October 9, 2013
The international remittance market is growing at a very fast pace. Remittance market has been always profitable lucrative business & surely has positive futuristic growth. The World Bank estimates show it has grown 11% from 234 Bn 2004 to 534 Bn 2012 & is expected to grow $685 Bn by 2015. These numbers represent only the official channel of remittance, combining formal & informal remittance the market is fairly bigger.
There are many challenges in this business of sending & receiving money across the border. The funds are still queued & the fees are still at higher side. Technology would be one way to revolutionize the speed & cost of remittance. It is also observed that maintaining brick and mortar cash-in / cash-out network is one of the costliest driver of higher fees.
Ripple Labs introduced ZipZap and SnapSwap, which claims to be able to send money in 5 seconds & virtually at no cost. So the question arises is how do they make money ? Ripple with its Bitcoin solution is one of few bitcoin decentralized startups who are trying to disrupt this space. What does this mean for companies like Western Union, MoneyGram, Xoom & traditional financial institutions like banks are they ready to face this wave & beat the competition ? Will these providers slash their fees ? There many questions that come to mind as remittance industry is about to seem major turnaround very soon.
What do you think will Ripple change disrupt remittance industry ? Will consumers adopt Bitcoin for sending money across the border ?
For more on press release : Click Here