Unknown to most people, the money transfer market could be a life or death matter. Migrants from most developing countries would have to send money back to their family. The money sent could just be the thin line that stops their families way back from starvation. Traditional banks still have to cut down on the amount of money that is to be sent back home. This means that the families back home would have to get a lesser amount of the money that was sent.
In the last couple of years, the remittance industry has become a multi-billion euro one with international money transfers being a part of it. According to sources, in 2017 alone, over €50 billion remittance payment was made from the United States to China, India, and Mexico. Worldwide the remittance payment totalled over €513 billion in 2015 alone. According to the statement released by the World Bank, the remittance payment in 2018 is now over € 540 billion. This news shows that there is more money sent to developing nations than the total development aid that is sent from nation-states. Irrespective of the fact that these huge amounts are sent each year, traditional financial systems still look for ways to cripple this flow of billions of dollars. Unknown to most people, cryptocurrencies that eliminate the need for intermediaries could just be the solution.
In a recent survey that was carried out, 4 out of 5 people would prefer to make use of cryptocurrency platforms, yet only about 16% of the 700 respondents have made use of crypto platforms. 50% of the female respondents have reported slight knowledge or even no knowledge of cryptocurrencies. This survey was carried out on the Mechanical Turk of Amazon. Out of the 700 respondents, over 60% of them were males, while 40% were females. About 70% of the respondents were Caucasians.
According to the World Bank, Nigeria, India, China, Mexico, and the Philippines happens to be the top five remittance destinations. Although this survey would not include a larger number of remittance payers since it was answered from the Mechanical Turk of Amazon, it happens to be a preview into how these cryptocurrencies would facilitate international money transfers if more people had more knowledge of them and how they work.
The survey further revealed that over 50% of the respondents made use of PayPal or Western Union as an international transfer means. The cost of sending money through these gateways have affected the amount that the family back home receives. For example, Western Union charges 6% for all transfers. If you are to send €500, you will be charged €30. For every €500 you send back home, you lose €30. The survey further revealed that each remittance sender sends money back home at least five (5) times each year. Each time they send money back, an average of €600 is sent. If calculated each year, one sender could send up to €3500 back home with few hundred euros taken by these money transfer service providers.
The lack of financial inclusion is a big problem in many third world countries. According to the World Bank, the numbers are over 2 billion for the unbanked population worldwide. Less than 15% of the adult population have bank accounts, and those that do don’t have access to premium banking services. The lack of access to banking excludes them from being able to participate in the global commerce.
With services like Monetum, millions of the unbanked population can get access to financial instruments through cryptocurrency reducing remittance costs. Using solutions like Monetum would help families across the developing countries gain the critical extra money that is used for transaction fees in more traditional money trasfer services. Such crypto platforms take the financial emancipation to the unbanked fingertips resulting in a greater financial inclusion. Platforms like Monetum also add the incentive of empowering small businesses, helping merchants reach in global scale in terms of import and exports.
In places like Africa and other developing countries lack the access to international payment systems which creates a challenge for many merchants living in those developing countries as they have no access to foreign exchange as well as the option to pay and receive foreign currency.
With the help of Monetums smart exchange merchants will be able to pay and receive foreign currency in a matter of seconds helping them grow. Monetums hybrid wallet, which has created a gateway between traditional currency and cryptocurrency allows users to receive card payments. With its low consensus algorithm and low transaction fees, the Monetum platform is set to help senders with multiple asset exchanges as well as international or cross-border transactions.
Monetum brings together legacy payment systems and crypto in an all-in-one solution. It is a first mover to present a blockchain based fiat + crypto + metals wallet in combination with a regulated smart exchange running on the blockchain. Monetum simplifies the use of crypocurrencies for everyday payments, as simple as cash but better. Interlinking all funds in a single wallet it offers the solution to pay and receive in crypto or transfer crypto or traditional currencies with low fees. Monetum is a Swiss company’s project that ensures high quality and reliability. The project leverages the teams solid experience in the payments processing industry, with a proven track-record and a working business model.