SendFriend is a remittance firm that uses Ripple’s on-demand liquidity service which saves their customers up to 80 percent in remittance fees, said CEO of SendFriend, David Lighton.
In an official blog post, Ripple explained how SendFriend is leveraging Ripple’s product to offer affordable remittance services. It was noted that SendFriend offers low-cost remittance service by using the digital asset XRP and On-demand liquidity which removes the need for pre-funding to settle/execute cross-border transactions.
However, speaking to Ripple’s Ginger Baker at the fireside chat at Ripple’s University Blockchain Research Initiative (UBRI) Connect Conference, SendFriend’s David Linghton said that the firm is using RippleNet’s On-Demand Liquidity (ODL) solution to reduce the cost of processing transactions as well as to increase the speed to settle transactions.
“What’s fabulous about blockchain and what Ripple’s product brings to the table is that you remove the need for that working capital. We can now source liquidity, on-demand and depress those transaction costs by up to 75%,” explained Lighton.
He went on to elaborate his vision with a reasoning – he said as Ripple is eliminating the need for working capital, SendFriend aims to “pass on these savings to their customer”. Linghton further added that they charge only 2% to service a payment whereas payment firm such as Western Union takes 10% from their customers.
Linghton further pointed out that India, China, Philippines, and Mexico are four big markets with a high demand for remittance service. He embraced the regulator’s effortless view towards capital controls, especially for digital assets in Philippines. He added;
“As the businesses of e-commerce firms like Amazon become more and more global, there is more demand for foreign exchange, to fulfill orders. That’s a space we really want to focus on to save not just remittance users money, but people buying average products online that need to do cross-currency payments, and that market is growing rapidly”
Essentially, SendFriend started using the ODL payment solution early this year and currently offering remittance services in the Philippines. More so, the firm is backed by few prominent investors including MasterCard Foundation, Barclays and Ripple.
In a nutshell, Ripple’s ODL solution is on a rise and as per Ripple, over two dozen customers are currently using ODL solution, few of which include Interbank Peru, FlashFX, Viamericas, MoneyGram, goLance and many other.
Image Source – Ripple Blog
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