Fintech

Digital Remittances Reach Record High of $96 Billion, Fees Charged by Traditional Providers Open Door for Cryptocurrencies

14/02/2020 by Idelto Editor

In a globalized world where labor follows capital, the remittance industry has been growing constantly in both volume and users. Traditional providers like banks and money transfer companies have been charging high fees for their services which creates opportunities for alternative digital platforms and decentralized cryptocurrencies.

Also read: Russians Can Use Qiwi, Sberbank, Yandex Money and Now Binance P2P Exchange to Buy Bitcoin With Rubles

Digital Remittance Volume Projected to Touch $143 Billion by 2023

According to numbers gathered by market data provider Statista, the total transaction value of digital remittances, cross-border transfers made over the internet, has reached almost $95.96 billion in 2020, representing a year-over-year increase of more than 21%. At the same time, the number of users in this segment of the remittance market has been estimated at 8.5 million (+20.5% yoy). Both indicators are projected to increase by 2023, to over $143 billion in volume and 13.2 million users.

Last year, the largest share of users (32%) were between 25 and 34 years old, and another 25% were aged 35-44 years, a majority from labor-active age groups. The average annual transaction value per user in the digital remittances segment amounts to a little over $11,233 according to the data released this year. Five countries, United States, Switzerland, Saudi Arabia, Germany, and China, top the transaction value comparison chart. With a total transaction value of $21.297 billion, the U.S. is the pronounced global leader and Switzerland comes in second with $7.969 billion.

Total transaction value in the digital remittances segment, Source: Statista — Global comparison, transaction value. Source: Statista

The authors of the report note that remittances often occur on a regular basis and most of the user groups are not inclined to change their fund transfer provider very often. The sector is dominated by established service providers such as banks, post offices and money transfer processors like Western Union and Moneygram. The relatively high fees they charge has opened the way for alternative platforms such as Transferwise, Worldremit and Remitly, Statista points out, which have managed to cut costs by optimizing the use of digital infrastructures.

Ripple’s Latest Remittance Service Agreements Turn the Tide for XRP

While there have been various developments around XRP recently, some of them have influenced its market in a positive way. Two partnerships have been announced this month in which Ripple, the company associated with the cryptocurrency, will be providing remittance services. The price of XRP, the third largest cryptocurrency by market capitalization, spiked over the past couple of days, from a low of $0.2678 on Feb. 11 to a high of $0.3288 early on Feb. 13. Although the crypto lost some of the gains later on Thursday, the price jump is remarkable as it comes after a difficult year for one of the top coins.

According to media reports this week, the National Bank of Egypt (NBE), the country’s largest financial institution by assets and branches, has signed a cooperation agreement with Ripple to open a new channel for receiving remittances from Egyptians that live and work abroad. The bank said it wanted to employ Ripple’s blockchain solutions to further develop its remittance business supporting transfers from around the world and particularly the Gulf region.

The Egyptian deal follows another similar agreement announced by Ripple earlier in February. The company revealed it’s going to work with International Money Express (Intermex), a leading remittance services provider focusing on Latin America and the Caribbean corridor, to address the challenges with slow and expensive cross-border payments. Intermex plans to leverage Ripplenet for faster remittances between the United States and Mexico. Ripple claims the network links over 300 banks and financial institutions globally.

According to the World Bank, Mexico ranks third among countries with the highest number of remittance recipients. Data published by Banco de México, the nation’s central bank, shows that Mexican emigrants have sent home a record $36 billion in 2019, a 7% increase over the previous year’s almost $33.7 billion. Most of the money, a large portion of which comes from the U.S., has been transferred electronically and in small transactions averaging around $300. Intermex is one of the largest money remitters between the two countries processing more than $30 million in transactions annually.

The status quo in the digital segment of the remittance market undoubtedly creates opportunities for decentralized cryptocurrencies as well. Transaction fees in the case of bitcoin cash (BCH), for example, are less than a cent per transfer. Certain regions can benefit significantly – a 2019 report by the World Bank revealed that the average cost to send the equivalent of $200 to Sub-Saharan Africa is 9.3% of the transferred value, as news.Bitcoin.com reported last year. In 2018, African expatriates sent $46 billion to their home countries.

What are your expectations about the future of the remittance industry? Share your thoughts in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Images courtesy of Shutterstock, Statista.

