Blockchain redefined cross-border remittances as it only takes 3 seconds from HK to the Philippines

When it comes to cross-border remittance or payments, we must first think of Ripple, of which the cross-boarder remittance based on cryptocurrency-xrp. With its characteristics of “fast, low cost, and reliable technology” , ripple has achieved very good results in the financial industry, especially cross-border payment. But the financial industry is a big and spectacular pie. It can't be swallowed by ripple. So except ripple, there are many other blockchain technologies that are coveting this pie, such as the Ant Financial which is not based on cryptocurrency and we are talking about today.

On June 25th, the world’s first blockchain-based e-wallet cross-border remittance service was launched in Hong Kong. Users of Hong Kong version of Alipay- AlipayHK can transfer funds to Philippine wallet Gcash via blockchain technology. This means that the application scene of the blockchain ushered in new breakthroughs.

The first remittance was completed by Grace, a Filipino who worked in Hong Kong for 22 years. It took only 3 seconds and it used to take 10 minutes to several days.

With the support of blockchain technology, cross-border remittances can now be handled in the same way as local transfers, arrive in real time, save money, save trouble, and be safe and transparent. This is another innovation and exploration of Ant Financial in the blockchain application scene after public donation, food traceability, and rental management.

There are many shortcomings in the traditional cross-border remittance business: due to more involved organizations, laws, regulations, and exchange rates, the process of remitting is very complicated, and it usually takes 10 minutes to several days to arrive. If you remit after 7 PM, it won’t arrive until the next day at the soonest. If you go to the counter for remittances, you must pay attention to the time of work. It will take longer to return the money if there are something wrong and you may even lose it.

In order to solve these problems, Alipay HK and the e-wallet GCash in the Philippines are looking for ways until they meet the block chain team of Ant Financial. In 2017, Ant Financial was the world's largest patent company applying for blockchain, and it has been continuously exploring the boundaries of blockchain applications.

According to reports, banks had previously achieved cross-border remittances within the internal blockchain, but did not cross organizations, and the transfer between users and banks was still a traditional model; There are also cross-border remittances based on cryptocurrencies, but because the supply and demand of currencies and currency values may fluctuate rapidly in a short period of time, it is difficult to make large-scale commercial use.

However, this time, AlipayHK collaborated with Gcash to become the world’s first e-wallet to use the blockchain across the entire cross-border remittance chain, and Standard Chartered Bank is responsible for day-end fund settlement and foreign currency exchange. Gcash users can consume immediately upon arrival. Cross-border remittances can also be credited in real time as if they were domestic transfers. The 7×24-hour uninterrupted, cost-effective, safe and transparent way can be described as redefining “cross-border remittances”.

From Hong Kong to the Philippines, blockchain cross-border remittances take the first step, and in the future it will be possible to benefit more users in countries and regions. All in all, there are infinite possibilities in the field of blockchain finance. At present, there are hundreds of flowers in bloom. In the development process, we predict that this area will become the beginning of large-scale application of blockchain, and will also have a group of representative blockchain companies.