December 28, 2018. A growing number of people from the United States are now showing a bigger interest in using cryptocurrency as a means of sending money. In a report made by a research-focused crypto company Clovr, crypto is now at 4th place as a “current money-sending method”.
With online services such as PayPal dominating the “money-sending method” in the US, followed by money transfer services (Western Union, etc), then traditional wire transfer (traditional banks), cryptocurrencies are now at the fourth place. It is now higher than prepaid cards, check or money order (via mail), check or money order (online), cash (mail), traditional wire transfer using the post office, and other means.
One of the biggest reasons as to why cryptocurrency is gaining traction in the remittance industry is because of its low cost and speed. According to the report, if a person tries to send $500 USD via a bank, it will charge them $52.05, $30.75 for money transfer operators, $34.05 for post offices, and $16 for mobile operators.
The report also says that men are more open to cryptocurrency adoption than women. Out of the 707 people who are surveyed and who have used cryptocurrencies, 18.9% of which are men while 11.7% are women. This is also in agreement with a different survey that asked if they would be happy to receive part of their salary in cryptocurrency. Out of the 31% of the respondents who said yes, 75% are men and 25% are women.
The Clovr report also added that since there are a lot of migrants in the United States, remittances will still be a big deal. Most of these people want to send their hard earned dollar as close to “one-is-to-one” as possible. This is when cryptocurrencies come in and why this option is becoming a popular choice to customers.
In a previous report here on BitPinas, a Ripple-powered xRapid payments solution is ready to cut costs and speed up remittances from the US to the Philippines. SendFriend will cater to Filipinos and migrants living in the US who want to send money to the Philippines at an affordable cost.
OFWs from Australia can also enjoy cheaper remittances by using a California-based blockchain company HashCash and its product HC Remit. It will cater to the Australian remittance market to make cross-border money transfer affordable.
This article originally appeared on BitPinas: A Growing 15.8% of Remittances from the US are now via Cryptocurrency