The amount of money migrant workers send home to their families is projected to decline 14% in 2021 compared to pre-COVID-19 levels in 2019. The socio-economic impact will devastate families in low- and middle-income countries like Mexico, the Philippines, and India, where many are vulnerable and heavily dependent on global remittances from family members working abroad.
Why COVID-19 Affects Your Ability to Support Family Overseas
The impact of COVID-19 can be especially hard on workers who suffer from informal employment agreements, working in professions that can’t be done remotely, and exclusion from financial assistance programs. What’s worse, traditional money transfer companies continue to charge high transfer fees, which eats away at the money you’ve set aside for your family.
The pandemic has exposed the limitations of traditional ways to send money internationally.
Due to the ongoing pandemic, remittance companies may have to temporarily shut down or reduce their service hours. Travel restrictions and limited public transportation make it difficult for family members to visit branches to collect the money you’ve sent them, causing even more delays.
Across the board, immigrant workers’ incomes are reduced due to the impact of the pandemic, and the remittances they can afford to send to their families are falling.
The pandemic has exposed the limitations of traditional ways to send money internationally.
Immigrant workers need a new system that eliminates expensive transfer fees, puts more money in the hands of struggling families abroad, and makes use of digital technology to offer a safe and instant means of money transfer.
How Pomelo Keeps Your Family Safe
Pomelo offers a fresh approach to sending money overseas. After you sign up for Pomelo and are approved, your family receives a physical and virtual card that they can use to make purchases.
Every time a family member spends, it goes on your credit. All you need to do is pay off your balance in full at the end of the month.
With Pomelo, your family doesn’t need to go to a physical location to collect their money. Family members who are considered vulnerable or high-risk can practice social distancing and minimize person-to-person transactions. And it doesn’t matter if a remittance location shuts down. Your family’s access to the funds is always available to them.
Since Pomelo uses Mastercard Global Network, there’s no need to handle cash at all.
When your family receives their personalized, rechargeable Pomelo cards, they can pay for purchases at store checkouts, on ecommerce sites, for online purchases, and anywhere else they need it. Pomelo can be used everywhere Mastercard credit cards are accepted.
Related: How Immigrants can Build Credit While Supporting Family Overseas
With Pomelo, they can enjoy the convenience and safety of online shopping, and can buy goods and services without leaving their home.
Pomelo keeps your family safe and healthy during times when community emergency measures may be put in place. For example, if their local area is subject to lockdown, you have the peace of mind knowing that your family will be able to continue to pay for what they need. Pomelo currently offers one of the safest ways to send money internationally.
How the Pomelo Card Protects You
Your Pomelo account allows you to support up to three family members abroad. Pomelo sends each family member a personalized card and lets you set a monthly limit for how much each family member can spend.
For example, your mother could need $300 of credit per month and your sister may need $200 per month.
You can use the Pomelo app on your smartphone to track how much each family member has spent during the month and adjust their monthly limits at any time.
If you only want to financially support your family on an occasional basis, you can pause and resume access to credit any time you wish.
Pomelo ensures your money goes to your family where it’s most needed. And there are no fees and no interest.
Avoid common money transfer scams with Pomelo. You won’t incur the risk of entering incorrect beneficiary details when using conventional money transfer agents. Pomelo’s banking services are provided by the Coastal Community Bank, a member of the FDIC, and the Pomelo Card is licensed by Mastercard International.
Pomelo ensures your money goes to your family where it’s most needed. Unlike traditional money transfer services that can charge you up to 7% in transfer fees, there are no fees with Pomelo. Fees are paid by the merchant via interchange and daily foreign exchange rates. Additionally, Pomelo does not charge any interest on your credit. You just need to pay off your credit balance in full at the end of every month.
Why Building Credit Using Pomelo Helps Immigrants
Having a good credit history is as important for immigrants as it is for anyone residing in the United States. Your credit history is all the information contained in your credit report, covering your credit accounts, balances due, and payment history.
Pomelo is a great way to maintain and improve your credit score while financially supporting your family abroad.
You may find it difficult to rent an apartment, buy a car or house, or take out a loan if you don’t have any credit history. And most likely, you will be charged higher rates on any loans or insurance. One of the best ways to gain credit is to get a credit card. The more you use your credit card, the more you will build up your credit history and improve your credit score.
Pomelo functions as a credit card. It’s a great way to maintain and improve your credit score while financially supporting your family abroad.
Individuals with a low credit score will find it hard to obtain a standard credit card from any company. Many companies will not issue a credit card to immigrants who have recently arrived and lack any local credit history.
If you have low or no credit, you can apply for a Pomelo Secured Card. This will provide you with a secured credit line to help you start to build up your credit score. The most important habit for building good credit is simply to pay your bills on time.
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Read next: How Pomelo Compares to Other Remittance Companies
