Startup Spotlight: GoMoney wants to help you get cheap local currency
Of all the times we're forced to overpay when traveling — $5 for a bottle of water at the airport, $25 to check a bag, $30 for in-flight Wi-Fi (seriously) — there is perhaps no more irritating and more seemingly unnecessary cost than the one incurred when changing money into another currency. And don't let that "no-fee" sign in the window of the airport currency exchange fool you — you're paying a fee, regardless of what they want to call it. The best thing you can do is avoid changing money altogether in favor of no-fee credit cards and ATM cards, but sometimes you just can't avoid it. Finally, there are a handful of companies trying to revolutionize currency exchange, one of which is GoMoney.
This startup is working to help travelers get the best possible deal on local currency by exchanging money with other travelers instead of banks. We caught up GoMoney's founder and CEO, Maurício Pires, to learn how the company plans to disrupt the industry and change travel for the better.
Road Warrior Voices: What is GoMoney, and what problem does it look to solve?
Maurício Pires: GoMoney is a communication app that connects people who need to exchange money anywhere in the world. It allows people to swap currency using the best rates in market.
After sharing travel experiences, we realized how difficult and expensive it is to exchange money in the world today. Banks and exchange offices do not work 24/7 and are not located in every city. How can people exchange money in a remote location or on a Saturday night? It is almost impossible. Furthermore, tourists are paying extremely high rates to exchange their currency.
RWV: What makes GoMoney more attractive than, say, swapping money at a bank or currency exchange?
MP: We studied the market and found that banks and exchange offices gain approximately 6% profit when selling foreign money and another 6% profit when buying the money. Imagine if this cash could be used by the ones who are actually interested in tourism.
RWV:GoMoney users "buy" and "sell" currency through the app. How does this work?
MP: GoMoney users promote the currencies they want to sell or search for the currency they need. Users then define what currency they will accept, the location where they will promote or search, and how much they wish to negotiate. After finding offers from other users, they can check the profiles of those offering the currency and negotiate the details of the exchange via chat.
People are free to negotiate the price they want; however, GoMoney provides information about the current exchange market and suggests the most advantageous deal for both users. We track the rates that banks and exchange offices are using to buy and sell money and then calculate the most beneficial value.
Our main propose is not to provide a way to buy or sell money; but to connect people who are willing to exchange currency while using a fair exchange rate for everyone.
RWV: How and where do the actual exchanges of the currency take place?
MP: People are meeting to exchange currency after negotiating and checking profile information. Users normally meet at shopping malls, restaurants, cafes and airports. The meeting is usually fast and in most cases no more than three minutes. Some people even share their travel experiences or tips while exchanging the currencies.
RWV: How does GoMoney ensure user privacy and safety?
MP: The safety and well-being of our users are a top priority for the GoMoney team. We use various measures to ensure this security. We use login via Facebook so we can inform the user of mutual friends and check fraudulent profiles. We have also incorporated a rating system where users can share information about their experience with other consumers and block or report users that display harassing or offensive behavior.
GoMoney does not inform our consumer locations to other users. We only use it to define the search area and to present the approximate distance between users. When meeting other users, we encourage people to make the exchange in public and safe places such as shopping malls and cafes.
We also display safety tips that are available on the App and on GoMoney's website. The safety tips educate our users about ethical conduct while using the GoMoney App and when to recognize and report harassment to our team.
Jessica Festa is the founder on the solo and offbeat travel blog, Jessie on a Journey, and the online responsible tourism and culture magazine, Epicure & Culture. She's constantly searching for local experiences beyond the guidebook. You can follow her travels on Facebook, Twitter and Instagram.