This year, global remittance payments surpassed $613 billion, increasing by 7 percent from 2017, according to statistics from the World Bank.
It’s a vital industry to many Asian, African and South American countries, with money sent to relatives and friends making up significant portions of their respective GDPs.
And as it stands, the sector is largely dominated by just three providers: Western Union, MoneyGram, and Ria.
Western Union charges $5 for a money transfer of up to $50, but a transfer of $900 could cost $76.These fees slide in price as the amount of money to be transferred within the same country. However international transfers are more costly and complicated. However, charges for this same transaction to Ireland range from $5.00 to $42.00 and to China, charges range from $10.00 to $75.00.
MoneyGram is Western Union's biggest rival. MoneyGram recently changed their fees to a flat rate of $11.50 for transferring between $50 and $900 within the United States, and 2% for amounts over $900. But MoneyGram built its reputation on international money transfers. Its international transfer fees.
Ria’s fee structure is not much different, sliding fees based on how much is to be sent, the origination, destination and mode of transaction. Ria even offers an online fee checker that can give you an estimation on what the costs of transferring money might be.
In fact, over 25 percent of all remittance payments are sent using these three services, giving them an unfair control over fees and surcharges.
Not only does that pull money away from individuals that need it, the high fees actively prevent cash from being sent altogether.
But times are changing
With the advent of FinTech solutions such as TransferWise and InstaRem, money is being sent faster and with lower fees than ever before.
And though these companies have carved out their own piece of the market, there’s a new kid on the block, offering an array of innovative solutions poised to flip the industry on its head.
Where Bitcoin and Ethereum fell short, newcomer Capricoin takes the best of both worlds, discarding the dated algorithms and slow transaction times in the process.
It’s more than just a digital currency, it’s an all-in-one solution for one of the world’s most overlooked, but important industries.
Like many other cryptocurrencies, Capricoin is built on blockchain technology, allowing fast and anonymous transactions with no middle-man. But instead of using a costly and environmentally damaging proof-of-work consensus protocol, Capricoin has chosen the road less traveled.
With its own proof-of-stake blockchain, Capricoin transactions cost virtually nothing and utilize a tiny fraction of the energy its competitors do.
In addition to its innovative approach to blockchain technology, Capricoin has also created an easy-to-use API interface, allowing third parties to easily integrate the tech into their own operations.
This feature, in particular, has practically unlimited potential, allowing reliable, cheap, and easy international transactions at the drop of a hat, opening up a new world of payment possibilities., free from high fees.
Capricoin’s unique take on the growing remittance industry has positioned it well ahead of its competitors, and as a perfect solution for individuals and businesses looking to become involved in one of the fastest growing, and most important industries on the planet.