[Finterest] Pomelo: a new card that earns you Grab points when you remit money from US

The San Francisco-based fintech lets you use its charge card to send money from the United States to the Philippines on credit while also earning Grab rewards

MANILA, Philippines – If you’re an overseas Filipino looking for a better way to send money home, Pomelo might be worth checking out.

The San Francisco-based fintech says that it’s the first to combine international money transfers with consumer credit, letting you remit funds instantly from the United States on credit — and now with the added bonus of earning Grab rewards too.

Founded in 2020, Pomelo entered the remittance scene in 2022, with the Philippines as its first corridor. Currently, you can transfer money through Pomelo using any debit card, but opting to use its own cards gives you extra perks.

“You can use any debit card to remit with Pomelo, but when you use Pomelo Mastercard, you get more points, no transfer fees, and lower minimum send amounts,” Pomelo chief marketing officer Ladd Martin told Rappler.

Pomelo offers two options — the Pomelo Mastercard and Pomelo Secured Mastercard — both of which allow you to remit money to the Philippines on credit, similar to a traditional credit card. However, keep in mind that these aren’t credit cards; they’re charge cards, meaning balances must be paid in full each month to avoid hefty late fees.

“The Pomelo Mastercard and Pomelo Secured Mastercard are charge cards, where balances must be paid in full the following month,” Martin said. “The difference is that for those who qualify for the Pomelo Secured Mastercard, a deposit is required to set your credit limit. The benefit of this is that your remittance and payment history will be reported to the credit bureau, so you can build your credit.”

You can apply for a card directly through the app, and there’s no need to wait for a physical card. Once you’re set up, you can use the app to remit money from the US to a GCash wallet or Philippine bank account, with transfers typically reflecting within minutes. 

Aside from sending remittances, you can also use the Pomelo charge cards anywhere that Mastercard is accepted, in physical locations or online.

Rewards program for remittances

Pomelo recently launched Pomelo Points, which it says is the industry’s first rewards program for money transfers.

“Today marks another industry first — we’re introducing the only points program in remittance,” said Pomelo founder and CEO Eric Velasquez Frenkiel in a press release. “By combining zero-fee transfers with the ability to earn points, we’re helping customers send extra joy to their loved ones, all while building their financial future.”

So how does it work? Pomelo users earn 2 points per $1 spent using the Pomelo Mastercard, including remittances, and 1 point per $1 transferred when using a debit card. Points can also be earned through everyday purchases made with a Pomelo card, except for transactions like balance transfers, cash advances, and gambling-related payments.

For now, Southeast Asian super app Grab is the only rewards partner, allowing users to redeem points for Grab rides, food delivery, and other services in the Philippines. Pomelo’s chief marketing officer told Rappler that they will “likely have more partners in the future.”

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If you’re an OFW in the US looking for a way to send money without fees, build credit, and earn Grab rewards along the way, Pomelo might just be the card for you. Another way to skip high bank fees is through crypto remittances, which involve converting your funds into stablecoins and sending them via a crypto exchange like Coins.ph. – Rappler.com

Finterest is Rappler’s series that demystifies the world of money and gives practical advice on managing your personal finances.

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