The High Price of Remittance

Sending money home is most expensive for those who have the least

ARYZE
ARYZE
Aug 30, 2018 · 6 min read

So how much does it cost for these remittances?

For many years businesses like WesternUnion and MoneyGram have held a duopoly on the remittance market. Being the most established, they also have been able to charge high fees for transferring money — this is largely due to the vast network of physical locations that enable customers to send/pick up cash. For many countries that lack proper digital infrastructure the natural way of thinking is the ”cash is king” way.

Source: Remittance Prices — World Bank

The call for digital disruption

It seems that the music may be slowing for these behemoths of remittances. With massive leaps in technological developments, scores of fintech companies seek to challenge the titans of international payments. Everything from cryptocurrencies to e-money issuers are appearing in droves to capture shares in a highly lucrative market. Most are proposing low transaction fees that are made possible by improved technology, as well as added security and quick transfers of value, although without sacrifice.

Stablecoins are crypto-assets that maintain a stable value against a target price (e.g. USD).

There are many use-cases for where stablecoins could provide efficiencies like remittances, salaries, wealth management, trading, lending, store of value, etc. By combining the advantages of blockchain with the trust and stability of traditional fiat currencies, we see the creation of stablecoins.

Article by Carl Jenster

The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of ARYZE.

ARYZE

Developing stable-coins and next-generation digital payment solutions.

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ARYZE

#ARYZE creates digital cash to make payments cheaper, faster and smarter. Join us on Telegram: https://t.me/ARYZE #thewayyoupay

ARYZE

ARYZE

Developing stable-coins and next-generation digital payment solutions.