Visa, a global payments technology company, and CIBC (Canadian Imperial Bank of Commerce) have joined forces to introduce a groundbreaking collaboration, poised to redefine cross-border money transfers for the clients of CIBC and Simplii. Leveraging the cutting-edge capabilities of Visa Direct, this collaboration aims to provide enhanced convenience for sending funds across borders, catering to the evolving needs of consumers in an increasingly digital world.

The collaboration will empower CIBC and Simplii clients to seamlessly send money to an expanded array of digital wallets in key remittance destinations. Notably, countries such as the Philippines, China, Bangladesh, and Kenya, where digital wallets are prevalent as the primary method for financial transactions, will be included. This new capability is slated to be available early this year, marking a significant stride in the realm of international money movement.

Digital wallets have witnessed unprecedented growth globally, with projections anticipating their numbers to surpass 5.2 billion by 2026. Particularly in emerging markets, these wallets serve as a crucial gateway to the financial system, providing unbanked individuals with access to essential financial services.

The collaboration builds upon the earlier successful partnership between the companies, enabling CIBC and Simplii clients to utilize Visa Direct-enabled cross-border person-to-person (P2P) and business-to-consumer (B2C) payouts through CIBC’s and Simplii’s Global Money Transfer service.

Sam Fuda, Vice President and Head of Commercial and Money Movement Solutions at Visa Canada, expressed enthusiasm about the collaboration, stating, “Visa Direct enables consumers and businesses to send money cross-border with ease, and we are thrilled to work with industry leaders like CIBC and Simplii to provide even more remittance options for their customers. Together, we are working to break down the barriers of cross-border money movement to improve speed, transparency, and accessibility for both the sender and receiver.”

Despite the global shift to digital platforms, certain channels for cross-border money movement remain fragmented. Visa’s ‘Money Travels: 2023 Digital Remittances Adoption’ study suggests that consumers envision a future driven by digital technology in this space. Canada ranks among the top ‘sender’ nations globally, with 60% to 70% of remittance users in Canada and the U.S. utilizing app-based digital payment methods for international money transfers.

Research conducted by Simplii Financial revealed that a significant portion of respondents send money overseas monthly, with 79% seeking a more convenient way to transfer funds globally. Furthermore, 50% of respondents spend more than $100 annually on transfer fees, highlighting the demand for cost-effective and efficient cross-border payment solutions.

“Sending foreign currency has become an increasingly important part of many Canadians’ daily banking needs—a trend that we expect will continue for years to come,” said Jimmy Dinh, Managing Director, Direct Financial Services, CIBC Capital Markets. “Listening to our clients and working closely with Visa will help us to further build our unique no-transfer-fee cross-border payments platform that’s available with the rest of their banking services.”

Visa Direct, with access to nearly 8.5 billion endpoints, including accounts, cards, and digital wallets, plays a pivotal role in transforming global money movement. By facilitating the delivery of funds to eligible wallets, bank accounts, and cards worldwide, Visa Direct aims to enhance the efficiency and accessibility of cross-border financial transactions for clients of CIBC and Simplii.