- Sendfriend integrated with RippleNet’s on-demand Liquidity transaction procedure to increase the speed and affordability of this process.
- Lighton stated that these transaction costs could reduce to 75%.
In today’s modern world, remitters send money to access reliable and fast services. Last year alone, a huge amount of more than $45 Billion was spent as remittance fees by migrants who send money home.
Sendfriend enables this delivery system by using the digital asset XRP and developing on top of the ILP to move funds internationally on-demand basis.
It was Lighton’s innovative idea which bloomed from his 3 years of working experience as a World bank Analyst. He saw a complicated and tedious process that took place while transferring money.
Though the government officials paid no tax on receiving aid monies from the State Department or International Monetary Fund(IMF), 10% of the total cost must levied as a personal remittance fee. Lighton explained that this is a severe problem, and that number ten of the Sustainable Development Goals has a target of cutting down the cost of remittance payments down to three percent by 2030.
International payments require businesses to pre-fund them in their destination currencies to carry out the process, and it is a costly endeavour that ties up working capital. To increase the speed and affordability of this process, Sendfriend integrated with RippleNet’s on-demand Liquidity transaction procedure.
This would eventually remove the need for that working capital since ODL enables RippleNet users to use the XRP technique to link two currencies in a few seconds. This ensures instant payments with lesser troubles. Lighton stated that these transaction costs could reduce to 75%.
He added that their mission is to create affordable processing charges to their customers which means when companies like Western Union can charge up to 10% to service a payment, they charge only 2%. This innovation is earning sendfriend trust within the remittance community throughout the Philippines.
Lighton remarked that they are four big markets in the world for remittances, namely India, China, the Philippines, and Mexico. The Philippine government has to look forward to this issue with keen interest and have escaped from the stronghold of aggressive capital controls of digital assets transactions. They understand that there is a potential to deal with financial inclusion.
Ecommerce sites like Amazon have a broader span of customer outreach globally, and there is hence a higher demand to place the orders successfully. The focus must not be limited to remittance user’s money but also to the need to de cross-currency payments while purchasing online payments.