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The post Digital Remittances Reach Record High of $96 Billion, Fees Charged by Traditional Providers Open Door for Cryptocurrencies appeared first on Bitcoin News.

Companies Keep Flocking to Swiss Crypto Valley, Over 1,000 Jobs Added in a Year

25/01/2020 by Idelto Editor

Companies Continue to Flock to Swiss Crypto Valley, Over 1,000 Jobs Added in a Year

Crypto Valley, a fintech-friendly region centered on the canton of Zug, has been expanding to other parts of Switzerland and neighboring Liechtenstein. Despite all the challenges facing the blockchain industry, favorable regulations and improving access to banking and legal services are attracting more and more crypto companies. Their number has increased for a third consecutive year and many new jobs have been created.

Also read: Leading Swiss Stock Exchange Offers 12 Crypto Exchange-Traded Products With One That Shorts Bitcoin

More Than 800 Crypto Firms Based in Switzerland and Liechtenstein

Almost 100 new businesses established a presence in the Swiss Crypto Valley last year, shows a new study. Its findings were released during the CV Summit in Davos on Thursday, a blockchain-focused event that takes place during the World Economic Forum’s annual meeting. The total number of companies working with digital assets and blockchain technologies in the Crypto Valley has reached 842, the survey reveals, compared to 750 in its last year’s edition. Jobs in the sector have also increased substantially – from 3,300 in 2018 to 4,400 by the end of 2019, the Swissinfo news portal reported.

The news comes despite a slowing growth rate across the industry, a trend that started after the boom of 2017 and continued into the first half of 2018. The number of “startup casualties,” the outlet notes, is also mounting. Failed projects include crypto company Alethena, tokenization platform Tend, real estate startup Swiss Real Coin, alternative banking project Oyoba, and digital payment provider Monetas. Some of these companies simply failed to persuade investors as to the viability of their business plans.

At the same time, funding for the top 50 entities in the report reached $4 billion and these are valued at a total of $25.3 billion. Among the newly established or relocating members of the industry added to the 2019 list are Facebook’s Libra, blockchain developer Casper Labs which moved to Switzerland, crypto exchange Bittrex Global which set up an office in Liechtenstein, Six Group’s digital exchange initiative SDX, licensed crypto banks SEBA and Sygnum. The last two companies, along with Bitcoin Suisse which also expects approval to become a bank, are leading employers as well.

Established Startups Attract More Venture Capital Funding

The Crypto Valley is home to five unicorns, or projects valued at more than $1 billion. These are Ethereum ($14.4B), Dfinity ($2B), Polkadot ($1.2B), Bitmain ($1B), and Libra ($1B). Another list names unicorn contenders like Tezos ($924M), Cardano ($869M), and Cosmos ($818M). The authors of the analysis, Swiss business incubator Crypto Valley Venture Capital (CVVC), PwC subsidiary Strategy& and other organizations, point out that “the report highlights the diverse ecosystem in blockchain and cryptocurrency consisting of startups, corporates, and government” as well as its “maturity and substance.” Mature startups that are at later, more advanced stages of their lifespan typically attract more venture capital funding, which has generally increased in the past few years.

A positive development in that respect is the gradual opening of the banking sector that comes with increasing regulatory certainty. While large banks and central banks recognize the potential of crypto-related technologies, they often create difficulties for crypto businesses. Smaller financial institutions, however, are more likely to engage with the industry. Swiss banks involved in the crypto space include Hypothekarbank Lenzburg, Maerki Baumann, and Arab Bank (Switzerland). “With regulatory certainty in Crypto Valley, private banks have been leading the adoption and provision of services,” the researchers note. Access to legal services has also improved markedly with an ever expanding number of law firms offering advice to crypto companies in both Switzerland and Liechtenstein. More than two dozen of them have been listed in the report.

During the summit, CVVC CEO Mathias Ruch noted the increased interest from large Chinese banks, government agencies and investors in Swiss blockchain know-how. Last year, Switzerland introduced broad changes to its existing laws in order to incorporate rules for the crypto space while Liechtenstein adopted a new Blockchain Act meant to attract crypto businesses by providing more regulatory clarity. This progress has led to the formation of multiple crypto hotspots – not only Zug, which is home to over half of all companies based in the Crypto Valley (425), but also Zurich, Geneva, Ticino, Vaud, Lucerne, and Bern. Liechtenstein has 80 registered blockchain businesses in its jurisdiction.

