- SendFriend is excited about the results of Ripple’s On-Demand Liquidity payment solution, which saves up to 80% of the transfer fee.
- SendFriend uses Ripple’s native token, XRP, to process cross-border payments worldwide.
In the past year, more than $45 billion in charges for remittances to migrants who have sent money home to their families have been spent around the world. SendFriend is committed to helping these people by processing transactions quickly, reliably and in real time through the use of Ripple’s software solutions.
SendFriend can save up to 80% on remittance fees with Ripple
The idea for SendFriend came from David Lighton, CEO of SendFriend, during his time in Haiti. In 2010 a strong earthquake raged there and many things on the ground were destroyed. During this time, rapid access to financial resources was very important and could even decide the lives and deaths of people.
Government officials in Haiti do not pay taxes on the collection of aid funds from the State Department, but the ordinary local people pay disproportionately high fees of 10% per remittance for remittances. Lighton describes that these financial resources are urgently needed in other places of the economy:
This is such a serious problem that number ten of the sustainable development goals is to reduce the cost of remittance payments to three percent by 2030.
These expensive fees are incurred because international payments have to be pre-financed on accounts in the respective target currencies. To increase speed, SendFriend relies on Ripple’s On-Demand Liquidity (ODL) technology to process transfers in real time at low cost.
ODL enables RippleNet customers to bridge transactions in two different Fiat currencies in seconds and ensure that the transaction can be immediately sent and received on both sides in local currency. Lighton executes:
What is fabulous about the Blockchain and what Ripple’s product brings to the table is that it eliminates the need for this working capital. We can now raise liquidity on demand and reduce transaction costs by up to 75%.
In direct competition comparison with Western Union, which charge up to 10% to make a payment, SendFriend can do it for 2%. Lighton further describes that there are four major markets for wire transfers: India, China, Philippines and Mexico. The Philippines are open to payments in cryptocurrencies and have not introduced aggressive capital controls.
Confidence in new technologies such as blockchain is growing
A few days ago, Ripple presented the second Payments Report, which shows that many companies have taken the first hurdle and are piloting the blockchain in their own business processes. The report describes (freely translated):
The most difficult point of any new technology is the transition from the first users to the first majority. This year we have found that 35% of respondents are in production. We have overcome the abyss of adoption.
For many companies, speed is the strongest argument for using the blockchain compared to traditional financial instruments, closely followed by reliability and easy market access. Another important factor for further progress in adaptation is the development of a uniform regulatory framework to which founders of new innovative projects can orient themselves and which does not deter them from moving to other countries.
Ripple has set up a subsidiary in Washington D.C. specifically for this purpose in order to strengthen contact between the country’s decision-makers and the local regulatory authorities. In addition, Ripple has joined a global regulatory initiative that advises governments around the world and seeks to easily prepare and disseminate new technical knowledge.