What remittance providers you should NOT use

For many immigrants such as myself, remittance is part of the life living overseas. We work hard here and send a bit of help back home whenever we can. In normal times, such assistance is a nice touch. In times like this when many parts of the world such as Vietnam are in strict lockdown because of Covid, it becomes even more critical and appreciated. In times like this, it matters more which remittance providers we entrust with our money to family and loved ones. In this post, I’ll tell you which ones I’d use myself, what I’d not and why.

When it comes to choosing a provider through which I can send money back home, these are the main selection criteria:

  • Are they reliable? This is money we’re talking about. Of course, we want it to be safe and secure. Luckily, the most popular services on the market have a good reliable track record. If not, they wouldn’t service in this business.
  • How long will it take for money to be deposited? Nowadays, it takes much less time for recipients to see money show up in their bank accounts than it did just a few years ago. A transfer can arrive at the receiving account in a few hours or within a day. My experience is that the top providers can transfer funds at pretty much the same speed.
  • How much does it cost in total? This is THE deciding factor. Influencing the net amount that recipients receive are the fees and the exchange rate. The best way to evaluate different services is to look at the final amount that will be credited to the destination account.

I conducted two experiments in which I looked at what would happen if I transferred $1,000 to Vietnam and India using the most inexpensive method through 6 select providers: Xoom/PayPal, Money Gram, World Remite, Ulink Remit, Western Union and Wise. Here are the results:

$1,000 from the U.S to Vietnam$1,000 from the U.S to India
Wise22,544,180 VND72,450 INR
Money Gram22,537,350 VND72,663 INR
Ulink Remit22,226,000 VND72,565 INR
World Remit22,140,076 VND71,930 INR
Xoom/PayPal22,348,000 VND72,034 INR
Western Union22,468,068 VND72,606 INR
Figure 1 – Net amount received when $1,000 is sent to Vietnam & India using different remittance services

In both cases, Wise, Western Union and Money Gram are very competitive. Ulink Remit should be considered if the destination is India. Both World Remit and PayPal should not be considered. I don’t know about the value of a few Rupees in India, but if I have to lose a couple of thousand Vietnam Dongs on every $1,000 sent back home, I’ll be put off. Personally for me, Western Union, Wise and Money Gram will be the go-to services to send money to Vietnam. What is yours?

Net amount received when $1,000 is sent to Vietnam through different providers
Figure 2 – Net amount received when $1,000 is sent to Vietnam through different providers
Net amount received when $1,000 is sent to India through different providers
Figure 3 – Net amount received when $1,000 is sent to India through different providers

Figure 4 – It’s weird to see WorldRemit is the recommended provider here

Weekly reading – 3rd July 2021

What I wrote last week

My thoughts on why investing is hard

Business

Credit Suisse 2021 Report on Payments, Processors & Fintech. This deck is long and has tons of information. You can get a lot of pointers out of it, but be aware that many slides have quite old data.

The economics of dollar stores. An excellent post by The Hustle on how dollar stores work. The most interesting things to me are 1/ unit prices on some items at these stores can be higher than those at bigger chains such as Target or Walmart. The absolute prices are lower, but they are also on a much smaller volume. 2/ These stores seem to be more concentrated in poorer neighborhoods. I read somewhere that richer customers don’t mind the stigma of buying stuff at dollar stores. I wonder if that’s still true and how much the trend is a boost to these stores’ business.

How a Beer Giant Manages Through Waves of Covid Around the World. A great story of how a global business uses data analytics to make decisions in the tumultuous pandemic. Even when the AB Inbev’s data team accurately predicted the second surge in India, it did get the previous predictions wrong. Nobody has a crystal ball to see the future. All we can do is to increase the odds with a wealth of data and machine computing.

Mac sales in India tripled after online Apple Store opened. One aspect of Apple’s business that I think should be discussed more is its retail stores and website. The report here credited the presence of Apple’s website for the significant increase in sales. I also learned from the article that to launch own-brand eCommerce sites in India, companies need to source locally 30% of their production. I guess there is a side benefit of expanding supply chain in India, apart from lowering the risk of over-reliance on China.

What does MongoDB do?

An interesting article on the next CEO of Amazon, Andy Sassy. The level of detail orientation described in the article is admirable. I love the concept of the Wheel of Death. People naturally tend to get complacent. Having them on their toes and preserving the unpredictability is a great way to ensure that they perform to the level required.

