Toronto and Montréal-based FinTech startup Beacon has launched its first financial product, a remittance tool designed to help newcomers to Canada receive money from India.
The startup, which emerged from stealth in May, plans to eventually build a “super app” specifically for immigrants in Canada.
“Our mission is to empower immigrants by removing the traditional barriers and complexities of international finance.”
According to a statement, the new remittance product, called Beacon Remit, allows users to remit money for their education from India to any Canadian bank.
The goal of the service is to ensure newcomers to the country from India, such as students, immigrants, and work permit holders are prepared to settle in Canada.
The startup claims the product is 50 percent cheaper than processing transfers through traditional banks in India, and its exchange rate is “optimized” in order to minimize the total cost of each transaction.
Transfers made from the platform are also approved by the Reserve Bank of India (RBI), Beacon said in a statement. RBI is India’s central bank and banking regulator.
“I know firsthand how challenging it can be to transfer money from India into a Canadian bank account, so we created a solution that allows users to move their money from start to finish with just one app,” Aditya Mhatre, Beacon’s co-founder and chief product and technology officer, said in a statement.
“Our mission is to empower immigrants by removing the traditional barriers and complexities of international finance, and Remit is the first of many financial solutions we are bringing to market to serve Canadian newcomers,” Mhatre added.
Beacon was founded in 2023 by CEO Stuart Szabo, a former leader at Canada’s Public Sector Pension Investment Board, and Mhatre, formerly a leader at Indian payments giant Paytm. The startup emerged from stealth earlier this year with $5.25 million CAD in seed funding.
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Beacon’s goal is to create a super app tailored for Canadian immigrants, offering a wide range of services within a single platform. A super app integrates various functions, like payments and other financial services, into one experience. One of the most well-known and oft-criticized examples of the super app model in the tech industry is China’s WeChat.
Several digital remittance services are available to Canadians, but most cater to sending money from Canada to recipients in other countries. In 2022, Canadians sent over $8.3 billion abroad via international transfers, commonly known as remittances, according to the World Bank. Among the companies hoping to disrupt this market are Seattle-based Remitly and Toronto-based Pesapeer.
While the remittance product represents Beacon’s first financial product, the startup also offers resources, such as planning guides, for newcomers to Canada. The startup is also working on a mobile app to help newcomers open a Canadian deposit account before arriving in the country. That offering would encompass Beacon Remit, as well as a prepaid virtual or physical card and ATM withdrawal.
Feature image courtesy Beacon.