Global fintech company Hecto Financial is expanding its business scope from its corporate-to-corporate foreign exchange services to include individual-to-person overseas remittances.
Hecto Financial announced on March 4th that it had received approval from the financial authorities to operate a "small-sum overseas remittance business." Based on this license, the company plans to fully launch a peer-to-peer overseas remittance service, while also leveraging it to strengthen the competitiveness of its existing overseas settlement business and launch new businesses such as stablecoin settlement.
Hecto Financial plans to leverage its newly acquired license to target the peer-to-peer international remittance market. According to Bank of Korea data, the domestic international remittance market is steadily growing, from $3.117 billion in 2022 to $3.415 billion in 2023 and $3.454 billion in 2024. Furthermore, starting this year, the annual limit for undocumented international remittances between individuals will be unified to $100,000, regardless of whether the individual is a bank or non-bank, which is expected to further stimulate the market entry of fintech companies.
Hecto Financial plans to launch a foreign exchange remittance platform within the year, providing a single system for payments for small and medium-sized businesses and international remittances between individuals. In anticipation of the enactment of digital asset-related laws and regulations, the company is also preparing a service combining digital wallets and foreign exchange remittances for individual customers, including foreign residents and overseas workers.
With this license, Hecto Financial can now independently operate its foreign exchange functions, which previously relied on banking infrastructure. This is expected to enhance the competitiveness and profitability of its existing overseas settlement services by streamlining transaction structures, reducing costs, and improving processing speeds. Currently, based on its Other Specialized Foreign Exchange License, the company provides B2B foreign exchange services, including trade settlements and overseas business settlements, to corporate clients. This business, which began with six clients in 2023, is experiencing rapid growth, currently expanding to over 40.
Hecto Financial is also preparing for stablecoin-based settlement services. The company has already secured cross-border payment infrastructure utilizing stablecoins by participating in Circle's CPN, the global stablecoin payment and settlement network, the issuer of USDC. Going forward, the company plans to expand its business to next-generation financial services, including stablecoin-based global remittances and tokenized securities (STO) settlements, by linking digital asset payments and foreign exchange services within institutional settings.
A Hecto Financial official explained that with this approval, they have established a foreign exchange service system that provides both foreign exchange services for corporations and overseas remittances between individuals.
In the fintech industry, competition is intensifying for global remittance services based on stablecoins and digital asset payments.
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