A new report published by Clovr, a research focused cryptocurrency company indicates that there has been an increase in the use of cryptocurrency as a preferred method of sending money from the U.S. The study was conducted on 707 people seeking the method people use to transfer funds. It also revealed the 20 countries that receive the most remittances from the U.S. in 2017 with the top five being Mexico, China, India, Philippines, and Vietnam.
Drilling down to some specifics of the report reveal that almost half of all those surveyed use PayPal and other money transfer services such as Western Union. Although not as high, the percentage of those who use cryptocurrency to transfer funds is significant enough at 15.8%.
The report also emphasised the fact that more people are getting dissatisfied in using traditional outlets for transferring money due to increasing surcharges which diminishes the money that their intended recipients received.
This is when non-conventional methods of transferring funds such as cryptocurrency come in.The introduction of blockchain-based currencies provide a more affordable and yet faster method to transfer funds.
The survey also revealed that 85% of those who used cryptocurrency to transfer funds are satisfied with the service. An indicator which led the report to conclude that the money transfer industry is ripe for disruption. And Blockchain-based currency is going to be a formidable disruptor.
Where this industry is ripe for disruption is in the introduction of blockchain-based currencies, or cryptocurrencies, which could offer a cheaper and faster way to transfer funds. If some of the largest companies in the world, like Microsoft and Starbucks, are comfortable accepting cryptocurrencies as a form of payment, this should instils confidence in using these new forms of payment for sending remittances.