Tang App is working to make remittances from the United States to the Philippines more convenient and accessible
The United States is home to the largest number of overseas Filipino workers (OFW), with more than 2 million people said to be living there as of 2018 records from the Migration Policy Institute. But transferring money back home, for overseas workers, can sometimes be complex and costly. The issue is further complicated by the fact that more than 70 percent of adult Filipinos do not have a bank account. Armed with the hope of helping her countrypeople send money back home easily and in turn, improve financial inclusion in the Philippines, Rebecca Kersch started Tang App.
Inspired by the story of her aunt, who is an OFW, the 2021 Gen.T honouree created her peer-to-peer mobile transaction and payments app that allows users in the US to send money back to the Philippines. The company's name is a play on the Tagalog word, tanggap, which means to receive, and stands for transact and go, says Kersch.
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One of the biggest selling points of the Tang App is its straightforward user experience. Users can send as little as US$10 and a maximum of US$500 a day. There are no hidden fees and each transaction is charged a standard 3-percent fee regardless of the amount. For a country with a sachet economy like the Philippines, where things are often bought for single use, the low minimum amount is often beneficial.
“[Small amounts] can go such a long way,” says Kersch. “The problem [with bigger amounts] is that you have no control over what’s done with the money [you send]. Let's say you’re sending US$500 [to your family] and two weeks later, you hear, ‘I need another US$200’. Tang App gives senders more control over their money and allows them to ask, ‘What is the money for?’”
Inspired by the story of her aunt, who is an OFW, the 2021 Gen.T honouree created her peer-to-peer mobile transaction and payments app that allows users in the US to send money back to the Philippines. The company's name is a play on the Tagalog word, tanggap, which means to receive, and stands for transact and go, says Kersch.
Read also: Nadine Lustre launches her official YouTube channel
One of the biggest selling points of the Tang App is its straightforward user experience. Users can send as little as US$10 and a maximum of US$500 a day. There are no hidden fees and each transaction is charged a standard 3-percent fee regardless of the amount. For a country with a sachet economy like the Philippines, where things are often bought for single use, the low minimum amount is often beneficial.
“[Small amounts] can go such a long way,” says Kersch. “The problem [with bigger amounts] is that you have no control over what’s done with the money [you send]. Let's say you’re sending US$500 [to your family] and two weeks later, you hear, ‘I need another US$200’. Tang App gives senders more control over their money and allows them to ask, ‘What is the money for?’”
Above Kersch with her team at a Tang App event in Manila (Photo: Tang App)
At the end of the day, Kersch explains that her company’s social mission is to improve the lives of migrant workers and the unbanked. Tang App is currently focused on providing its services to OFW in the US, but Kersch says other countries with a growing Filipino population such as Canada and the Middle East are being considered for its future expansion plans.
With a growing base of users, cybersecurity is a top priority for the company, says Kersch. “Our architecture is as robust as it can be against vulnerabilities. Our data is stored encrypted on one server located somewhere in the East Coast [of the US] and our backup is in the West Coast. We are also staying on top of trends and making sure that we are aware of the newest ways [we can be attacked].” Tang App has been attacked before, but none have succeeded in bypassing its security features.
Kersch says Tang App’s transaction volume has an average month-on-month organic growth rate of about 36 percent. Much of it is due to word of mouth from Filipinos living in the United States. “[We would get one user] and in a week or two, we'd see [more users] with the same last names,” she says.
On why she thinks her three-year-old Tang App can gain for itself a strong position within the Philippines’ fintech sector, Kersch says: “The Philippines is at a good tipping point. It’s still a cash-loving country, but it’s at a point where the millennials and Gen Z are barely using cash anymore. I also see more existing financial institutions working closely with the more innovative tech and finance options out there.”
In 2021, Tang App closed an oversubscribed US$1.2 million angel round from investors in the US and the Philippines including Yun-Fang Juan, who was one of the first engineers at Facebook, and Katrina Razon, a startup investor and producer of the eco-conscious Wonderfruit Festival. According to the company, it is currently raising US$2.5 million in seed funding from venture capital firms and angel investors.
With a growing base of users, cybersecurity is a top priority for the company, says Kersch. “Our architecture is as robust as it can be against vulnerabilities. Our data is stored encrypted on one server located somewhere in the East Coast [of the US] and our backup is in the West Coast. We are also staying on top of trends and making sure that we are aware of the newest ways [we can be attacked].” Tang App has been attacked before, but none have succeeded in bypassing its security features.
Kersch says Tang App’s transaction volume has an average month-on-month organic growth rate of about 36 percent. Much of it is due to word of mouth from Filipinos living in the United States. “[We would get one user] and in a week or two, we'd see [more users] with the same last names,” she says.
On why she thinks her three-year-old Tang App can gain for itself a strong position within the Philippines’ fintech sector, Kersch says: “The Philippines is at a good tipping point. It’s still a cash-loving country, but it’s at a point where the millennials and Gen Z are barely using cash anymore. I also see more existing financial institutions working closely with the more innovative tech and finance options out there.”
In 2021, Tang App closed an oversubscribed US$1.2 million angel round from investors in the US and the Philippines including Yun-Fang Juan, who was one of the first engineers at Facebook, and Katrina Razon, a startup investor and producer of the eco-conscious Wonderfruit Festival. According to the company, it is currently raising US$2.5 million in seed funding from venture capital firms and angel investors.