While Ripple and its token XRP are changing the way cross border remittance industry works, it is also backing young start-up which shares the same vision of disrupting the payments industry. According to the latest announcement, Ripple has joined hands with Barclays and Mastercard to infuse $1.7 million funding for remittance start-up SendFriend.
SendFriend envisions to open services in New Jersey
SendFriend is a start-up founded at MIT by a group of individuals with a background of working at The World Bank and MoneyGram. The remittance start-up plans to start operations in New Jersey and envisions to open its first remittance corridor between the United States and The Philippines.
The company, which came out of Barclays‘ accelerator programme, has got into an agreement with Ripple to use XRP tokens as a liquidity vehicle for cross-border payments, allowing SendFriend to bypass the corresponding banking system and convert USD to XRP to PHP in a matter of seconds.
The other investors that have joined Ripple in this round of funding include MIT Media Labs, TechStars, Mahindra Finance, 2020 Ventures, and 8 Decimal Capital.
While the services are yet to go live, SendFriend mentions that it plans to cover the whole of the United States in short term and it plans to offer its services via desktop and mobile apps.
In its funding announcement, SendFriend claimed that it will offer 65 percent lower fees compared to the industry average for international money transfers, as blockchain “replaces the frictions and fees of the banking system.”
The start-up is in the process of hiring its team, community engagement, and marketing.
Speaking to media SendFriend’s co-founder and chief executive officer David Lighton said
“XRP is used as a liquidity vehicle for cross-border payments, enabling SendFriend to circumvent the corresponding banking system and convert USD to XRP to PHP [Philippine peso] in a matter of seconds.”
From the investors side, Yuan Ruan, founder of 8 Decimal Capital mentioned “This is a highly competitive space with longtime incumbents, but we are confident in the success of SendFriend,” “SendFriend has a good combination of an experienced team, large $650 billion remittance market, investors that provide more than just capital, and a growth strategy focused on more than revenue from transactions including APIs and white-label solutions.”
With XRP’s support, SendFriend would try capturing the Filipino population that is currently staying and working in the United States. If its able to achieve its vision, SendFriend could gain a lot of market share in the remittance industry
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Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.