New Startups Offer Better Services than Banks Are Born.


Banking entities, which make money transfers, charge excessively for the use of the aforementioned service, instead of directly charging the fees, the big banks are quoted in the difference between the exchange rates of the money markets and the rate they offer To customers, what is known as the “margin FX”.

“Santander made 585 million euros with money transfers, which is equivalent to almost one-tenth of its 2016 global profit of 6,200 million euros, and charges six times more than its rival Transferwise for sending 10,000 UK pounds to Spain”.

A team of financial experts from Guardian Money informed Santander executives that new companies entering the money transfer business are “attacking the profitable sectors” of the bank’s business, pointing out that: 10% of profits Of the group at risk when reassessing international transfers.

It should be noted that the Santander information draws attention to the transfer money transfer company, stating that the service charges “64 euros to move £ 10,000 of Bitcoin startups challenging the large profits of banks to Spain” while “Santander charges € 394 – six times more.” If Santander were to charge the same as Transferwise, “its revenues will collapse from 585 million euros to 95 million euros, a fall of 84%,” Guardian Money wrote.

It is noteworthy that, Transferwise fueled in January 2011 and headquartered in London, offers a peer money transfer service with eight offices around the world. The company says it has more than one million customers and processes more than $ 700 million in transactions each month. Unfortunately, the company declares in its “Acceptable Use Policy” that it does not provide services to companies that involve bitcoin and other cryptocurrences.

Bitcoin Startups defies the profits of big banks. Many money transfer companies use Bitcoin in their businesses today. Most of them offer low rates and no transfer fees.

According to Luis Buenaventura, technology director of the Remittances Solution Bitcoin Bloom Solutions, who has also written a book on remittances. He said that Bitcoin’s “strongest use case was probably remittances,” at least in his country, the Philippines. The Bloom Solutions website claims to provide a solution for agents and resellers in the international remittance market, a way to “reduce their international settlement and transaction costs by up to 50%”.

Similarly, Coinpip, based in Singapore, is an example of a Bitcoin remittance company offering services in more than 40 countries around the world. The company charges “no foreign exchange and other hidden charges,” says its website.

Also Abra, who has a different business model. The startup uses Bitcoin, smart contracts and a network of peer-to-peer human cashiers to transfer money directly from a sender to the recipient globally without an intermediary. The company’s recently launched application does not charge transfer fees and announces “low exchange rates”, which allows users to add and withdraw funds in bitcoin.

In the same aspect is Bitspark, based in Hong Kong, which offers remittance services with bitcoin support in five different currencies.

Reference: nigeriatoday.ng

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