IFC Investment..29 May 2013 08:23
$10m Investment by IFC, a member of World Bank Group
Investment by the world's largest private sector development institution to expand Earthport's global cross-border payments service infrastructure and drive financial inclusion in developing nations
Earthport (AIM: EPO), the cross-border payments service provider, is pleased to today announce that IFC, a member of the World Bank Group, has agreed to subscribe for $10 million in new ordinary shares ("Subscription"). These funds will be used to expand Earthport's presence and payments service infrastructure, particularly in developing countries. Through this investment, Earthport also becomes part of IFC's extensive network which includes over 900 financial institutions, providing Earthport with access to potential partners and clients in key geographies.
Earthport's innovative, entirely electronic, account-to-account cross border payments service facilitates a more transparent, lower cost payments infrastructure, suitable both for remittance and low value trade payments. Earthport's service is supported by strong compliance processes, controls and a risk based analysis of clients. Through integration with Earthport's services, banking and money transfer organisations are able to offer an increased range of international payment products to their customers.
The more widespread expansion of Earthport's payments service into developing countries is expected to have three key benefits: it will greatly streamline and simplify making cross-border remittances, making them more efficient and cost effective; it will improve international trading opportunities for SMEs in developing nations by removing the barriers that high costs and delays for traditional international payments create; and increase financial inclusion in developing nations.
In many developing nations, the annual level of international remittance from citizens working abroad can be between 7% and 35% of the nation's Gross Domestic Product. Much of this continues to be carried out via traditional methods, which can be both costly and cumbersome.
"Earthport's technology cuts the costs and delays of international money transfers, facilitating trade for SMEs and remittances for migrant workers - key priorities for IFC in helping people in developing countries improve their lives" said Vincent Gouarne, IFC Director for Infrastructure. "We look forward to partnering with Earthport in this next stage of growth to further spread their reach in emerging markets."
Hank Uberoi, Executive Director of Earthport plc, commented, "This significant investment by the IFC represents a strong endorsement of our leading and innovative cross-border payments service. In addition to expanding our presence in emerging markets, Earthport will also become part of the IFC's extensive network of financial institutions globally.
"We are very proud to be affiliated wit