Puregold moves into remittances

Philippines grocery retailer Puregold Price Club says it is expanding into the remittances business.

The company says the move will increase foot traffic and sales in its 239 stores across the nation.

The remittance business allows local Filipinos to collect funds transferred from overseas foreign workers. Manpower is the Philippines’ single largest source of export income.

Puregold president Vincent Co unveiled the initiative at a press conference, revealing the remittance business will be branded PurePadala.

Co said Puregold’s remittance solution will be unique, allowing those sending cash to stipulate where it is spent.

“Most of the time, around 25 to 30 per cent 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.”

Senders of cash will also be able to stipulate it is not spent on alcohol or tobacco products.

Co said Puregold will partner with 57 remittance partners across 27 countries for the new venture, which formally launches on July 12.

Transaction fees will be waived for the first three months and after that will be lower than the standard rate of 10 pesos.