Do you buy a lot of stuff online? I sure do, and I also have contractors in other countries for my business, which means I’m constantly transferring money between foreign banks or using services like Paypal. This means additional fees that eat into my hard-earned cash.
The team at Xfermoney are aiming to change that, by making money transfers between individuals, businesses, or your own foreign accounts without having to pay the middleman. Their peer-to-peer remittance platform over blockchain is set to transform the way retail works, and give smaller players a way to compete against bigger chains.
Today we talk to the Xfermoney team to find out more:
Tell us about Xfermoney - what do you guys do?
Xfermoney is founded in May 2017 by a small group of like-minded individuals who have been fans of blockchain for years and carry vast experience in the Forex and payments industry.
XferMoney is a secure, transparent peer-to-peer (P2P) foreign currency exchange platform built on blockchain to enable instant, reliable international money transfers.
The platform is designed to disrupt and replace traditional money transfers by connecting participants directly to exchange money and cut out the middlemen (banks or brokers plus costs associated with them). Our main goal is to empower retail customers to exchange money globally with any person, business, or their own accounts in another country at a negligible cost. This should benefit all the consumers who have been paying heavy fees to the existing banks, institutions or brokers to transfer funds across borders.
Why money transfer? Where did the inspiration for Xfermoney come from?
The foreign exchange market is the biggest in the world of finance. Worldwide, approx. 230 million people (mostly salaried class expat, international students and small/medium enterprises) send around $500 billion in remittances each year.
So far, the main participants in this market are the larger international banks and financial institutions. These intermediator banks or brokers charge a substantial margin plus a transaction fee.
We are going to change this and bring down the remittance charges to minimal or near zero. We are here to empower the small players in retail and other industries with easy remittance available at negligible cost. The technology makes this viable with minimal operation cost.
We are here to democratize this space, so every individual, no matter how big or small, has the negotiating power and get the best in safe, secured, transparent and legally compliant service.
Apart from as an investment, who would receive the most value by investing in your ICO?
Xfermoney as an organization is built on an ideology of empowering the community we operate in, while at the same time safeguarding the interest of our investors. We at Xfermoney are empowering retail customers to exchange money globally with any person, business, or their own accounts in another country at a negligible cost in a safe, secure and transparent way.
Our XFM token works as a means to reward or get rewarded for participation in the platform and each fund transfer activity has an associated cost specified in XFM. As fund transfer transactions are carried out on the platform, we charge a nominal fee in XFM tokens only from the participants involved in the transaction. As transactions grow, the demand for XFM tokens grow as well and it will benefit every XFM token holder. XFM token holders will also receive the direct benefit in terms of profit sharing with the growth of Xfermoney as an organisation.
How does Xfermoney differentiate itself from other money transfer companies (for example Western Union)?
Xfermoney will be a blockchain-based peer-to-peer remittance platform where anybody can transfer money at negligible cost. We don’t see any competitor in this space and we see a huge opportunity in front of us.
Since it is peer-to-peer matching, actual money will never leave the border. Xfermoney will not have its own spread or margin, but a very nominal and fixed transaction charge that will be much lower than the existing players in the market (like established banks or financial institutions).
Our experience is that any expat or small/medium enterprise who wants to transfer money overseas inquires after rates from various sources. Our system would be on blockchain, giving us an infrastructure advantage and resulting in reduced operational costs.
How have you grown Xfermoney's presence in the market?
The Forex market is a rate sensitive business. Xfermoney is not keeping its own spread or margin, but keeping real bids without any hidden charges. It’s a peer-to-peer transfer so, it would be instant, and would work from anywhere. Keeping accessibility in mind, we provide a straightforward, no-frills service that harnesses the internet and internet-enabled mobile devices to facilitate the transfer of funds from potentially any location that has internet access.
It would be built around interactive, mobile-friendly interfaces that emphasise the customer experience with features like and order matching alert or setting up your own alert range, etc. The best exchange rate and a very user friendly and customised interface distinguish us from the established players in the market and will help us to bring traffic to our platform.
How is your team structured? What benefits do you believe that brings?
Our founder team is very heterogeneous in terms of industry experience. We have a team with very vast experience in banking and payments, technology, sales and marketing. Each one of them brings their own experience from their respective fields, which makes it easier for us to conceptualize and execute the idea. We are very clear in our intention to onboard only those who has a vigor to do something new, the power to challenge the status quo and who have a zeal to create something for the larger community.
What are the biggest challenges in the industry you have had to overcome?
Most of our founding members have international exposure and at one point in time they have all gone through regular remittance or forex market experience. We have seen how big and existing players charge a hefty margin and fees to retail customers and the process these retail customers must deal with. The Remittance/Forex market has regulatory issues and technical challenges as well.
Keeping all these things in mind, we have come up with peer-to-peer remittance platform over blockchain. With P2P concepts over blockchain, we don’t need to establish our own financial infrastructures or devices like financial institutions and banks. Most of the time, the money never leaves its borders and all funds are transferred locally via XferMoney. Our choice of technology makes it easy for us to adapt and bring in new emerging currencies on our platform. All these things give us a unique advantage over existing players in the market.
How have you found starting a cryptocurrency and trying to take your company global?
Everywhere we go, we hear people talking about cryptocurrency and blockchain. It is a concept that’s captured the imagination of a new generation, especially with youth who want to do something different they want to start on their own. Blockchain and cryptocurrency have given an opportunity to these people to take their ideas in front of the entire world and raise funds for execution. It has brought in a asset class which has the potential to become a preferred way of doing cross-border business. It has brought about the true global collaboration where one set of people with innovative and great ideas can come along with another set of people with surplus funds to invest in these ideas. This can eventually help in bringing more and more innovation with more and more collaboration in the world. This has the potential to make this world a better place for all of us to live in.
What’s next for Xfermoney? Do you have plans to grow, expand or diversify?
We are starting with 5-6 countries and 8-10 currency pairs right now. We are planning to launch Xfermoney by the end of this year. We have already started working on the product and we are in the process of getting initial regulatory clearances. Our target would be to onboard new currency pairs on our platform, get regulatory licenses and clearance from more and more countries in coming years.
Where would you ideally like to be in 5 years?
We aim to see Xfermoney as a dominant player in the remittance market. In the coming 5 years, we aspire to make Xfermoney the remittance platform of choice for thousands of people. We are here to democratize this space, so every individual has the negotiating power and get the best in service which is safe, secured, faster, transparent and legally compliant.
If you had to give one piece of advice to an up and coming blockchain entrepreneur, what would it be?
Never before in the world have we had so much opportunity in front of us to bring in new ideas and execute. If you have an idea that can be executed and it has the potential to make a difference, then now’s the ideal time to plan, incubate, nurture and execute. Don’t let your hesitation kill your innovation – join this great community with an honest intent of the execution of ideas and keep the values of blockchain and cryptocurrency unblemished.
With few other competitors using blockchain and cryptocurrency in this space, Xfermoney are poised to make a huge impact on the market. Keep an eye on them over the coming months, and don’t let hesitation kill innovation.