The secret sauce in Telcoin’s remittance recipe boils down to reduced service fees that leading competitors can’t match. Through the use of the Telcoin token and blockchain technology, Telcoin is targeting a 2.5 percent or less service fee to send a remittance. The global average cost of this type of service is around 7 percent.
The arrival of a mobile-focused remittance service that tops the likes of Western Union on service fees will likely come as welcome news to Mexicans, who are in search of affordable service providers that can be safely accessed remotely.
As the global pandemic raged in 2020, total remittances to Mexico “were equivalent to about 3.8% of GDP,” Reuters reported in February.
Telcoin asserts that well over one and a half million Mexican households now depend on inbound remittance from the United States alone as “their most important source of income.”
According to the World Bank, the U.S. – Mexico corridor is valued at $36 billion as of 2019 data.
Positioning itself as a blockchain-powered financial technology platform, Telcoin says its recently revealed partnership with Unipagos will make its ambitions in Mexico a reality.
Ambition, however, is nothing new for Telcoin. After a protracted rollout of services in order for the company to obtain all needed regulatory licenses and government approvals — a massive feat for any company in crypto — Telcoin formally commenced operations as a remittance service provider in February.
Working with Gcash, Telcoin’s inaugural corridor opened with a launch of fiat transfers between Canada and the Philippines. Telcoin says its initial launch market is just the “first step toward offering users a suite of digital financial products leveraging blockchain technology and digital assets.”
Last week, Telcoin confirmed plans to expand the reach of its corridors to consumers in the U.S., Singapore, and Australia in the coming weeks.
Telcoin has also signed remittance agreements with two mobile money platforms in Nepal and Tanzania, although the names of the partners have not yet been publicly disclosed.
Additional corridors and markets are expected to follow after Telcoin launches “V3,” the third version of its official iOS and Android applications before the end of the second quarter.
“The next generation of the Telcoin Platform stack is architected to fully harness the power of DeFi and the reach of telecoms to bring fast and affordable, user-owned financial products to every mobile network subscriber in the world,” Telcoin revealed in its April 16th community update.