South Korean payments firm Coinone Transfer has introduced the country’s first blockchain-powered remittance mobile app and web service.
Coinone Transfer is a subsidiary of crypto exchange Coinone that focuses on remittances. In May of this year, Coinone Transfer joined RippleNet to use xCurrent, Ripple’s blockchain solution for cross-border payments and settlement, to allow customers to send vital remittances home to family and friends in countries across Southeast Asia. One of the primary benefits of RippleNet is that it enables banks and payment providers to join together and provide a better experience for all their end users.
The new remittance service, called Cross, is now available through new financial institutions using RippleNet — connections formed with Siam Commercial Bank (SCB) in Thailand and Cebuana Lhuillier in the Philippines. The company is planning to expand the service across Southeast Asia over the coming months.
“Unlike other remittance options in South Korea, Cross does not rely on traditional banking rails,” Ripple said. “Rather, it provides a safe alternative for those with or without a bank account, and the increased payment transparency and reliability inherent to Ripple’s advanced blockchain technology.”
In the past, remittance options in South Korea were limited and the cost of sending a payment was often too high to justify. In July 2017, the government began offering Global Remittance Licenses to non-bank businesses operating remittance services in the country. This allowed FinTech firms including bitcoin mediated foreign currency transfer services to facilitate international money transfers for small funds.
“Friction in global payments is felt universally — from people who want to send money to loved ones but face high costs and slow times, to growing businesses that need to send payments internationally in order scale,” Ripple said. “The new regulations in South Korea combined with the introduction of the new Cross service finally provides these customers with a better way to send money abroad — options that are less costly, faster and more reliable than traditional options.”
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