different places in Peru, which allow withdrawing the money at its premises. In addition, it contacts people to inform them of the available collection places closest to the recipient’s address.

“We believe that the traditional model does not offer an answer according to the needs of the population that uses this service. The digital transformation of this sector has been gigantic worldwide, as new digital players captured 40% of the market. In our region we are the first to offer this service,” added Torriglia.

The company’s CEO concluded by stating that XCOOP is a fintech company that has just been launched in the market after two years of internal development. The objective is that of achieving a profound change in the regional remittance market since until now there were no new generation solutions for this segment.

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(Featured image by pvdberg via Pixabay)

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First published in PERU CIO, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.

Isaac Atwood is a PR and marketing consultant who has worked with respected names in the financial industry. He has also sat down in many sessions with startups aiming to become the next unicorn. Isaac loves working with CEOs, business executives, and entrepreneurs who wish to enter the following markets: artificial intelligence, cannabis, virtual reality, cryptocurrencies, robotics, wearable and smart tech, and even the much-hyped space race. He is currently managing the brand portfolio of an Asian firm planning for its IPO by the end of the year. While his engagements have taken him around the world, Isaac is proud to call Toronto his home.