Remittance from the US to Vietnam Part 3 - A Guide to Cash Pickup

In an era where digital transactions are becoming the norm, cash pickup remittance remains a vital option for sending money across borders.

For those looking to send funds from the US to Vietnam, cash pickup offers a reliable and accessible solution.

In this blog, we’ll explore the process of remitting money from the US to Vietnam with cash pickup, its benefits, and how to ensure a smooth transaction.

What is Cash Pickup Remittance?

Cash pickup remittance allows senders to transfer money to Vietnam, which the recipient can then collect in cash from designated pickup locations (usually at the bank's counter).

This method is facilitated by various remittance service providers and is particularly useful for recipients who prefer or need physical cash rather than digital payments.

Why do Vietnamese people prefer receiving remittances via the cash pickup method?

Here are some reasons that, Vietnamese people prefer receiving remittances via the cash pickup method:

Accessibility and Convenience

In recent years in Vietnam, although the cashless payment movement has become increasingly popular and widespread among young people, the percentage of individuals using cash for transactions due to the lack of a bank account remains quite high.

Arcoding to the 2023 report by FIS indicates that Vietnam currently has the fourth-highest cash payment rate among the 40 markets surveyed in Asia, following Thailand (46%), the Philippines (44%), and Japan (41%).

Cash pickup offers unparalleled accessibility, especially for individuals who may not have easy access to banking services.

For the method of receiving remittances via cash pickup, recipients can collect their funds from designated pickup points, such as local bank counters, without needing a bank account.

Moreover, some older individuals who are not familiar with technology, but are frequent recipients of remittances from their children or grandchildren working far away, rely on these funds to cover living expenses and improve their family's quality of life in Vietnam.

Another group that rarely uses online or banking services for payments includes small traders, who frequently handle cash in their daily business operations and transactions.

And they are also among the frequent recipients of remittances, as they regularly engage in trade with international parties.

The habit of holding foreign currency, especially US dollars, among Vietnamese people

For individuals receiving remittances, particularly through cash pickup methods, holding foreign currency can be advantageous.

Cash pickup services, which allow recipients to collect remittances in US dollars, align with the practice of holding and using foreign currency.

This method provides convenience and flexibility for recipients who prefer to manage their funds in a stable currency.

For some Vietnamese people, the US dollar is viewed as an asset, and they prefer to accumulate it based on the belief that the US dollar is a way to safeguard against economic instability and inflation.

The US dollar is often perceived as a stable store of value compared to the Vietnamese dong (VND). In times of economic uncertainty or high inflation, having a reserve of US dollars can provide a sense of security and preserve purchasing power.

No Need for a Bank Account

One of the key advantages of cash pickup is that it does not require the recipient to have a bank account.

In a country where a substantial portion of the population may be unbanked or underbanked, this feature is particularly beneficial.

By avoiding the need for a bank account, cash pickup simplifies the remittance process and ensures that more people can access the funds sent to them.

Familiarity and Trust

Many Vietnamese people are familiar with cash pickup services due to their longstanding presence in the remittance market.

The strictly unified connection between local partners like us – FinFan, and our partners like Sendwave, Remitly, Paysend, MoneyGram, and Ria Money Transfer, has built a reputation for reliability and trustworthiness.

This familiarity fosters confidence among recipients who prefer sticking to methods they know and trust (often through a bank counters of FinFan partners).

Disadvantages of Receiving Remittances via Cash Pickup

Although there are certain advantages, receiving remittances via cash pickup also faces some disadvantages, including the following:

Security Concerns

One of the primary concerns with cash pickup is the security risk associated with handling large amounts of cash.

Recipients may face risks of theft or loss, especially when transporting or storing cash. Unlike digital payments or bank transfers, cash does not offer the same level of security or protection against theft.

Lack of Digital Records

Cash transactions do not provide digital records, which can be a drawback for tracking and managing finances.

Unlike bank transfers or digital payments that offer detailed transaction histories, cash pickup lacks such documentation.

This can make it challenging for recipients to keep accurate records or provide proof of transaction for financial planning or disputes.

Potential for Higher Fees

Although cash pickup is often cost-effective for senders, recipients may encounter higher fees at the pickup location.

Some service providers or agents may charge additional fees for processing or handling the cash, which can reduce the total amount received.

It is important for both senders and recipients to be aware of any potential fees and how they may impact the overall amount of the remittance.

Inconvenience in Managing Large Amounts

Managing large amounts of cash can be cumbersome and inconvenient. Recipients may need to visit a pickup location in person and handle substantial sums of money, which can be impractical for regular transactions.

The need to carry or store large amounts of cash can also pose additional logistical challenges.

Limited Financial Services Integration

Cash pickup does not integrate with other financial services such as savings accounts or investment opportunities.

Unlike digital transfers that can be directly deposited into a bank account, cash pickup requires recipients to handle the money separately, potentially missing out on opportunities for financial growth or savings.

The Process of Cash Pickup Remittance through FinFan’s Partners

Step 1: Initiating the Transfer

The sender begins by using a remittance service provider that are partners with FinFan like Sendwave, Remitly, Paysend, MoneyGram, and Ria Money Transferto initiate the transfer. This can be done online or in person at a local agent (only with MoneyGram, and Ria Money Transfer).

The sender provides the necessary details, including the recipient's information, and selects “cash pickup” in the payment method section.

Step 2: Processing and Notification

Once the transfer is processed, the sender receives a reference number and other relevant details. These are communicated to the recipient, who will need them to collect the cash.

Step 3: Collecting the Cash

The recipient visits the local bank counter of our partner banks with a valid ID and the reference number. After verification, they can collect the cash, and complete the transaction.

Conclusion Regarding Cash Pickup as a Method for Remittance from the US to Vietnam

While cash pickup remains a popular and practical method for receiving remittances, it is important to consider its disadvantages.

Security concerns, limited pickup locations, lack of digital records, potential fees, inconvenience in managing large amounts, and limited financial services integration are key factors that can impact the remittance experience.

Understanding these drawbacks can help individuals make informed decisions about the most suitable method for receiving funds and explore alternative options that may better meet their needs.

This article was curated and authored by FinFan's market research and development team, alongside our marketing department.

About FinFan

FinFan is a cross-border embedded financial services company that focuses on mass disbursement, fund collection, card processing, IBAN, and digital APMs solutions, which can provide valuable input and integration on and for the same.

FinFan is already integrated with almost the world's well-known MTOs, PSPs, switch, and core fintech platforms such as Money Gram, Thunes, Qiwi, Remitly, World Remit, Bancore, PaySend, Terrapay, Ria Money Transfer (Euronet), Dlocal, Ripple, TripleA, FoMo Pay, Wings, etc.

For more information, please get in touch with us through:

🌐https://finfan.io

📞(+84) 2866 85 3317

✉ support@finfan.vn

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