Facilitating cross-border settlements and remittances is a great use for blockchain-based technologies such as ZED Network.
Remittances are peer-to-peer transactions from migrant workers to family or friends living back home. These payments are mainly used for basic expenses such as food, clothing, and education, making them vital to the livelihood of those in developing nations.
This is a $600Bn market and increasing every year, with fees accounting for almost $80 Bn. These excess fees cost the African continent $1.8 billion a year; enough money to pay for the primary school education of 14 million children in the region!
These transactions still operate on decades-old technology making them slow, expensive and cumbersome.
Apart from the big 4 (Western Union, MoneyGram, etc), 75% of the market is composed of the smaller MTOs, that are too small to scale.
ZED Network is designed to address this real market need by connecting these “licensed” MTOs with each other in a manner similar to SWIFT connecting banks globally.
Rather than competing with MTOs, we want to help them by providing fast, inexpensive and convenient remittance transactions.
We plan to disrupt this $600B/year global remittance market by helping our MTO clients reduce their remittance costs and provide users with a faster and more transparent remittance experience.
We will also offer our MTO clients a comprehensive suite of turnkey solutions for their critical business needs such as Digital Wallets, Back office Admin, and KYC/AML Monitoring & Reporting, all with a single point of integration.
Because we will combine transaction volumes of hundreds of MTOs, we hope to leverage our scale to partner with top banks, payment processors and insurance companies to provide these services to our MTOs at a significantly reduced and more reasonable cost.
Any MTO that we add to our network, could potentially become another node for other MTOs to partner with for sending or receiving remittances, hence adding to the network value and creating a Network Effect that will benefit all partners.