InstaReM is a digital cross-border money transfer service provider, that entered the European market on June 18th. The company began its initial setup in Australia in the year 2015. Following that, its chief operations started in Singapore, and further extended to Hong Kong, and the rest of Southeast Asia. On June 18th, InstaReM launched in UK with London as its Headquarter.
The company operates on Ripple’s technology for its instant, low-cost, cross-border money transfers.
How blockchain has aided remittance:
Fintech companies also require cooperation from banks to verify and complete the transaction on both ends. Since, blockchain brings decentralization in the equation, it basically means that elimination of banks from the process is possible, leading to lower costs.
As most of our current financial systems run on a centralized infrastructure, it is hard to eliminate the risk of hacking. In a decentralized process, the data cannot be tampered with and the blockchain ledger keeps the authenticity in check. Therefore, the user-base of such companies gets more security and control.
Another feature of this advanced technology is that the transactions are “instant”. Regular cross-border transactions can take several days, while blockchain-backed transfers complete the task in a few seconds.
Prajit Nanu, at the time of InstaReM’s partnership announcement with Ripple, had said:
“The connectivity that Ripple’s innovative blockchain network provides will allow us to offer our customers – including corporates and small businesses – quick, hassle-free payments into BeeTech’s markets.”
According to the World Bank, InstaReM has been the most competitive remittance platform in several Asian corridors, such as Australia to India, Malaysia, the Philippines, and Vietnam through three consecutive quarters. It has also shown much dominance from Singapore to Bangladesh, India, Indonesia, Malaysia, Philippines, and Sri Lanka. It expects a similar success rate in the European corridors as well.
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SendFriend goes live in New Jersey; prepared to take on a $11 billion remittance corridor with Ripple
SendFriend, a next-generation remittance service that focuses on cross-border payments between the U.S. and the Philippines, today announced that it had gone live in the state of New Jersey, via a Twitter announcement.
We’re all excited for our launch, and today is the Day (for New Jersey)! Join thousands of Filipinos and come out to the Philippine American Friendship Committee Parade and check out our booth – We will be here all day! pic.twitter.com/PkcrGChwZ9
— SendFriend (@sendfriendinc) June 23, 2019
Ripple and SendFriend’s partnership was announced in late 2018, with the CEO of the latter, David Lighton, expressing his excitement at a Barclays Event in 2019. At the same event, Lighton also confirmed that SendFriend would be using Ripple’s xRapid payment solution that leverages XRP as a liquidity provider.
There is approximately $11.09 billion transferred between the U.S. and the Philippines in remittances every year. These largely use traditional payment methods that are slow and less efficient, when compared to newly developed blockchain-based solutions. The chart below shows the flow of remittances into the Philippines, with the U.S. accounting for the highest volume.
By using Ripple’s xRapid payment solution, money can easily be transferred in a few seconds. Not only does this save millions in fees by taking away middlemen, but it is also less time consuming.
Although xRapid has slashed fees and time for cross-border payments drastically, it has not gained traction due to a lack of regulatory clarity around cryptocurrencies. On February 11, 2019, SendFriend had announced the provision of an option for Overseas Filipino Workers [OFW] to send money “securely and reliably” across borders, with fees that are “65% lower than the industry average” in one “seamless flow.”
David Lighton had said,
“We are humbled by the support of our investors, who share in our vision to reduce the costs and improve the experience for the millions of Overseas Filipino Workers (OFWs) who send money home to support their families… This investment will allow us to build out our team, focus on community engagement, and marketing efforts.”
A Twitter user @mister_pace, commented,
“Based on these rates. You save about $13 to send 1000 using SendFriend over The next lowest MoneyGram”
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