When on June 29, Philippines-based Bitcoin exchange Coins.ph launched its remittance service, SendMoney.ph, the large number of the Philippines expatriates felt relieved. The much needed services came to help them send money to their people in the country easily and considerably at lower charges than the other options available.
The reports claim that the service targets the $24.7 billion market for remittances in the Philippines, which trails behind only China and India in volume. Thus, it is not just the workers of the Philippines that are going to benefit from Bitcoin but some other countries with huge pool of workers living and working outside that can benefit from Bitcoin.
While the remittance industry represents additional and significant revenue opportunity for Coins.ph, its co-founder and CEO Ron Hose has several other plans. For instance, he is also considering Filipinos working overseas – a large group of people dubbed overseas foreign workers (OFWs) – that SendMoney.ph may help.
Talking to media professionals he says that his company saw overseas foreign workers paying anywhere from five percent to 25 percent to send money home with companies like Western Union and Moneygram. He informs that in such transactions their relative in the Philippines loses $10 on a $100 transaction, that’s equivalent to two to three days of work.
When he thought for other options Bitcoin came close to the solution. He says that with Bitcoin he can do it cheaper and solve a real pain as his company allows these overseas workers to send cash from anywhere in the world using Bitcoin and have their relatives in the Philippines get the money via a bank deposit for no fee.
Customer-Centric User-Friendly Solution for Workers and Their Relatives
Additionally, as his company does door-to-door delivery charging just 80 to 120 PhP fee, which is US$1.83 to $2.75, or via pick-up at one of their partner retail locations 50 PhP fee; US$1.15 in the Philippines, it still a huge saving for the workers and their relatives. The national economy that depends a lot on the remittances will also benefit from such an arrangement.
Interestingly, his company has seen tremendous scope and partially huge success when he says that the early signs are promising. According to him the company already had customers that were using its Bitcoin exchange informally to remit money by selling Bitcoin, so it knew there was demand.
To contact the reporter of this story: Deepak Tiwari at email@example.com