Current Events in September 2016

There's a new way to send money to people in other countries.

Exchange4free, an Australia-based company offering money transfer, forex, and payment services, has a new chat app that also functions as a way to move money. The company says users will be able to send money to over 100 countries using an instant messaging (IM) platform. The cost will be as low as 0.4% and will carry no transfer fees or commissions.

Company director Mark Lawson said the app, called Money Messenger, uses the IM platform because it is the most universal.

“We believe that our new service offering to customers is both unique and a first within the cross-border FX and money transfer space," he said.

Speed, convenience, and simplicity

Lawson says the app will provide more speed, convenience, and simplicity to the process. With the app, he says clients can register, chat with a customer service rep if needed, request an online quote, and send money instantly.

The company was founded in the UK in 2004 and has since expanded to over 40 countries. It services more than 30,000 clients – both private and corporate – in over 100 countries. It says the Money Messenger app is just a way to build on that.

With the app, it says users will be able to make international bank deposits and distribute cash payouts at more than 200,000 locations and mobile wallet credits.

"New and exciting features and functionality within the Chat App will be rolled out within the next six months, representing another important step for Exchange4free to offer the most innovative and comprehensive suite of remittance and foreign exchange related products at the very best pricing to the market," Lawson said.

The company says it believes there is a niche for Money Messenger, since moving money across borders can still be inefficient, confusing, and expensive.

With the turn of the calendar to September, Walmart is getting serious about holiday shopping. The clearest sign is moving up the start day of its layaway program to September 2.

Layaway is sort of a throwback to an earlier time, before there were credit cards. Consumers who lacked the cash to make a purchase could “lay the item away,” paying a little each week. It was especially popular around the holidays.

Stores like Walmart and Kmart have brought the concept back in recent years, primarily for consumers who don't have credit cards.

According to Walmart, consumers can put select category items on layaway until December 12. There is no fee for opening an account, but a down payment of $10 or 10% of the purchase, whichever is greater, is required.

Categories

Categories eligible for layaway include electronics, toys, infant toys, infant furniture, small appliances, large furniture, auto electronics, select sporting goods, and jewelry. Only in-store purchases are eligible.

Walmart took some heat when it launched its holiday layaway program five years ago. That's because in the beginning, the retailer charged an upfront fee to open an account.

At the time, Sen. Chuck Schumer (D-NY) criticized the program as “hideaways for sky-high interest rates” that consumers wouldn't pay to a credit card company.

Now, most major retailers have adopted layaway programs and have waived the fee to open an account. These accounts proliferated in the wake of the 2008 financial crisis when millions of consumers saw their credit cards unilaterally canceled by lenders or their credit limits reduced.