One of the world’s largest financial industries is known as the remittances industry. You may have seen the word before and some may not know what it means, but it is a much shorter way of saying people sending money from one country to another. People have been using sudo-banking services like Western Union for over a century, and large commercial banks like Wells Fargo will gladly send a wire for you, but are these the best options for you?
Bitcoin changes the remittances game forever
This question is incredibly important for almost a quarter of a billion people around the world because companies like Western Union are making a fortune of these users. Over $500 billion worth of funds is sent every year by people sending money home to help pay for food, clothing, rent and essentials. Companies like Western Union and Moneygram handle well over $100 Billion USD of this business each year, but Bitcoin is proving to be a much better way to do this business, going forward.
The world’s largest remittance markets are China, Indian, and the Philippines, so let’s look at one transaction. For example, if you send a mere $20 by Western Union from the U.S. to the Philippines through their Viber app, only about $15 USD will reach the intended recipient, after WU and exchange fees are deducted. Western Union gets up to a whopping 20% of the sender’s money! No wonder they have been in business for over 150 years. Plus, the receiver may have to wait up to five days to get the funds, after conversion.
There is one interesting fact: Western Union is currently valued at about $10 Billion USD, which is almost exactly what Bitcoin is valued at in market capitalization. So Bitcoin has already caught up to a legendary 150+ year business in a matter of 7+ years. Why? One reason is because Bitcoin would’ve done the same transaction for pennies, and you can receive the funds in as little as one hour, regardless of your location. Heck, if you both have a Bitcoin wallet, you’ll receive the funds in seconds, and have it confirmed within minutes.
Now, there are effective Bitcoin alternatives in these major markets, like Zebpay (see image above for a Bitcoin vs Banks cost comparison) and UnoCoin in India and Rebit in the Philippines and BitPagos in Brazil. Japan is working hard to accept one of their new national currencies through these means, as businesses figure out the new regulations.
One thing is for sure, if you are not using Bitcoin for your overseas transfers, you are losing an incredible amount of time and money, in every week, to every month of every year. Welcome to the 21st century. Bitcoin is ready to serve you better.