What I found interesting

Inside Wikipedia’s endless war over the coronavirus lab leak theory. Content moderation is super difficult at scale. Especially when you are widely considered to be neutral and often accurate. And during a global pandemic.

Equipping cargo ships with puffy sails could help Michelin improve a vessel’s fuel efficiency by 20%

The 5 coolest trends in urbanism … in Europe

Stats that may interest you

U.S online grocery sales hit $7 billion in May 2021, just a bit higher than the figure in March 2020, right before Covid

1/3 of U.S grocery sales comes from independent supermarkets

1 out of 3 men in the U.S reported to have fewer than 2 close friends, excluding relatives, according to a survey in May 2021

According to Bain, Covid increased the forecast online sales as % of all grocery sales in the US in 2025 from 8% to 13%

Average Prime Day order in 2021 was $47.14, down from $54.64 and $58.91 in 2020 and 2019 respectively

Amazon Pay Later hit 2 million sign-ups in India

97% of customer auto purchases in the U.S involves online research, but auto eCommerce only makes up 1%

Weekly reading – 15th May 2021

What I wrote last week

App Tracking Transparency & Apple Search Ads

Business

Why DoorDash and Uber Eats Delivery Is Costing You More. The service and delivery fees seem to be bigger than they were before Covid. I am not so sure if that trend is positive to the future of these delivery companies. At some point, it would hurt the relationship with merchants

Walmart is losing its grips on grocery. I don’t really expect Walmart to catch up with Prime soon, but it’s a bit surprising to me that the company is losing its lead in grocery, their bread and butter.

A sensible and good writeup on Epic vs Apple. I may be biased towards Apple as it is my first ever stock, but if you are a reasonable person, you likely won’t look at what Epic did and does, and support them.

Vietnamese startup Nano raised $3 million seed round. I believe this should be one of many fintech startups from Vietnam in the near future.

The Korean Chatroulette-style dating app quietly taking over the world

JPMorgan, Others Plan to Issue Credit Cards to People With No Credit Scores. It’s past time that companies take into account other factors in giving prospects credit cards or not.

What I found interesting

Biggest ISPs paid for 8.5 million fake FCC comments opposing net neutrality

Apple AirTags vs. Tile: The Best Tool for Finding Your Lost Stuff. The current generation of AirTags may have weaknesses and their performance isn’t eye-opening yet. But give it some time and I believe it can be another great segment in addition to AirPods and Apple Watch

Fact-checking Modi’s India. It’s just mind-blowing how the truth can be bent that much so that some people gain so much power.

The Verge has a good article on Federated Learning of Cohorts (FLoC), a new initiative by Google as preparation for life after 3rd party cookies

Jony Ive’s advice to the next generation of designers

Stats that may interest you

Consumer prices increased by 2.6% for 12 months ending March 2021. Perhaps it’s time to be rigorous in saving your money, unless you can increase your income.

App Store stopped more than $1.5 billion in potentially fraudulent transactions in 2020

Weekly reading – 20th February 2020

What I wrote last week

I reviewed the book Working Backwards. If you are interested in the culture at Amazon, have a read!

Business

Robinhood revealed it has 13 million customers, 13% of which traded options, 9% of which were African Americans, 16% of which were Hispanic.

The highest court in UK ruled that Uber drivers have to be classified as employees. Uber cannot appeal further in the UK; as a result, unless it wishes to exit the UK market, especially London, operating expenses will likely increase from now on. Another interesting detail from the ruling is that workers should get paid whenever they are logged into Uber’s system and poised to accept rides. On the other hand, Uber argued that the ruling would only apply to Uber’s Mobility, not Uber’s Delivery. I don’t know if that’s factually true, but I don’t like their chances.

Facebook practically lied to marketers about their potential reach

Scott Belsky is one of my favorite follows on Twitter. As the founder of Behance and Chief Product Offier at Adobe, he had a fascinating take on several issues related to startups and products. Here is an interesting interview between him and Patrick O’Shaughnessy

US video streaming giants face tough second act in India

WSJ’s piece on Walt Disney CEO Bob Chapek. He seems to be more ruthless on the bottom line, less burdened by creativity and the nostalgia of the Disney brand than his predecessor

What I found interesting

Jacquard by Google. The product category may be interesting, but I am not sure that folks are ready for it. It’s bad enough that we carry around our phone with us every single waking moment in this digital life. Whether consumers agree to carry another device, no matter how small, remains to be seen, especially when the device comes from a company like Google, which is notorious for tracking users.