What are your thoughts on the expansion of Switzerland’s Crypto Valley? Tell us in the comments section below.

Images courtesy of Shutterstock.

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Millennial and Male: 3 Crypto Card Issuers Profile Their Average User

24/01/2020 by Idelto Editor

Platforms offering debit cards that can be topped up with cryptocurrency have enjoyed growing popularity in the crypto community. They provide a payment solution for those who earn and own digital coins, enabling in-store and online crypto payments. Their expanding user base provides a snapshot of the kind of people who spend crypto on a daily basis and what they like to buy.

Also read: Crypto Debit Card Targets Generation Z With a Promise of Financial Freedom

Highly Educated, Overachieving Foodies

Three European companies with crypto card products shared what they know about their users with news.Bitcoin.com. Madrid-based fintech startup 2gether provides banking services to residents of the Eurozone through its mobile app. The company issues a debit Visa linked to its wallet which supports about a dozen cryptocurrencies. Major ones such as BTC, BCH, ETH, and XRP account for over 90% of the platform’s crypto payments. Its customers can spend them like they would traditional currencies and also withdraw cash at ATMs through conversion to fiat. 2gether recently released statistical data profiling its crypto card users and their spending habits.

The debit card allows holders to pay with cryptos and euros, which 37% and 63% do respectively. The everyday crypto user is a highly educated millennial male, shows the analysis of the spending behavior of more than 10,000 customers. The majority of cryptocurrency spenders, 56%, are between 26 and 45 years old and 77% of them are male. The most common professions among them are lawyers, accountants, and economists (15.64%), followed by students (11.20%), operators and transporters (9.82%), and senior executives and businessmen (8.82%), the company detailed this week.

The study covers a period from April to December 2019 and 19 Eurozone countries where the crypto card is available. It’s mostly used at restaurants and hotels (32.71%), supermarkets and grocery stores (19.13%), and to pay communication bills (11.91%) and transport expenses (11.85%). On average, users spend €112.56 worth of cryptocurrency monthly and €132.65 in fiat. “In comparison with European consumption habits based on euros, the consumption at restaurants and on food receives fourth place in the ranking, with house supplies being the first expense,” 2gether noted, quoting information from Eurostat. CEO Ramon Ferraz further commented:

It is extremely beneficial for us at 2gether to know exactly who our customer is and how they change every year. Our goal is to enable the mass adoption of cryptocurrency and enable users to spend crypto in their everyday life. This data we’ve compiled takes us one step closer to making our goal a reality in 2020.

Bitsa is another European platform striving to provide an alternative to traditional banking. It offers prepaid Visa cards linked to a mobile wallet that can be topped up with cryptocurrencies like bitcoin cash among other payment options. BCH, BTC, LTC, DASH, XLM, XRP, and ZEC can be deposited and converted to euros to spend the balance in stores and online. The Bitsa cards come in virtual and plastic forms and there’s also a product targeting Europe’s Generation Z, Bitsa Young, which allows parents to order a card for their children and provide them with some financial freedom thanks to crypto.

Although it issues its cards through the same partner, the Spanish regulated electronic money institution Pecunpay, Bitsa takes a different approach. The Monaco-based company tracks less card usage data and isn’t very keen on revealing what it knows for a good reason. “We don’t have it because it’s private and we take the privacy of our users very seriously,” CMO Roberta Quintiliano explained. Nevertheless, she was kind enough to pull the curtain a little bit for news.Bitcoin.com and share that the majority of Bitsa users, 74.5%, are aged between 25 and 44 years old and 75.8% are male. The majority of Bitsa card holders are people interested in technologies and mobile applications, she added.

Groceries, Fast Food, Coffee and Travel

A report on crypto card usage in Europe wouldn’t be complete without taking a look at the numbers gathered by a major player. U.K.-based Wirex has over 3 million registered users across 130 countries and has processed more than $3 billion in transactions to date. The platform allows users to spend leading cryptocurrencies such as BTC, LTC, ETH, and XRP among 10 digital coins.

Around 60% of Wirex Visa card users are millennials, aged between 18 and 37, and approximately 39% are members of Generation X, between the ages of 38 and 53 years old, revealed Amelie Arras who is responsible for PR and media communications. An analysis conducted by Wirex in 2018 showed that people choose its platform for the convenience and versatility it offers and because it allows them to pay with either regular fiat currencies or cryptocurrencies.

