Fintech firm SoFi Technologies has partnered with Lightspark to power blockchain-enabled international money transfers.
The anticipated launch of SoFi’s international money transfer service is set for later this year. The service will be embedded within the SoFi app, offering a direct platform for international financial transfers without the necessity of external applications.
Lightspark, which specialises in providing enterprise infrastructure by utilising the Bitcoin Lightning Network, will implement the technology through Universal Money Address (UMA).
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.”
Users will be provided with information on exchange rates and fees before they execute a transfer.
The underlying mechanism of the service involves real-time conversion of US dollars into Bitcoin, followed by the transfer of funds via the Bitcoin Lightning Network.
Upon reaching the destination, the Bitcoin is then converted into the local currency and deposited into the recipient’s bank account.
Lightspark CEO and co-founder David Marcus stated: “SoFi is one of the most innovative and forward-thinking financial platforms in the US today.
“UMA on SoFi means customers can move dollars instantly, any time, globally, and we’re excited to see the demand via SoFi’s waitlist, proving that people are ready for the future of payments.”
Initially, the service will be made available to users transferring funds to Mexico. The intention is to expand the service to include additional countries soon after the initial launch.
Later in the year, SoFi intends to integrate this international money transfer service with SoFi Checking & Savings.
Read more on Electronic Payments International
