Philippine fintech app MarCoPay addresses seafarers’ needs

Fintech startup MarCoPay is expanding its financial services for Filipino seamen, introducing QR-code payments and loans tailored to meet their unique needs, making their lives at sea more convenient and secure.

“As a one-stop financial platform for seafarers in the Philippines, we offer value that local financial institutions cannot,” said Toshiaki Fujioka, president of MarCoPay, in an interview with Nikkei Asia.

Based in Manila, MarCoPay provides a range of digital services, including e-money wage payments and cash remittances through a mobile app, and offers a streamlined process for applying for loans and insurance.

Fujioka announced that the company will introduce a QR-code payment service in the Philippine market this fall. This new feature will allow customers to shop at supermarkets and other retailers by simply scanning a QR code. Additionally, MarCoPay has lowered its remittance fees.

Seafarers, who often spend months at sea, traditionally receive their salaries in cash, posing security risks and complicating money transfers home. Crewing companies also incur security costs. With MarCoPay, seafarers can receive their salaries as e-money via the app, transfer funds to local bank accounts online, and benefit from discounted remittance fees. A partnership with Visa allows customers to use prepaid Visa cards while overseas.

The Philippines is the largest supplier of merchant sailors globally, with over 223,000 seafarers in 2024, according to British maritime research specialist Drewry, accounting for about 15% of the global total. Seafarers are among the best-paid workers in the Philippines.

Founded in Manila in 2019 as a joint venture between Japanese transport company Nippon Yusen and Philippine logistics giant Transnational Diversified Group, MarCoPay has rapidly expanded. Filipino sailors comprise 70% of Nippon Yusen crews. Japanese trading house Marubeni and MUFG Bank later acquired stakes in the startup, viewing it as an opportunity to expand their presence in Southeast Asia’s banking and healthcare sectors.

“The number of registered users has surpassed 20,000. We have contracts with 50 out of 300 crewing companies for seafarers in the Philippines. We expect our customer base to grow to 50,000 to 60,000 soon,” Fujioka said. “We ultimately aim to assist sailors with asset management to promote financial inclusion,” he added, noting that MarCoPay has secured a contract with a U.S. crewing company employing many Filipino sailors.

Advertisement

MarCoPay partners with local banks and insurance companies, such as BDO Unibank and Security Bank, to enhance access to financial services. Seafarers often struggle to obtain credit despite steady salaries due to their term contracts, and financial institutions find it challenging to reach them at sea. The app helps bridge this gap.

Originally, MarCoPay aimed to help seafarers purchase agricultural equipment, as many sailors and their families are involved in farming at home. “We receive over 1,000 inquiries monthly about purchasing Kubota’s agricultural machines,” Fujioka said.

Remittances to the Philippines, including those from seafarers, totaled $40 billion in 2023, equivalent to 9.2% of the country’s GDP, making it the fourth-largest globally, behind India, Mexico, and China, according to World Bank data.

Competition in Southeast Asia’s fintech market is intense and growing. A study by Google, Temasek Holdings, and Bain & Co. predicts that Southeast Asia’s digital payment market will reach a transaction value of $2.1 trillion by 2030, three times the figure in 2021. Major players like Grab and Gojek are expanding rapidly, and GCash, backed by China’s Ant Group, is also growing in the Philippines with tens of millions of users.

Fujioka emphasized that MarCoPay plans to differentiate itself by focusing on the niche market of seafarers, setting it apart from super-apps like Grab and Gojek. “Our app attracts customers because it is tailored to the unique needs of the Philippines. By filling these gaps, we believe in developing our strengths rather than mimicking other companies,” Fujioka said.

Source: asia.nikkei.com