How to be more productive, more easily

Why did I leave Google or, why did I stay so long?

Have a look at the beauty of Vietnam, from above

Interesting stats that may interest you

35 of Amazon’s sellers in India made up more than two thirds of its online sales

Source: Chartr

Weekly readings – 16th May 2020

A scathing critique of AWS from this engineer

Related to the link above, this is quite a blog post from someone who used to work at Amazon and was working at Google at the time of the writing

Content, Cars, and Comparisons in the “Streaming Wars”. Matthew Ball’s essays are always great to read

The secrets behind the runaway success of Apple’s AirPods

How Morning Brew grew to $13m in revenue with 33 employees

Vauban Architecture: The Foundation of Central and Northern Vietnam’s Citadels

The latest memo from Howard Marks

How the most prized degree in India became the most worthless

WeChat Surveillance Explained

If Landlords Get Wiped Out, Wall Street Wins, Not Renters

All applications used at GitLab

Chicago Will Now Require Food Delivery Apps to Disclose Itemized Cost Breakdown. You can protect restaurants or you can protect delivery apps. In this case, I don’t think you can do both. I am glad Chicago went with restaurants

Source: Crunchbase

How Khan Academy Successfully Handled 2.5x Traffic in a Week

The faded beauty of abandoned cars across Europe and the US

“Visa saw an 18% rise in U.S. digital commerce spending during the month of April, excluding the travel category, as face-to-face transactions fell 45%”

From Boston to Saigon: A Coronavirus Quarantine Diary

Lessons From Slovakia—Where Leaders Wear Masks

Senate Votes to Allow FBI to Look at Your Web Browsing History Without a Warrant. I’d argue that this is a bridge too far into user privacy

Next time if you want to support local restaurants by ordering on delivery services like Grubhub or DoorDash, you may want to do a bit of research on how those services treat restaurant partners. Here is an example

Weekly readings – 9th May 2020

The decline in trust in governments shows no signs of abating. Everywhere you look, there is suspicion that measures taken by governments to combat Covid-19 will soon be used for mass surveillance afterwards. India is no exception. For A Billion Indians, The Government’s Voluntary Contact Tracing App Might Actually Be Mandatory

The pandemic doesn’t seem to affect spending on cloud infrastructure badly

The man feeding a remote Alaska town with a Costco card and a ship

Apple Watch detecting coronary ischaemia during chest pain episodes or an apple a day may keep myocardial infarction away

VP of Amazon resigned to protest the firing of workers who spoke out on the working conditions at Amazon warehouses

Looking Back on Four Years at The Times, in the words of their former CTO

Amazon pulled no punches in its public blog post on Microsoft regarding the JEDI dispute

Spotify should pay musicians more? Let’s talk more about how

Weekly readings – 28th December 2019

The last Weekly readings episode of 2019. I have had fun doing this because this serves mainly as my notes. I hope you got something out of these notes

Nadella is killing it at Microsoft and won the Person of the Year crown from FT

Walmart’s strategy in the fight against Amazon.

The World’s Oldest Forest Has 385-Million-Year-Old Tree Roots. The sheer number is

Coolest things I learned in 2019

Rural America Turning to Grocers, High-Fee ATMs as Banks Leave. If I tell this to my dad, who idolizes America, he probably will say I am crazy!

Apple’s secretive work on a satellite project as a company priority

Why your brain needs exercise

This seems to be a massive issue in the future for Amazon, especially when its 3rd party business has become increasingly important

The Dubai – Saudi Arabia route is surprisingly lucrative for Emirates

What’s Amazon’s market share? 35% or 5%?

‘Amazon’s Choice’ Isn’t the Endorsement It Appears

India needs new infrastructure

I am surprised at how well Hello Fresh has been doing

Americans are retiring in Vietnam and other Southeast Asian countries

Weekly readings – 24th August 2019

Spotify’s pitch to podcasters: valuable listener data

Netherlands’ Building Ages. How cool is this? It must have taken quite some time and effort to build this map.