The service lets crypto enthusiasts exchange their digital currency in-app and spend it anywhere Visa is accepted. Arras also emphasized that “This is reflected in how people use Wirex. It’s particularly suited to those who frequently travel and who therefore want a single place to manage multiple currencies and get the best market rates when exchanging them.” Grocery stores, fast food outlets, coffee shops and travel are at the top of the spending charts for Wirex cards, with a split of roughly 25% online and 75% in-store. Around 80% of account deposits are made in cryptocurrency.

The latest 2019 data available shows that 25% of all currency transactions, fiat and crypto, were recorded in the United Kingdom, followed by Italy with 13%, Spain and Germany with close to 10%, then France with 7%. Around 21% of all crypto to fiat exchanges were made in the U.K., followed by Italy with 14%, Spain and Germany with 10%, and France with 8%. At Wirex, BTC is the most traded coin, representing close to 70% of all crypto conversions, and almost 50% of all currencies, followed by the euro with 20% of all exchanges, then the British pound and ethereum – below 10%. The top five currencies frequently spent by Wirex users, historically and in 2019, are BTC, EUR, GBP, ETH and USD.

What are your thoughts on the data provided by these crypto card issuers? Do you use a debit card that can be topped up with cryptocurrency? Tell us in the comments section below.

Images courtesy of Shutterstock, 2gether.

The post Millennial and Male: 3 Crypto Card Issuers Profile Their Average User appeared first on Bitcoin News.

Wifi Sharing Platform Wicrypt Gets Government Grant in Nigeria

01/01/2020 by Idelto Editor

A crypto startup providing wifi hotspot sharing services in Nigeria has won funding from the country’s telecom regulator. Wicrypt placed second among 25 tech companies participating in an innovation competition organized by the Nigeria Communication Commission and it’s going to receive a grant worth 2 million naira to finance its project.

Also read: Skrill Now Lets You Swap BTC for BCH

Wicrypt Users Can Earn and Spend Crypto

Wicrypt allows subscribers to earn money by sharing their mobile data with other users who pay for the service. The platform’s app has been developed for Android and iOS devices and is already available on Google Play and Apple’s App Store. Hosts can connect their wireless routers to Wicrypt as well and set a price for the wifi hotspot. Clients pay to gain access but are also free to reward the hosts for the network quality and speed.

To connect to Wicrypt hotspots, wifi users need to have a sufficient amount of Wicrypt credits (WCs), the platform’s website explains. The application verifies if a beneficiary has enough credits in their wallet to pay for the service. WCs can be acquired and redeemed with a wide choice of payment methods available to both sides. Ugochukwu Aronu, founder of the company based in the Nigerian state of Enugu, commented:

Wicrypt will help Nigerians earn money online using and sharing their mobile data.

The payment options include regular bank accounts and cards as well as crypto payments with bitcoin core (BTC), ethereum (ETH) and Binance coin (BNB). Deposits and withdrawals can also be made through the Kenyan mobile phone-based money transfer system Mpesa. Text-based payments offered by telecom companies are quite popular in African countries. These provide an opportunity for crypto payments to expand in developing nations, as is the case with Cointext, which provides users with a bitcoin cash wallet and an SMS channel to send and receive BCH.

Wicrypt has been chosen to receive 2 million naira in funding, which is more than $5,500, as a grant from Nigeria’s telecom regulator. Dozens of technological innovators took part in the three-day Innovation Competition and Exhibition conducted by the Nigeria Communication Commission. The NCC recently released the final list of 25 contenders and Wicrypt is second in the rating, the Nigerian Investment Promotion Commission (NIPC) announced. The companies that received government grants can invest the prize money into their business development.

Other Funding Programs Launched

The NIPC also notes that the Lagos State Government recently launched a 250 million Nigerian naira seed funding for startups focusing on innovations, including in the blockchain and other fintech fields. The initiative was announced by Governor Babajide Sanwo-Olu during the Art of Technology Lagos 1.0 conference held in early December with over 1,500 young innovators and tech solutions developers. Funds were also distributed among blockchain startups during another event, the Zenithtech Fair 2019 in November.

These funding projects may indicate a change in the attitude of Nigerian authorities toward the nascent crypto industry, at least on a regional level. The federal government has generally had a negative stance regarding the blockchain space so far, with the Central Bank of Nigeria issuing warnings against investment in cryptocurrencies which it does consider legal tender in the country. Nigerians, however, have been growing fonder of digital coins.

