[THE INVESTOR] CoinoneTransfer, a subsidiary of leading cryptocurrency exchange Coinone, announced on Oct. 22 that it is launching a global remittance service.
The service named Cross (https://crossenf.com/) will be first provided for transactions involving Korean won and Philippine Peso. It plans to expand the service to Japan, China, Thailand and Vietnam.
The 24-hour service charges 1 percent of the total transfer, 80 percent cheaper than commercial banks. To make a swift transfer, the company uses a pre-funding method which is commonly used by small money transfer services.
Until last year when a law allowing non-financial companies to offer global remittances went into effect in Korea, banks dominated cross-border transfers. Services provided by banks take two to five days through SWIFT and charge high fees.
Meanwhile, Cointransfer in May said it would adopt xCurrent, an overseas remittance solution by Ripple, the third-largest cryptocurrency. The real adoption of xCurrent, which enables banks to instantly settle cross-border payments with end-to-end tracking is expected to be launched later this year.
“Our goal is to provide remittances and other payment services using blockchain technologies,” an official of Coinone told The Investor.
Korea’s overseas money transfer industry reached US$10.9 billion in 2017, growing from US$3 billion in 2000.
By Park Ga-young (email@example.com)