Bithumb, South Korea's largest cryptocurrency exchange, has partnered with BitPay, a major cryptocurrency payment processor, to facilitate payments of international payments.
United States and South Korea
Sonny Singh of Bitpay, the commercial director of BitPay, said the company is on track to handle $ 4 billion transactions in 2018, and that the team is looking to make crypto – Currencies like Bitcoin more accessible casual users by helping large scale retailers to integrate cryptocurrencies as a payment method.
In an interview with CNBC, Singh announced that the company has partnered with Bithumb to target the $ 200 billion remittance industry by targeting payments between South Korea and the West.
"Cross-Border Payments in South Korea and in the West [have become] a $ 200 billion industry this year.Bithumb is obviously one of the largest stock exchanges in the world , Said Singh,
For several years, since 2014, many remittance-based businesses have been attempting to use cryptocurrencies to process large amounts of payments, given the high fees and costs paid by shippers and recipients of remittances. like Western Union and Moneygram.
A disadvantage of traditional remittance companies is that in provinces or rural areas where remittance centers are non-existent, recipients often have to travel long distances to receive remittances. their money, which is time consuming and expensive. ]
Singh said the partnership between Bithumb and BitPay would allow users to process cross-border payments with a 1 percent tax and a one-day guaranteed settlement period.
"We are trying to make it possible for people to get money cheaper and faster from international suppliers, so right now, somebody in Korea South can pay a million dollar bill in the US using Bithumb to buy bitcoin and pay the bill, and BitPay will process that bill and settle in US dollars the next business day, " Explains Singh.
Bithumb also began deploying cryptocurrency ATMs in South Korea, to allow any individual in the country to easily buy and sell cryptocurrencies, thus facilitating the process of sending out encryption payments.
While BitPay and Bithumb target the remittances market between South Korea and the United States, other companies like South Korea's largest conglomerate, Kakao, are focusing on Asian remittances market.
Last year, Kakao, which controls the country's courier, fintech, taxi and social media industries with a 90% market share in each industry, acquired a 40% stake in Satoshi Citadel Industries the largest investment and fund transfer company focused on Bitcoin in the Philippines.
Rebit.ph, a cryptocurrency-based transfer application operated by Satoshi Citadel, processed transfer payments between the Philippines and many countries in Asia.
In most developed countries such as South Korea and the United States, expatriate workers do not rely on remittance service providers, but rather work with banks to send and receive payments. However, in countries like the Philippines and Malaysia, with relatively low wages for local workers and limited access to banking services, employees use payment platforms to pay for their payments.
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