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
Blockchain Technology in Mobile App Market: State of the Industry 2020
Blockchain is currently at the top among the new trending technologies that came up in recent years. It is a remarkable innovation for our ever more digitalised world. Blockchain is mostly known as decentralized network,...
New Horizons in Fintech: Payments, Big Data and Partnerships [Infographic]
The global fintech market saw a period of consolidation in 2018, which is exactly what we saw also in terms of price evaluation of crypto assets. In spite of the “crypto winter”, which is apparently...
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 Tech [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...
Infographic: Blockchain Technology, Ledgers, Blocks and the Role of Price
Blockchain technology 101: What is blockchain, what types of blockchains exist and what role does the cryptocurrency price play.
Infographic: The Good And The Bad Of ICOs
Infographic: The good and bad of ICOs - Which token sales raised the most money in 2018?
The Business of Esports: All The Numbers [Infographic]
Esports is a rapidly emerging category as a real sport. It’s even beginning to compete with traditional sports.
Shocking Facts About Cryptocurrency Heists [Infographic]
If there is one question in the history of Bitcoin that cannot be answered with anything more than an estimate, it is the problem of how much of Bitcoin’s supply is actually ever available on...
Comparing Forex Market with Crypto 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.
East vs. West: Which One Sides More With Blockchain?
Digital cash schemes were the holy grail of the late 90s, but since the bitcoin blockchain was invented, suddenly nobody in the West cares.
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.
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,...
Industry News Releases
LocalCryptos, formerly known as LocalEthereum, is currently the most popular non-custodial p2p market for cryptocurrencies....Read >>
- Montenegro to embrace blockchain technology in efforts to join the EU
- The Global Hackaton (April, Los Angeles) comes with free tickets to Crypto Invest Summit
- Etheremon celebrating #ChineseNewYear2019 with a series of bounties (Ends 8:00 AM UTC on Feb 11th)
- 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
Editor for all TDOU’s publications.