There are about 250 million immigrants in the world sending over $600bn to support their friends and families back home every year. The remittance market is a significant source of funding for many individuals and families across the world. Recipients of remittances, particularly in emerging markets, rely on this income for basic needs like food, clothing, medicine, utility bill payments, among other needs.
Firstly, the cost of remittances is punitively high. Transferring money via banks and traditional international money transfers operators could cost from 7-12% of the value transferred. Over the past decade, new digital remittance companies have succeeded in reducing this cost, but the cheapest service could cost up to 4%. Their access-points or withdrawal channels can also be difficult to interact with, especially by the unbanked population.
Secondly, over 40% of remittances are intended for specific uses like food, clothing, medicine, school fees or utility bill payments.Senders want to ensure that their money is being utilized for its intended purpose, but this is not possible to control or monitor with cash transfers, as cash creates opportunities for waste and diversion of funds. SureRemit removes the cash layer by eliminating cash agents leveraging cryptocurrency.
The platform connects senders directly to the merchants that serve their recipients’ basic needs back home. A new token, Remit,will enable senders to purchase digital vouchers (SureGifts) that can be delivered to billions of their recipients across the world instantly via SMS or e-mail. These vouchers can be spent directly for goods and services from SureRemit’s ecosystem of partner merchants within their community. The service will significantly reduce the cost of transfers, while ensuring that the recipient receives the appropriate value as intended by the sender.
The SureRemit Token
The SureRemit token (RMT) is an utility token built on the Stellar Network, designed to be used by immigrants and customers within the SureRemit platform. Following this standard, SureRemit tokens are easily transferable between users and can be supported by wallets and exchanges that already support Stellar lumens.
Within the SureRemit ecosystem, the Remit token (RMT) will be used internally to access vouchers and pay bills for targeted remittances. Immigrants and customers in general will be able to select the country they want to send value,search for the right merchant in a category and create an order for a voucher to be delivered to the recipient via SMS or Email, and pay in RMT token. Once the order is received, the token will be frozen until the voucher is sent from the SureRemit system. When that happens, the token is transferred to SureRemit. In the future, we hope to activate the direct acceptance of RMT tokens by the ecosystem partners, which they can in turn convert to Fiat, this will make token transfer happen directly to merchant’s balance.
Most global payment gateways refuse to process payments for remittance companies or impose unreasonable costs and restrictions due to regulatory requirements to prevent money laundering and the funding of other criminal activities., The blanket refusal to entertain remittance technology innovators affects companies such as SureRemit, even though the service is focused on non-cash remittances. Blockchain and the use of cryptocurrencies allow anyone to take advantage of our platform and get the help needed to friends and family anywhere they are in the world.
Reducing Frictional Costs
Traditional methods of transferring capital incur relatively high transactional costs (often up to 12% along with flat fees regardless of transaction size) due to banks and other financial intermediaries having to address counter-party risk and settlement or clearing costs. Using RMT significantly reduces these costs, especially if users engage in a large amounts of relatively small payments.
Creating a System of Record
The blockchain ledger is a publicly-verifiable record that can be used to confirm that vouchers purchased or bills paid on our system have been delivered and redeemed for their purpose. Immigrants using our platform will have confidence that vouchers have been redeemed for what they were purchased for, with a dependable system-of-record always available as an accounting of their usage
Author : Namirah
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