The high cost of remittances prompted the web-based money transfer agent, Caribcash to launch a service in Guyana to provide a cheaper, more efficient and convenient service.

Caribcash has operations in Africa, Haiti and the Caribbean and is based in New Jersey, USA.

Caribcash launched in Guyana on February 18 following a two year trial operation at the Guyana Post Office Corporation.

Keith C Brotherson, vice chairman of Caribcash and executive director of sales and marketing, says the response to the service has been "phenomenal."

The company hopes to capture one per cent of the Guyanese market (for total remittances locally) this year.

Presently the company receives the most of its traffic from New York and Florida. The company says it has 8,000 locations in the US and in Guyana, Georgetown, Berbice and Linden top the list of areas/regions for remittance receipts through Caribcash.

"Our population may not be high," Brotherson says, "but we do send a lot of money."

Caribcash spent over US$2.5M to get its act together in Guyana and the firm boasts that its transfer rates are competitive.

Caribcash's transfer rates to send up to US$100 is US$10; from US$101 to US$300 - US$15 and from US$301 and more the fee is calculated between 4.5 to 6 per cent.

Brotherson indicates that Caribcash will pay the highest prevailing exchange rate in the country to remittance recipients, meaning Caribcash will match even the exchange rates being offered by cambios and foreign currency dealers on the streets.

In comparison, National Pride's rates are US$8 to send US$100 and US$8 on every additional US$100 being sent. Western Union's rates are US$14 to send US$100; US$21 to send US$200 and this increases by US$7 for every additional US$100 sent. The US$7 being charged by Western Union to send every additional US$100 may not apply to certain large amounts being sent as it may be less.

Caribcash's two-year pilot study showed an increase of up to 200% in business at Christmas periods. The Easter period was also heavy as is the school preparation period in August/September. January and February showed the lowest level of remittance receipts.

Caribcash transfers are now being done by all the post offices in the country. The post office is receiving a fee from Caribcash for use of its post offices, but officials at Caribcash did not disclose how much is paid.

Some 20 persons will also be employed to promote Caribcash's services, Brotherson said. Thirty persons were hired last year to conduct a three-month customer research for the firm.

All post offices are being supplied with computers by Caribcash to facilitate the web-based money transfer services. Fifteen computers will be made available this week, and more will follow until all the post offices are fully connected, Brotherson said. At the moment Guyanese can only receive money from abroad with Caribcash but cannot send money.

Roraima Financial Services (RFS) is the parent company of Caribcash. It is a financial service company incorporated in St Kitts and Nevis in March 2000 and has subsidiaries in New Jersey, USA and Johannesburg, South Africa, according to a Caribcash publication.

Using Caribcash, a customer can initiate a money transfer using the internet (www.oneworldcash.com), a phone, other internet-enabled electronic devices, or at a physical location, and make payments by cash, credit card, check or other acceptable means.

In addition to the web-based money transfer service, RFS is also launching a secured Visa card and Loyalty Smart Card to allow customers to use its card service to settle certain financial transactions in the various locations where the company operates.

In Africa, all of the RFS financial transactions will soon be done via its Loyalty Smart Card, and by the end of the first year, the Caribbean and other locations will migrate to this technology, the Caribcash publication adds.