OuiWork? The quick case for WeWork as an actually disruptive business

Apple Targets Apple TV+ Launch in November, Weighs $9.99 Price After Free Trial

Where Top US Banks Are Betting On Fintech

Manufacturers Want to Quit China for Vietnam. They’re Finding It Impossible

Apple’s New TV Strategy Might Just Work

MoviePass database exposes 161 million records. Much as I am grateful to MoviePass, perhaps it’s time for the company to be shut down

Starbucks, monetary superpower. Let me give you a notable quote to get an idea of what this article is about

Starbucks has around $1.6 billion in stored value card liabilities outstanding. This represents the sum of all physical gift cards held in customer’s wallets as well as the digital value of electronic balances held in the Starbucks Mobile App.* It amounts to ~6% of all of the company’s liabilities. 

This is a pretty incredible number. Stored value card liabilities are the money that you, oh loyal Starbucks customer, use to buy coffee. What you might not realize is that these balances  simultaneously function as a loan to Starbucks. Starbucks doesn’t pay any interest on balances held in the Starbucks app or gift cards. You, the loyal customer, are providing the company with free debt. 

Now bigger than eBay, Shopify sets its sights on Amazon

Inside India’s Messy Electric Vehicle Revolution

Weekly readings – 11th May 2019

Charlie Munger, Unplugged. I try to read as much as possible about Charlie Munger. This is a great interview with him. The part I like most about the interview is when Charlie talked about how he read till he slept.

In News Industry, a Stark Divide Between Haves and Have-Nots. An insightful and fascinating piece on the struggle of newspapers as a whole to generate digital revenue to offset the loss in ads dollars. Only a few exceptions and the Big Three (WSJ, The Times and The Post) seem to have managed reasonably well.

Uber Wants to Be the Uber of Everything—But Can It Make a Profit? The “we are going to be the Amazon of transportation” narrative will be used a lot ahead of Uber’s IPO. I can see some value in that, but frankly, I don’t believe that is the case at the moment. The level of competition that Amazon had to face back in the day and Uber has to face now is likely different. I doubt Amazon faced a lot of legal challenges as Uber has had up to now. Plus, the economics of the two companies aren’t the same. Look at the chart below and see if there is any similarity between the two

Eating breakfast is not a good weight loss strategy, scientists confirm.

Can Bird build a better scooter before it runs out of cash? A revealing piece on the scooter business.

Ilargi: Renewables Are Dead. I find renewables polarizing as a subject. There are fans on each side of the argument. No matter what, I guess if we hadn’t tried, we wouldn’t have known what we know now.

New Data: The Airbnb Advantage. According to AirBnb, New York, London and Paris make up less than 3% of its total listings and no city makes up more than 1% of the listings.

Ethiopia’s garment workers make clothes for Gap, H&M and Levi’s but are the world’s lowest paid. Workers in sweat shops in Ethiopia got paid $26/month. The same figure in Vietnam is $180/month.

India’s water crisis is already here. Climate change will compound it.

Weekly Readings – 6th April 2019

The Enormous Numbers Behind Amazon’s Market Reach. A nice overview of where Amazon stands in various industries with visuals. 42% of the book retailing market, 45% of the E-commerce space, 32% of the cloud computing market, 35% of the online apparel area. From a business strategy and execution standpoint, Amazon is a remarkable success.

Death by a Thousand Clicks: Where Electronic Health Records Went Wrong. An astonishing and remarkable (long) read on Electronic Health Records in America. I urge you to have a read if you stumble upon this post of mine. Despite throwing billions of dollars at the nationwide EHR effort since President Obama’s first tenure, America has had little to show for it. I’ll let the former Vice President – Joe Biden share his story: “I was stunned when my son for a year was battling Stage 4 glioblastoma,” said Biden. “I couldn’t get his records. I’m the Vice President of the United States of America … It was an absolute nightmare. It was ridiculous, absolutely ridiculous, that we’re in that circumstance.”

Digital India. A very interesting report by McKinsey on the digital landscape in India. Sneak peek below

By McKinsey

Howard Marks’ latest memo. As insightful and enlightening as always.

Amazon’s Rise in Ad Searches Dents Google’s Dominance. Amazon as an advertising giant is here. Established ads agency such as WPP or Omnicom reportedly spent a good chunk amount of money on Amazon ads on behalf of their clients.