IN keeping with commitments made to shareholders to curb profit erosion, financial outfit Lasco Financial Services (LSFL) struck a new deal with Remitly Money Transfer to improve market share for its remittance business.

The new partnership is one of several initiatives being actioned by the company to grow revenue for its core remittance business, as it works to cauterise falling revenues in a market troubled by tight competition and cheaper transaction fees.

LSFL has long been a business partner of Remitly, but Managing Director Jacinth Hall-Tracey said new opportunities have led to the development of that relationship.

“We have been in contract for a while and received digital payments through Remitly from Visa direct transfers to our card, but we started getting payments through our cash disbursing network recently. This is currently the bigger opportunity for our agents and ourselves,” Hall-Tracey told the Jamaica Observer.

Remitly Money now makes up three cash distribution agents in LSFL’s network of remittance service providers. The company is said to be a prominent player in the global money transfer market and consistently ranks among the top five companies due to its competitive exchange rates, low fees and wide-reaching services.

The outgrowth in business relations comes at a time when LASF is working to grow volume transactions and stabilise revenue that the company says it is losing as online remittance transaction fees get cheaper.

For the first quarter ending June, LFSL posted consolidated income of $537.1 million, which represents a 6.4 per cent decrease or $37.2 million when compared with the corresponding 2023-2024 first quarter.

Profit for the period was $17.8 million, a marginal fall-off from the previous first quarter, which was $18.8 million; a result of the reduced revenues from some key segments. LSFL’s consolidated accounts are made of business from its remittance arm as well as the microlending business, Lasco Microfinance.

In addition to the development of new business agreements with partner agents, Hall-Tracey said LASF is actively seeking opportunities to support small business owners impacted by the recent passage of Hurricane Beryl through loan disbursements.

“The recent hurricane and the impact it had on small operators, though concentrated in the south coast, will have a ripple effect on the rest of the economy. We are currently conducting an assessment of the impact on the loan customers of Lasco Microfinance and will be providing the appropriate assistance where needed,” she said.

Further, LSFL will be launching the MoneyGram ‘Direct to Card’ services by end-September.

“This is a highly desirable service which will allow any cardholder to input their MoneyGram reference number into our LASCO Gold Visa Prepaid card mobile app or website and pull their own money transfer at anytime and anywhere; the ultimate in convenience which advances LFSL as a key digital remittance service provider,” she said in explaining the concept in the company’s just-released first quarter results ending June 2024.

Hall-Tracey is upbeat about the performance of the LASCO Gold Visa Prepaid card which was launched back in 2021. The card, which is said to be beneficial as a remittance tool, is also marketed as ideal for businesses managing disbursements or families overseeing spending for parents and children.

During the quarter, LFSL launched several collaborations as part of its rewards programmes and has promised to develop its rewards program.

“The market can expect more exciting collaborations in the coming periods,” the company said.

During the first quarter, LSFL also established several key relationships anticipated to drive growth in its merchant services segment. The company that although that segment currently contributes modestly to overall income, its relevance is growing as merchants increasingly adopt digital payment options.

The company said it is focused on facilitating payment acceptance for small businesses, leveraging its competitive edge through streamlined service onboarding and robust customer support.