Bancolombia and TerraPay Partner for Cross-Border Remittances

Published 6 months ago

Bancolombia, the largest remittance provider in Colombia, and TerraPay, a major global payments network, have announced a partnership aiming to enhance financial inclusion. The agreement will facilitate seamless cross-border transfers, providing Colombians abroad with secure, real-time methods of sending money home.

Strengthening the Domestic Remittance Market

The collaboration between the two companies is expected to bolster the domestic remittance market in Colombia. TerraPay’s extensive network, which includes 100 remittance companies worldwide and facilitates payments between over 200 sending countries and 120 receiving ones, will be a significant asset. Bancolombia, which currently has agreements with 17 remittance companies covering 125 sending countries, will also benefit from TerraPay’s innovative payment solutions.

In 2022, Bancolombia handled USD 5,692 million of the USD 9,429 million that arrived in Colombia. The partnership with TerraPay is expected to boost these figures, especially given TerraPay’s reputation for innovative solutions and infrastructure.

Aiding Colombians Abroad and At Home

The partnership will have significant benefits for Colombians living abroad and their families back home. It is expected to increase the number of channels available for sending money to Colombia, particularly benefiting Colombians who rely on remittances for their livelihood.

According to Cristina Arrastía, Vice President of Business at Bancolombia, the partnership’s greatest impact will be on people, especially Colombians who have family members abroad from whom they receive resources.

Expanding Remittances from Multiple Nations

The new alliance between Bancolombia and TerraPay is expected to increase the inflow of money from the United States, England, Spain, and other European countries, as well as various nations in Asia and Africa.

Paula Andrea Valle, Director - South America, TerraPay, emphasized the importance of the agreement, given Bancolombia’s dominant share of the remittance market. TerraPay’s presence in Colombia signifies improved flow of resources globally, thanks to its numerous licenses and real-time transaction and risk monitoring capabilities.

Quick and Efficient Money Transfers

Today, TerraPay enables smooth global money movement to over 7.5 billion bank accounts and more than 2.1 billion mobile wallets. Over 97% of its transactions are delivered in less than a minute. This speed will undoubtedly increase the satisfaction of Colombians, particularly those with Bancolombia accounts who require this service.

Arrastía highlighted that 36% of resources that arrive from abroad are used in Colombia to sustain households, while 13% is directed to the payment of obligations, and the rest is used for health and well-being expenses, fashion, food, and travel and transport.