Puregold ventures into remittance business

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(Source: The Philippine Star | By Richmond S. Mercurio | July 9, 2015)

Puregold Price Club Inc., the grocery unit of retail magnate Lucio Co, is venturing into the remittance business with the introduction of PurePadala.

In a press briefing yesterday, Puregold president Vincent Co said the country’s second largest grocery operator is going full swing this month with its remittance venture as it seeks to further increase sales and foot traffic across its 239 Puregold stores nationwide.

“What we are seeing is every year the remittance business in the country is growing. Last year, it was about $23- to $24-million. So because we are not yet into that market, I challenged our team here to not just enter the remittance business just for the sake of being in the remittance business. We should have an innovation,” Co said.

Puregold’s PurePadala will be an industry-first as it will give senders the chance to decide where they want their money to be spent.

“Most of the time, around 25 to 30 percent of the money sent by Filipinos abroad is spent irresponsibly. The money that is supposed to go to essentials is sometimes spent on vices,” Co said.

“This innovation will allow senders to automatically choose where to allocate the funds such as for groceries, utilities or education. For example, the money will have to be spent in Puregold if it is allocated for groceries, instead of getting it as cash,” he added

Co said the sender would also have the option to exclude tobacco and alcohol products as grocery items.

“So we believe this will be a game-changer in the industry,” said Co, adding that Puregold expects the remittance business to have its impact in the company’s business in the next two to three years.

For now, Co said the venture is seen to help Puregold attract more foot traffic to its stores as it moves towards fulfilling its vision of being a one-stop shop.

Co said Puregold silently incorporated remittance into its business last year but it was restricted to the traditional type of money transfer.

“It took some time for us to introduce this because we want to make sure that all systems are ready,” he said.

Co said the listed grocery operator is teaming up with 57 remittance partners across 27 countries for its PurePadala venture which will be launched on July 12.

Puregold said transaction fee for the first three months would be free. For the succeeding months, the company assure the transaction fee would be lower than the standard rate of P10.