Velmie, a financial technology provider that has been developing advanced software solutions to financial institutions and entrepreneurs for almost a decade, expanded its range of white-label products in early 2020 when it launched its blockchain-powered remittance platform.
This innovative payment solution enables quicker cross-border transactions at a fraction of the cost of other international money transfer options.
Every year hundreds of billions of dollars are transferred internationally by businesses and individuals who have emigrated from their home countries. World Bank figures show that total annual remittance flows amounted to $689 billion in 2018, growing from $633 billion in 2017.
Banks, the most expensive remittance channel, according to the Bank, charging an average fee of 11%. Post offices followed, costing more than 7%. Fees on international bank transfers have been such a concern for United Nations that it has set a 2030 Sustainable Development Goals' target to reduce remittance transaction costs to less than 3% from their current estimated average 7.1%.
With the advent of mobile wallets powered by blockchain technology, however, a huge change is underway in how international payments are made. Mobile wallets powered by blockchain are becoming the most efficient, transparent and secure way to facilitate international payments. Transactions are based on distributed ledger technology (DLT) rather than processed through various intermediaries in the formal banking network.
Blockchain is well suited to processing remittance payments because transactions are highly secure, with records verified by a network of computers versus by one party or bank, and transactions visible to all parties versus held in a central database.
The key benefits for individuals and businesses making cross-border payments on blockchain-powered mobile wallets are that costs are substantially lower, and the payment far quicker than conventional bank international payments or money transfers.
The process is also more convenient and less administratively intensive. Given that payments are made from mobile wallet to mobile wallet, the recipient does not need a bank account. Blockchain also simplifies the Know You Client regulatory requirements by enabling individuals and businesses to create a self-sovereign identity, which allows them to manage and own their digital identities, including their accounts and personal data.
In response to the significant potential demand and benefits of mobile cross-border payments, Velmie has developed its white-label remittance platform. The solution now supports more than 30 currencies worldwide, with an advanced currency conversion engine powered by live market feeds and revenue optimization algorithms.
Customers can enjoy a cutting-edge mobile wallet application to set up accounts, send money to friends from the address book, execute QR payments, manage payment cards and a lot more.