According to a study conducted by Binance Research, the trends in Google searches for “bitcoin” have noticeably shifted in the past few years, from the developed West to the East, including regions in Eastern Europe and Asia, but most recently on the African continent. A video with the results released this past fall shows that Nigeria has been topping the chart for a whole year until September 2019.

Do you think the Nigerian government is changing its policy toward the crypto space? Share your thoughts on the topic in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any third party products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Images courtesy of Shutterstock.

Are you a Bitcoin developer? You can create your own Bitcoin Cash app with the Bitbox and Badger Wallet SDKs, get started with BCH tokens through the SLP SDK, and build your knowledge base with our Bitcoin Cash developer guides.

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German Fintechs Rush to Offer Crypto Custody Services Under New Law

12/12/2019 by Idelto Editor

Fintech companies in the Federal Republic are quickly moving to develop and offer custodial solutions for digital assets under the new German legislation that will allow banks to store, transfer and trade cryptocurrencies next year. Berlin-based Solarisbank has established a subsidiary that will focus exclusively on the niche. The new entity and another German startup, Finoa from Potsdam, are planning to apply for new crypto custody licenses.

Also read: Skrill Now Lets You Swap BTC for BCH

Solaris Digital Assets to Apply for Bafin License

As an important partner of crypto companies in Germany and Europe, Solarisbank aims to be among the first financial institutions in the Federal Republic to start keeping cryptocurrencies. The tech company maintains a digital banking platform to which other businesses can connect and use its API to build and offer their own financial products and services. It obtained a German banking license in 2016 which allows it to operate also in other jurisdictions in the European Economic Area (EEA).

Solarisbank has been involved with important projects in the European crypto space such as the development of the crypto trading app Bison and the launch of the digital asset trading platform BSDEX by the Boerse Stuttgart stock exchange. Its partnership with cryptocurrency banking provider Bitwala allows customers in 31 EEA countries to have a German bank account with an integrated bitcoin wallet. The new subsidiary which was presented Wednesday will allow it to take full advantage of the new German anti-money laundering law permitting banks to hold cryptocurrencies.

Solaris Digital Assets will offer crypto custody services in compliance with the regulatory requirements of Germany’s Federal Financial Supervisory Authority (Bafin), the leading German business daily Handelsblatt reported. To be able to do so, the entity is going to apply with Bafin for one of the newly introduced licenses for custodial activities in 2020. Cryptocurrency storage solutions will be the new company’s main product at the initial stage but the subsidiary plans to expand its offerings in the future. Michael Offermann, Managing Director of Solarisbank’s Blockchain Factory, told the newspaper:

We have been working intensively on crypto custody for a year and a half. With the new regulation, a good time has come to start. After all, we are not a research institute but a commercial bank.

Bringing Fundamental Change to the Financial Market

According to the publication, Solarisbank will remain true to its well established approach to provide white label solutions. The company will offer the new service only to other financial institutions and business clients while private customers will not be able to open a direct account with the Solaris Digital Assets subsidiary. “So far, we have done well with our focus on business customer offerings. Our partners keep in contact with end customers and that should remain so,” Offermann stressed.

The Solarisbank executive believes that digital assets will fundamentally change the financial market. “As soon as the purchase and safekeeping of bitcoin and company becomes easier, we expect strong growth,” he added. Michael Offermann described the decision to create a separate entity instead of offering crypto custody directly through Solarisbank as a good move in case the regulatory environment in Germany changes again.

Since its establishment about three years ago, the fintech company has more than tripled its revenues to €7.4 million in 2018. At the end of last year, Solarisbank’s balance sheet totaled €120 million, Handelsblatt remarks. Its success is part of the rapid development of the crypto banking sector in the past few months and years that led to the introduction of a variety of new services in the space. Platforms like Cred, for example, offer bitcoin enthusiasts an opportunity to earn up to 10% on their BTC and BCH holdings through custodial services.

Another German startup that’s been working on a new crypto storage product is the Potsdam-based Finoa, which already operates as a crypto depository and claims to be serving over 50 professional investors. The company hopes to receive a provisional license from Bafin around the end of the year and, like Solarisbank, is going to apply for a full crypto custody license in 2020.

Do you think we are going to see more crypto custody services in Europe following the adoption of the new German legislation? Share your expectations in the comments section below.

Images courtesy of Shutterstock.

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