The MIT-backed international remittance blockchain based platform, SendFriend, took a giant step to smoothen its cross-border remittance services. It utilized the Ripple’s Xrapid technology to accomplish an impressive goal of slashing remittance cost by 65%.
This arrangement will enable the international money transfer company to carry out transactions without involving banks or other financial intermediaries. It would also enable them to carry out transactions faster at a cheaper rate because they have been able to cut off arbitrary third-party charges.
“Announcement: It is reported that @sendfriendinc are using xRapid soon.”
Cross-border payments is an on-demand kind of service, but very frustrating in some parts of the globe because of different regulations from both the government and financial intermediaries like banks. Ripple is a financial tech company that has identified this need and came up with a solution by providing blockchain decentralized tools which can make cross-border payment, a better experience.
Enabled by MIT, the SendFriend project was initially a platform with a purpose to help overseas workers send more money back home at a cheaper rate.
The firm has now leveraged on Ripple’s financial tool Xrapid to enhance its services as well as reducing remittance cost. The platform enables emigrants to transfer funds across borders using a distributed ledger.
Founded and developed by David Lighton, SendFriend has won MIT Media Lab Transactional Innovation Alliance Award.
SendFriend CEO was full of praise for Ripple’s XRP powered Xrapid, saying it allows them to be more efficient;
“That allows us on the back end to be more efficient with our capital. These are real-time settlements so we don’t have to do pre-funding, we don’t have to park money in the receiving corridor and then manage the foreign exchange risk. We can just do it one by one as the transactions go through.”
The team consists of knowledgeable experts in the global payment system, like ex-WorldBank and ex-MoneyGram staff.
Presently, the team backing the xRapid-enabled system consists of giants like Barclays, TechStars, and Mahindra Finance.
SendFriend is currently seeking remittance license in the United States, also proposing that New Jersey residents would soon be able to transfer money to their Philippine friends.