If you are like me, passionated about money transfer, you are at the good place. Today, we will think and innovate about the theme of money transfers and how can we reduce the price of sending money abroad. We will wonder about how to cut the cost on the last mile, we will wonder about how in the future can we reduce the cost of a transfer and so on. Let’s first take a big breathe, a big inspiration and relax in our chair. I’d like to suggest a good bourbon for a good afternoon talk.
What is expensive today?
Expensive is a relative term indeed, what do I mean when I say that an international money transfer is expensive? Hum… Let’s take some examples here. Sending money from the UK to Kenya cost in average 12% if you are sending 300GBP. This is expensive. Let’s see another example, buying a house abroad in Singapore from the US would cost you up to 10 000USD in change, which is around 0.5%, this is also really expensive. If we try to make a formula out of it. I would say that expensive is everything that is more than 0.1% multiplied by the inverse of the amount you would like to send.
How tomorrow can be better
We can revolutionize these fees. One way is to compare when you send the best solution to make your money transfer, using websites such as Moneytis. Another way is to use better technology, such as blockchain technology to reduce the cost. The best is to avoid currency exchange rates and to always use the same worldwide currency. We could imagine a system where the is a common currency that everyone can use and when someone needs to pay to someone who doesn’t accept it, the money is automatically exchanged and the person receives what he wants
Though it can never be free, even if we use blockchain and a worldwide currency, a transfer will always have a small cost. That should not be a problem if it stays inside the formula we just defined.