It’s 2019. By now, various business sectors are already looking at the benefits blockchain technology has to offer.
Just to name a few - banking, healthcare, politics, governance, real estate, and security.
And indeed, it comes as no surprise that the international remittance industry which is worth billions of dollars is also turning to blockchain.
Ripple at the Forefront - Like it or not
Headquartered in the U.S., it appears that Ripple Labs Inc. is keen to take the bull by the horns. The company launched its own cryptocurrency – XRP – primarily for use by enterprises.
Banks as well as other financial organizations have already employed the use of XRP as an on-demand and secure funding alternative that gives them quick and easy access to liquidity for carrying out cross-border payments.
The first prominent overseas money transfer company to use Ripple’s technology was MoneyGram.
It started by putting xRapid, a Ripple service, through a testing phase.
Western Union, another major player from this realm, followed suit soon after. It did not take long for Santander, a Spanish bank, to launch One Pay FX, the first mobile blockchain-based app for international payments. It relied on Ripple’s xCurrent technology.
From there it just snowballed: So far, Ripple has partnered with more than 100 financial organizations from the world over. Some of them include UBS, American Express, the Japan Bank Consortium, Itau Unibanco Holding SA, Crédit Agricol, IndusInd Bank, and the Royal Bank of Canada.
Will Blockchain Reduce Transfer Costs?
Most banks are known to charge steep fees when carrying out overseas money transfers.
According to a 2016 report from InfoSys, the average cost of using the services of online money transfer companies is noticeably lower than banks. However, even online money transfer companies tend to rely on banks to function as intermediaries.
Blockchain holds the potential to offer a more cost-effective solution without the need of intermediaries.
Since public decentralized ledgers serve as the basis of cryptocurrencies, just about anyone may send or receive money without requiring verification from third parties.
By eliminating the middlemen, reduced costs is a given.
Wider Reach: Bitpesa as a case in point
Scores of people in developing countries in parts of Asia, South America, and Africa may benefit significantly through blockchain technology because they still remain under-banked.
Since the use of mobile phones is prevalent even in these regions, people can turn to blockchain-based mobile wallets to make or receive cross-border payments.
BitPesa, a digital foreign exchange and payment platform that facilitates B2B payments in Kenya, Uganda, Nigeria, Senegal, Ghana, and Morocco, leverages blockchain settlement for quick and cost-effective payments to and from Africa.
Speed of Settlement
Like we said, traditional overseas money transfer involves the role of banks on both ends, even when you use an online service provider.
Depending on the bank or the overseas money transfer you use, turnaround times may vary from two to five or more days.
Blockchain-based transfers do away with the need for banks, which can reduce processing times significantly. However, it depends on the transaction processing capacity and speed of the given blockchain.
In some cases, crypto transfers can go through in near real-time.
Who’s Made a Mark
Over the past few years, a host of startups emerged that are using blockchain to make international money transfers quicker and cheaper.
Some of these successful service providers include:
- BitPesa (Kenya, founded 2013)
- Abra (Silicone Valley + Philippines, founded 2014)
- Coins.ph (Philippines, founded 2014)
- Circle (US, founded 2013)
An increasing number of overseas money transfer companies are now giving people the ability to make quicker and more cost-effective transfers by relying on blockchain technology.
If the legacy players do not adapt, they may well be let wanting in not too distant a future.
Data is beautiful
Brand development in forex and crypto: Most expensive domain names [Infographic]
Crypto infographics - Most expensive domain names in forex and crypto. Targeted brand development in forex and crypto with domain names.
Top 8 Women in Blockchain Technology [Infographic]
When it comes to women in crypto, the pre-2016 OG heads will probably come up with names like Alena Vranova and Blythe Masters. Alena Vranova is the former CEO of Satoshi Labs, the company that...
Blockchain Consortium in Trade Finance: 6 Notable Networks [Infographic]
The success of trade finance blockchain implementations depends on how widely they are adopted. That's why we have seen businesses form consortia based on similar interests.
Comparing Forex Market with Cryptocurrency Markets [Infographic]
One of the few metrics that cryptocurrency markets have in common with the forex markets in 2018 is the high percentage of total trades being located on few most popular markets.
Blockchain Technology 101: Blockchains, Blocks and the Role of Price [Infographic]
Blockchain technology 101: What is blockchain, what types of blockchains exist and what role does the cryptocurrency price play.
Real-world companies that accept crypto payments [Infographic]
Infographic - Graphic map of businesses that let customers pay in bitcoin.
Infographic: Blockchain Hacks & Crypto Trading Platform heists 2018 vs 2017
Blockchain infographic comparing the biggest crypto heists of 2018 and 2017. In 2017 the focus lied more on ICOs, smart contracts and wallet.
15 crypto kings that are making history with their engagement in the field of cryptocurrencies
Coining The Bucks With Cryptocurrencies Have you ever wondered how much masters of the cryptocurrencies are worth? Like the guy who founded Ethereum, or the one who started Ripple, for example. The answer, in short,...
The Good And The Bad Of ICOs
Infographic: The good and bad of ICOs - Which token sales raised the most money in 2018?
Industry News Releases
Following the Dog bounty hunt marking the end of the Year of Dog for Etheremon,...Read >>
- Crypto Marble dApp Game: Monopoly on Blockchain
- The dApp gaming platform VX Network launched the official VX Wallet in Apple App Store and Google Play
- Etheremon's first Chinese New Year Campaign: Chance to recall two rare mons
- Fuel Games and Cryptokitties bring you "The Cat in the Pack" until the end of January 2019
- Action RPG dApp game Hero of Cryptoworld is starting its character presale
- Libereum, the crypto investment company, acquired Spanish football club Elche CF
I'm a nobody and nobody cares. I like researching business models so that later I can fail miserably anyway. Editor at @BOC__Official.