How CashApp will Disrupt International Money Transfers
Records point out to +500bn. in remittances during 2020
Migrants send money back to their native countries regularly. No matter where they reside, the need for international money transfers and wires is quintessential. In 2020, studies show some percentage points decrease concerning the 2019 volume due to the global pandemic crisis. Forecasts estimate a further decrease in 2021, but the global wire transfers will still move hundreds of billions yearly.
📰The Current Status of Remittances
Despite the numerous alternatives, the two biggest companies in the sector are Western Union and MoneyGram. Moreover, rumors of their merge move around on the internet; such a power move would settle new ways to transfer money. However, their service if not perfect; here, the summary of the fees:
- Western Union: No fee, lower exchange rate.
- MoneyGram: Fee, lower exchange rate.
If we consider another money transfer service, such as TransferWise, the situation is evident with an example:
- TransferWise: Fixed fee, real exchange rate.
💲Example
Sending $USD 1,000 to Mexico with the 3 services:
- Western Union charges $8, and relative/friend receives MXN 19,180. In-store transfer to be cashed for MXN in the destination. Ready in minutes.
- MoneyGram charges $5, and relative/friend receives MXN 19,666. Online transfer to be cashed in destination for MXN. Ready in minutes.
- TransferWise charges a total of $11.44 as commission, and the receiver cashes MXN 19,577. The transfer is not immediate.
In this example, MoneyGram delivers the most amount of MXN to the receiver, while costs are notably lower in online transactions. CashApp collaborators would charge around 0.5% commission. Thus, the receiver would cash 99.5% of the USD value, MXN 19,690, which beats the market's best current services.
😀CashApp: Cash and Crypto for Everyone
While most newcomers may not understand how the blockchain works, everyone does understand the value of money. Currently, services that minimize fees while retaining most of the money value are a must. What’s more, traditional money transfer companies adapt their fees according to a series of criteria:
- Country of residence/destination
- Amount to transfer,
- Method to transfer or cash out in destination.
However, our CashApp solution maximizes the value of your money and adds up on convenience. Collaborators will offer different rates to assist in the transfer. Moreover, the cash out can be scheduled at the best convenience by relying on the collaborator network. Worry not for the blockchain or the crypto — send money to your beloved ones paying less.
🗨️Social Media
We are currently heading down to developing the hybrid exchange and preparing for our presale, announced in a separate post. In the meantime, stay tuned with the latest and greatest:
- Telegram: https://t.me/fnxexchange
- Twitter: https://twitter.com/FNX_Exchange
- Discord: https://discord.gg/2uqHBGxhUG
- Blog: https://medium.com/@fnx
