SendFriend financing round has managed to raise $1.7 million after a successful capital injection appeal. SendFriend is a payment platform that aims to ensure that the US to Philippines remittances needs are met through the deployment of a next-generation payment platform.
Interestingly, the network has struck a deal with Ripple that allows XRP to be used as a liquidity option for the cross-border payments. It would circumvent forex bottlenecks and also banking hiccups that hinder real-time transactions.
SendFriend Will Facilitate Payment Solutions
SendFriend was founded in the Massachusetts Institute of Technology (MIT) by a team of individuals with roots at MoneyGram and World Bank. Hence, the model of the payment platform is highly advanced as it incorporates the idea of money transfer in a controlled environment. Additionally, the team is capable of developing a network that has tenets that are acceptable in the mainstream financial environment. This is due to the fact that the team has the expert ability to build a compliant platform that can be incorporated into the financial industry.
SendFriend launch is set for New Jersey from where it will link the Philippines and the US. The large Filipino US community will be the beneficiaries of the project as they need the solution to send money back home to their relatives and friends.
Ripple’s XRP Token Will Offer Liquidity
Cryptocurrencies currently offer the best cross-border payment opportunities as they operate in a decentralized environment that has a global jurisdiction. Key properties such as speed, security, compatibility, and liquidity, define each of the more than 2000 Digital Tokens.
SendFriend is in agreement with RippleNet to use XRP as the Digital Token that offers liquidity to the remittance solution. Users will be required to convert their USD to XRP in order to send them to the Philippines. From there, the recipient will have to convert XRP to the Philippine local currency-Peso/Piso. The transactions will be happening in real time and therefore ideal for businesses or emergency situations.
SendFriend which is also a part of the Barclays Accelerator program is ideal for the Filipino financial situation as it circumvents banks in a country that many poor people are unbanked. This is why Barclays is part of the fundraising initiative.
It is also important to note that XRP was selected as the liquidity vehicle because of Ripple’s xRapid technology that will power the SendFriend platform. xRapid is designed for money transfer solutions and is touted as the best in the world.
Participants In The Fundraising Project Will Benefit From The Platform
Current participants in the fundraising round include Ripple, Mastercard, And Barclays as well as other companies such as 8 Decimal Capital, 2020 Ventures, Mahindra Finance, TechStars, and MIT Media Labs.
According to the founder of one of the companies- 8 Decimal Capital- these participants believe that SendFriend has a promising model that is likely to be successful in the long-term. This is because there is a large $650 billion remittance economy that needs efficient services. The large Filipino overseas workers in the US will be the first to benefit as the platform rolls out its services to many countries, both remittance sources, and destinations.