SoFi (SOFI) stock was down on Tuesday, even after the financial technology company announced a new partnership with enterprise infrastructure provider Lightspark. With this agreement, SoFi will offer an international money transfer service via the Universal Money Address (UMA). This will allow for quicker transfers with lower fees when compared to traditional remittance service providers. That’s possible through Lightspark’s use of the Bitcoin Lightning Network.
SoFi said the international money transfer service will launch later this year. When it does, the company’s service will offer some of the lowest transfer rates in the world. The company will also offer its users transparency, with rates and fees shown before funds are sent. This service will be available 24/7 through the SoFi app.
SoFi CEO Anthony Noto said, “For many SoFi members who regularly send money to loved ones internationally, the ability to quickly transfer money at low cost isn’t just a convenience, it’s a meaningful improvement to their everyday financial lives. By embedding this directly into SoFi’s app, we’re unlocking the value of blockchain technology, to give members faster, smarter, and more inclusive access to their money.”
While SoFi stock was initially up in early morning trading today, the shares have fallen 4.21% as of this writing. However, SOFI stock was still up 50.84% year-to-date and 228.77% over the past 12 months. Strong consecutive quarterly beats have pushed the shares higher over the past year.
Turning to Wall Street, the analysts’ consensus rating for SoFi is Hold, based on five Buy, 11 Hold, and four Sell ratings over the past three months. With that comes an average SOFI stock price target of $20.06, representing a potential 14.2% downside for the shares.
