SoFi Technologies, the financial technology company, is collaborating with Lightspark to introduce international money transfers powered by blockchain technology.
The launch of SoFi’s new international transfer feature is planned for later this year. This service will be seamlessly integrated into the SoFi mobile application, enabling users to directly send funds internationally without needing separate apps.
Lightspark, a specialist in enterprise infrastructure utilizing the Bitcoin Lightning Network, will provide the technological backbone for this feature through its Universal Money Address (UMA) protocol.
Anthony Noto, CEO of SoFi, commented, “For many SoFi members who frequently send money to family and friends overseas, the ability to quickly and affordably transfer funds isn’t just convenient; it significantly improves their financial well-being.”
“By directly incorporating this capability into the SoFi app, we’re leveraging the benefits of blockchain technology to provide members with faster, more efficient, and more accessible control over their money.”
Before completing any transaction, users will have full visibility into the prevailing exchange rates and any associated fees.
The process involves converting US dollars into Bitcoin in real-time, followed by secure fund transfers using the Bitcoin Lightning Network.
At the destination, the Bitcoin is then converted back into the local currency and deposited directly into the recipient’s designated bank account.
David Marcus, CEO and co-founder of Lightspark, stated, “SoFi is a leading innovator in the financial technology sector within the United States.”
“The integration of UMA on SoFi enables customers to instantly move US dollars across borders at any time. We are excited by the strong demand seen via SoFi’s waitlist, showing that users are enthusiastic about embracing the future of global payments.”
Initially, the international money transfer service will be available for transfers to Mexico. Plans are in place to extend the service to additional countries shortly after the initial launch.
SoFi also intends to integrate this international money transfer service with its SoFi Checking & Savings accounts later this year.
“SoFi Partners with Lightspark for Blockchain-Based International Transfers” was originally reported by Electronic Payments International, a brand owned by GlobalData.
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