In contemporary world international money transfers is one of the most important services in financial market. Increasingly you can observe a situation when the customers do not open an account in the bank to make a transfer, but use some other services.Market growth for international money transfers started in 1990s. Nowadays, after 27 years, migration processes is a main driving force for dynamic market development.How one can make a transfer?There are several ways to move funds:
- Bank. The customer applies for banking services. He makes a transfer from one bank account to another bank account or a card to card transfer.
- Post office. To move funds you can use a postal order.
- Electronic systems. International payment systems like Webmoney and electronic payment processors like Visa, MasterCard and MoneySend are widely spread nowadays.
- International systems of money transfers. Many customers all over the world use the services of Western Union, Money Gram and other systems. About 50% of all the transfers in contemporary world are made in this way.
- Alternative ways. You can transfer funds using the services of mobile operators, social networks services and the services of retailers.
- Non-official ways. Not legal, but very often practiced way of money transfers. Many people hand over cash via friends, relatives, train guides, bus drivers on international routes.
Each of the above mentioned ways of money transfers carries some financial costs. Moreover, many official financial channels are not available for migrants for obvious reasons, since the migrants work illegally.Many services are just intermediaries between the banks. Most of the operational costs are included in the commission. The average commission is 2,5%. You have to add 4% for currency conversion to this value, and you’ll get 6,5% of unnecessary costs. In some services the commission including conversion fee can be over 10% (for example in Western Union). Domestic market of money transfersThe largest services in the Russian market of money transfers are “Zolotaya Korona”, “Unistream” and “Contact”. Webmoney and Yandex Dengi payment systems gained much popularity. The customers often transfer funds using the cards (Visa and MasterCard) and online bank services, like Sberbank.
Cryptocurrency solution of the problemThe system of cryptocurrency transfers is developing each new day. For example, Bitcoin reduces the costs of money transfers significantly.The innovations introduced by the developers, threaten the bank system. If the system will not implement changes and will not use modern developments, it can become useless in future. That is why some financial institutions got interested in the possibilities of blockchain to use the developments of fintech services and to integrate cryptocurrencies in modern services.
Araneobit service is an interesting solution of the problem. Araneobit is a global project which accepts orders for money transfers. Thanks to offset system, the service allows to spend less money on commission. In the first six months, during the testing period of @Araneo bot (https://t.me/AraneoBot ), all the transfers will be free of charge, and after that period the fee will be charged only for counter offer search.
The users will pay for the service with Z tokens, avoiding multiply fees. The commision will be defined in a decentralized way and distributed among all the users of the system. Moreover, the system itself will choose the parties, responsible for the payment. The speed of transfer will depend on these parties. The money transfer is performed with the special bots in Facebook and Telegram. The bot will define the most convenient location for the receiver to get the funds. The bot will process the counter offers and will connect two pairs of senders and receivers. The non-standard scheme of transfers allows to reduce the fees significantly.
Araneobit is a new word in the market of cross-border transfers. The system allows not only to reduce the fees significantly, but also to improve the quality of the service.
https://t.me/AraneoBot Active discussions of the project are held in Telegramm chat