SendFriend, a new generation remittance service announced that it raised $1.7M in total capital from eminent companies such as MIT Media Lab, Barclays, the Mastercard Foundation, Ripple, Techstars, Mahindra Finance, 2020 Ventures, and 8 Decimal Capital.
The remittance service is powered by Ripple’s blockchain-backed technology xRapid, has been designed especially for Overseas Filipino Workers (OFWs) to securely transfer United Stated Dollars (USD) to Philippine peso (PHP) at the lowest rate available. This is fantastic news, considering that ordinary money transfer system charge quite exorbitant rates.
A press release said that through a partnership with blockchain company Ripple, SendFriend will leverage xRapid to create a seamless money transfer experience. XRP will be used as a liquidity vehicle for cross-border payments, enabling SendFriend to circumvent the corresponding banking system and convert USD to XRP to PHP in a matter of seconds.
Speaking on the development, Yuan Ruan, Founder of 8 Decimal Capital said, “SendFriend has built strong partnerships along its supply chain, while developing a foundation to significantly minimize friction in the system. This is a highly competitive space with longtime incumbents, but we are confident in the success of SendFriend. SendFriend has a good combination of an experienced team, large $650 billion remittance market, investors that provide more than just capital, and a growth strategy focused on more than revenue from transactions including APIs and white-label solutions.”
Expressing his gratitude, David Lighton, SendFriend co-founder and Chief Executive Office (CEO) said, “We are humbled by the support of our investors, who share in our vision to reduce the costs and improve the experience for the millions of Overseas Filipino Workers (OFWs) who send money home to support their families. This investment will allow us to build out our team, focus on community engagement, and marketing efforts.”
Earlier Crypto-News India, reported that XRapid was all set to partner with three cryptocurrency exchanges namely, Bittrex, Bitso and Coins.ph, will be used to carry out transactions in the United States of America, Mexico and Philippines.
At the time a spokesperson had told us, “With xRapid, businesses can source liquidity on demand with XRP. On-demand liquidity means quicker payments, no more tied-up capital ($5+ trillion trapped around the world right now), and no more reliance on the largest banks to do foreign exchanges (FX). For example, if a financial institution in Japan wanted to send money on behalf of a customer from Japan to Thailand, it would take several days and you’d be stuck paying a bunch of money to a correspondent bank who has a relationship with the bank you want to send the money to in Thailand. Alternatively, the financial institution could form a bilateral relationship with the bank in Thailand and be required to store a bunch of money at that bank. With xRapid, it no longer has to do either.”
Liked what you read? Join us on Telegram