just now
SoFi Technologies (NASDAQ: SOFI), a U.S.-based digital financial services provider with over 11.7 million members, has announced plans to introduce an international money transfer service, allowing members to send funds abroad directly from the SoFi app at lower cost and with faster delivery compared with traditional remittance providers.
The service will be powered by Lightspark, an enterprise infrastructure provider that uses the Bitcoin Lightning Network. Lightspark’s Universal Money Address (UMA) will enable users to send and receive funds over an open global network. SoFi will become one of the first U.S. banks to offer a blockchain-based remittance product.
Anthony Noto, CEO, SoFi
"For many SoFi members who regularly send money to loved ones internationally, the ability to quickly transfer money at low cost isn’t just a convenience, it’s a meaningful improvement to their everyday financial lives. By embedding this directly into SoFi’s app, we’re unlocking the value of blockchain technology, to give members faster, smarter, and more inclusive access to their money."
— Anthony Noto, Chief Executive Officer, SoFi
"SoFi is one of the most innovative and forward-thinking financial platforms in the US today. Digital banks are embracing UMA because it’s fast, cheap, and secure, and it uses the only open payments network that exists, Bitcoin. UMA on SoFi means customers can move dollars instantly, any time, globally, and we’re excited to see the demand via SoFi’s waitlist, proving that people are ready for the future of payments."
— David Marcus, Chief Executive Officer & Co-Founder, Lightspark
SoFi said the new transfer service will be launched later this year, starting in Mexico before expanding to additional countries. It will be available 24 hours a day via the SoFi app, without the need for third-party applications. Exchange rates and fees will be displayed in advance of each transaction. The company added that it expects to be among the lowest cost platforms for cross-border transfers, with total charges below the current national average.
The service works by converting U.S. dollars to Bitcoin in real time, routing the funds across borders via the Bitcoin Lightning Network, and then converting them back into local currency for deposit into the recipient’s bank account. Lightspark’s global network of partner banks and financial platforms underpins the service.
SoFi Technologies is a digital financial services provider with over 11.7 million members. Its platform spans borrowing, saving, spending, investing and insurance services, delivered through a single app. The company also operates Galileo, a technology platform used by fintechs, financial institutions and brands to support more than 160 million accounts globally.
