Ripple, Barclays, and MasterCard Invest $1.7 Million into New Remittance Startup Using XRP

SendFriend, a new remittance startup utilizing the XRP cryptocurrency for cross-border money transfers, has received $1.7 million in a funding round led by Ripple, Barclays, and MasterCard, according to a press release published on February 11.

In addition to the 3 established companies mentioned above, MIT Media Lab, Techstars, Mahindra Finance, 2020 Ventures, and 8 Decimal Capital also participated in the funding round.

Per the press release, SendFriend’s co-founder and chief executive officer, David Lighton, said the money raised will go toward focusing on community engagement, marketing, and bringing on new staff.

What Is SendFriend and How Do They Use XRP?

SendFriend, founded at MIT, is a fintech company leveraging secure blockchain technology to facilitate international remittance payments to reduce settlement time and cost of service when compared to traditional money transfers.

The service is primarily aimed to serve overseas workers from the Philippines, which is one of the largest Asian markets for remittances, with $34 billion being sent to the country last year alone.

The firm will purportedly use XRP and Ripple’s xRapid system for cross-border remittances once their office in New Jersey, as well as their desktop and mobile apps, launch.

In the press release, SendFriend explained how their service will work:

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.

According to SendFriend, their fees for cross-border settlements will be 65% less than the industry average for these types of payments, because Ripple’s blockchain technology will do away with the fees and inefficiencies of the traditional banking system.

Final Thoughts

SendFriend appears to be launching at the most opportune time, as the Philippines’ House of Representatives reportedly approved a bill to grant international Filipino workers a 10–50% remittance fee discount that’s based on the amount being sent.

With great thanks for the funding round, Lighton said:

We are humbled by the support of our investors, who share in our vision to reduce the costs and improve the experience for the millions of Overseas Filipino Workers (OFWs) who send money home to support their families.

Which of Ripple’s 200+ partners will integrate Ripple’s blockchain technology next? Let us know what you think in the comment section below.