rise, a financial services platform designed for expatriate workers, has launched ‘Xare’, a new product aimed at empowering more than one billion people worldwide to become their own bank. The free-to-use mobile app will enable anyone, anywhere, to instantly share access to their account and credit card with their friends and family while maintaining total control over spending and without sharing any sensitive information.
Although there are more than 35,000 banks worldwide, over a billion people do not have a bank account and at least half of the global population cannot access bank credit. Xare was developed as a result of rise’s commitment to democratising banking and providing innovative products for those that cannot access mainstream financial services.
Padmini Gupta, Co-founder and CEO at rise, said: “We are delighted to launch Xare as part of our ongoing efforts to revolutionise financial services to provide a myriad of options and solutions to those that have historically been ignored by traditional banks. Through Xare, we are aiming to build a billion banks worldwide, by empowering users to become the bank that their tribe needs to thrive. We believe that people everywhere deserve a fairer banking experience, and who better to give it to them than those that know them best – their friends and families.”
Migrant workers typically send around 80% of their wages back home to their families; however once the money has left their host country they often have zero control or transparency over how it is spent. Research by independent third parties shows that 93% of senders have no control on the spending and this has led to tensions between senders and spenders in up to 75% of the cases. Furthermore, the remittances process can be slow and incur hefty fees. Xare is reimagining remittances by enabling overseas workers to share their funds safely, securely, and instantly using a fully digital app.
The product also enables friends to share credit to prevent one party from having to take out an expensive short-term loan. Short term loans in many advanced markets, like the UK, can cost up to 24% per month and are often predatory on the borrower. Xare provides a fairer alternative, allowing people to help each other even if they do not have the cash to do so. It can also be used by parents who want to give their children cash for their day-to-day expenses or as a gift.
The app’s security system means that card details are never seen by the beneficiary and are not stored by Xare centrally, so they cannot be hacked or compromised. Once issued with a Xare card, beneficiaries can use their card in thousands of stores to purchase more than two billion products globally.
Milind Singh, Co-founder of rise, commented: “We firmly believe that Xare has the potential to make banking fairer and more humane, and we cannot wait to share our innovative solution with those that can most benefit from it. We are currently in the beta phase of development and are testing the product’s functionality with a few thousand users to enable us to fine-tune the app’s technology and service before unleashing Xare on to the masses. The launch of Xare represents an incredibly exciting time for the financial services sector globally.”
Users can join the waiting list to download Xare now through the Google Play Store. The app will be available worldwide by mid-November.