For the millions of referrers in South Korea, speed and cost are important – delays in payments can affect the coverage of critical expenses such as emergencies, tuition fees and unexpected bills. For many years, however, the money transfer market in Korea was completely controlled by major financial institutions, resulting in high international transfer fees and costly delays. The rule changes introduced in 2017 have now enabled non-banking companies to offer remittance services to consumers.
Coinone Transfer took this opportunity to partner with RippleNet to develop its retail remittance product, Cross – South Korea’s first blockchain-based mobile transfer app that offers fast and cheaper payments to nearby markets such as Thailand and Sri Lanka. Since launching in 2018, Coinone Transfer has seen a 50% growth rate in payment volume compared to the previous month and has been able to reduce fees by 90% compared to the fees banks charge their customers.
Today, nearly half of Ripple’s customers on RippleNet are based in the Asia-Pacific (APAC) region, for a total of eight. New additions are Sentbe, Hanpass and WireBarley, as well as others in Korea, highlighting the significant need for improved cross-border payment services both inside and outside the country. SBI Ripple Asia, a joint venture between SBI Holdings and Ripple, is responsible for the growth of RippleNet in Japan and South Korea.
Similar to Coinone Transfer, Sentbe is a money transfer service provider that uses state-of-the-art technology to transfer money abroad more easily, quickly and conveniently. Sentbe focuses on the South and Northeast Asia Corridor, including the Philippines, Indonesia, Vietnam, Japan and China, and saves its customers up to 95% on bank transfer fees.
For Hanpass, the focus is on simplifying the steps required to get money in and out of Korea. The company enables its users to securely send cross-border money without having to personally create local bank accounts through a complex identification process. Hanpass makes this possible by offering its users a simple and secure mobile identification process.
The fintech startup WireBarley offers mobile and online-based cross-border transfer services in APAC. The company was an early pioneer in the Australian remittance corridor and has since expanded to other countries including Korea, New Zealand, Vietnam, the Philippines, Hong Kong, Japan and the United States.
“South Korea is a hotbed of fintech innovation and we are determined to grow our customer base and presence,” said Emi Yoshikawa, senior director, global operations. “Since the Korean government began licensing payment providers for wire transfers in 2017, we’ve seen Korean payment providers dramatically improve the payment experience for their customers, and we’re excited to be part of their ongoing endeavors.” Together with SBI Ripple Asia as our local strategic partner, we make it our business to enable our customers to expand their business through the use of Ripple technology.
Working with these and all of Ripple’s customers, RippleNet provides financial institutions with the technology infrastructure and network connections to provide referrers in Korea and around the world with a faster, easier and more reliable way to send money home.
If you would like to learn how RippleNet can better serve your customers, contact us. Companies based in South Korea can contact SBI Ripple Asia to learn more about how to save time, reduce costs and reduce the risk of cross-border transactions.