Western Union is working with Blockchain service on the Remittances market

Western Union is working with Blockchain service on the Remittances market

Coins.ph has committed itself to using blockchain technology to enable anyone, even those without a bank account, to conduct financial services – by mobile phone. The Philippines is one of the countries where most cash transfers from abroad are made domestically, as many Filipinos work abroad and send money to their families. According to estimates by the World Bank, a total of $ 610 billion has been sent to the so-called remittances market in 2018, and the trend is rising. While providers such as Western Union and Money Gram hold large market shares, there are also more and more startups dedicated to remittances.

Transfer to the e-wallet

Since it is an avowed goal of cyber-devisen, such as Bitcoin, to facilitate cross-border, fast payments, it is fitting that startup-based blockchain technology, such as Coins.ph, will be used to meet this vision. The money transferred from Western Union ends up in the recipient’s e-wallet: “By combining Coins.ph’s payment technology with Western Union’s extensive global network, we offer Filipinos a seamless way to digitally receive money” , summarizes Coins.ph CEO Ron Hose in the WU press release. Once the money is in the app, it can be sent for free to other app users. It can also be used, for example, to pay electricity bills, public transport tickets and goods at participating shops.

Cash transfers soon cheaper?

Although the deal between Western Union and Coins.ph will not make payments cheaper, as the US provider continues to charge for payment processing, more people are gaining access to financial services that do not live close to a WU affiliate or have any Bank account. However, if crypto-technologies continue to prevail in the future and digital transfers are increasingly digital, traditional financial service providers such as Western Union or Moneygram will also be able to cut operational costs and reduce remittance fees, TechCrunch suspects.

image by Shutterstock

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