PayGate, contructs netting system for “620 trillion, foreign currency remittance market.”
PayGate announced on 27th that they have constructed the netting system for small amount foreign currency transfer with major banks in Hong Kong and Jeonbuk Bank. In 2017, there was about 14 trillion (KRW) in domestic remittance market and total about 620 trillion (KRW) in global foreign currency remittance market, and with the system, PayGate is now planning to take a great place in the field of global market.
PayGate Hong Kong, PayGate's subsidiary in Hong Kong, acquires MSO license from Hong Kong government in May for small amount foreign currency remittance, and PayGate also set up a Won-denominated account in Jeonbuk bank with the permission from Korean government. PayGate Hong Kong now plays as a network channel of foreign remittance between Hong Kong and Korea.
Netting is a legal transfer method by offsetting the money for sending out and receiving. There are various methods being applied in global foreign currency market to reduce the cost of remittance such as virtual currency, pooling, and free pooling. Netting is one of the most efficient ways to make a fast remittance and also minimize the cost, and many of the global foreign currency remittance companies are endeavoring to develop a more efficient remittance network such as netting to help them expand the business.
An officer from PayGate said, "Our technology of foreign exchange remittance has got much attention since we established a remittance system with banks in Hong Kong as a financial center in Asia. We will continue expanding our network with overseas partners for global remittance infrastructure."
PayGate will complete the identity verification, anti-money laundering system, and API interlock for the Korean Won transfer service with Jeonbuk Bank, and the service is planned to be launched at the end of November.
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