BCRemit leverages Circle's USDC to optimize global remittances
We admire the hard work of migrant workers. By providing a quicker and more cost-effective way to send money home, we're not just running a business; we're fulfilling a purpose. Our adoption of USDC through Circle has been instrumental in this mission.”
Global remittances are the lifeblood for many families around the world, facilitating financial support across borders. Yet, traditional remittance channels have long been plagued by high fees, slow transfer times, and cumbersome processes. BCRemit sought to transform this landscape for migrant workers, particularly those from the Philippines working in the UK and the US. By integrating Circle’s USDC, BCRemit has redefined the remittance experience for its users — making it faster, cheaper, and more accessible than ever before.
High costs and slow transfer times plague remittance businesses
BCRemit faced the usual challenges inherent in traditional cross-border payments: lengthy processes with lots of intermediaries, added fees, and complex pre-funding.
- Expensive intermediaries: Remittance companies incur fees with each intermediary dealt with during the remittance process. Those fees get passed on to customers, with the global average remittance fee around 7% per transaction. Each intermediary means less money that makes it back home to migrant workers’ families.
- Inconvenient pre-funding costs: Traditional cross-border transfers take one to three business days or longer to settle, and companies must often take out short term loans to bridge liquidity gaps — increasing costs and reducing liquidity.
As a former migrant worker myself, I experienced first-hand the cost and difficulty of sending money back home. I knew there had to be a better way to serve hard-working individuals supporting families abroad.”
Cutting fees and expediting transfers with USDC
BCRemit turned to Circle to harness the power of blockchain technology, using USDC to overcome the challenges of traditional remittances to provide the following benefits:
- A stable digital dollar: USDC is a fully reserved digital dollar, offering price stability and 1:1 backing with US dollars. Unlike other digital assets with volatile prices, USDC provides stability, crucial for remittances where predictability of value is essential.
- Speed and availability: Blockchains operate 24/7, unlike traditional banking hours. With USDC, BCRemit can process transactions instantly, even on weekends and holidays. This flexibility helps BCRemit attract new customers and better align with their schedules.
- Bypassing intermediaries: With on-chain USDC, BCRemit is able to avoid fees that intermediaries traditionally apply at each step of the global remittance process. Eliminating the need for correspondent banks significantly cuts operational costs, and BCRemit passes those savings on to its users.
- Reduced capital requirements: Faster settlement times means that BCRemit no longer needs substantial capital reserves for pre-funding accounts in destination countries. This reduction in liquidity constraints minimizes the need for working capital loans, thereby decreasing interest expenses.
- Regulatory compliance and transparency: Circle's commitment to compliance and regulatory standards provided BCRemit with confidence. USDC's transparent reserves and regular audits align with BCRemit's emphasis on security and trustworthiness.
The collaboration between BCRemit and Circle has yielded remarkable outcomes, including a dramatic reduction in costs. BCRemit managed to reduce the combined cost of transfer fees and FX margins to just over 1%, far surpassing the UN Sustainable Development Goal of reducing remittance costs to below 3% by 2030. Compared to banks and legacy remittance companies, BCRemit's fees are up to 90% lower, putting more money into the hands of recipients.
Faster transaction times were another crucial benefit. Transfers that previously took days are now settled in seconds. This speed ensures that families receive funds when they need them most, without delays caused by banking hours or holidays. The ability to operate outside traditional banking hours means customers can send money at their convenience, and BCRemit can manage funds more flexibly. For example, BCRemit can execute currency exchanges beyond traditional banking hours, capitalizing on favorable rates and offering better FX margins to customers.
The USDC integration also enhances liquidity management by minimizing the processing time associated with pre-funding accounts. This efficiency frees resources and reduces the costs associated with borrowing funds to cover liquidity gaps. Optimized working capital translates into stronger financial health for BCRemit, allowing for reinvestment into services and growth.
A seamless and user-friendly USDC integration
BCRemit integrated USDC into its treasury operations through a robust backend integration. While customers interact with the app's user-friendly interface, the backend seamlessly processes transactions using USDC on the blockchain. The result is faster transfers for users and more flexibility for BCRemit. The stability of USDC compared to other cryptocurrencies enables BCRemit to manage liquidity more efficiently — converting fiat currencies to USDC without the pressure to immediately convert back to fiat currency in order to avoid market volatility.
Despite the advanced technology powering their services, BCRemit maintains a customer-centric approach. Users who might not be tech-savvy can easily send money via BCRemit without dealing directly with cryptocurrencies or complex processes, ensuring the service remains accessible and easy to use to migrant workers regardless of their technical background.
Transforming lives through better remittance services
BCRemit's partnership with Circle has had a profound impact on its customers. By offering both bank account and e-wallet credits as well as cash pick-up options at over 17,000 locations in the Philippines, BCRemit ensures that even unbanked recipients can access funds easily, promoting greater financial inclusion. By reducing costs and simplifying the remittance process, BCRemit empowers migrant workers to support their families more effectively.
Moving forward with USDC
BCRemit's strategic partnership with Circle exemplifies how innovative financial technology can address longstanding challenges in global remittances. By integrating USDC into their operations, BCRemit has not only optimized its business model but also made a tangible difference in the lives of countless individuals relying on these vital funds.
This case underscores the transformative power of blockchain and stablecoins in creating more inclusive, efficient, and user-friendly financial services. Circle remains committed to supporting forward-thinking companies like BCRemit in their pursuit to empower individuals worldwide through better financial solutions.
We partnered with Circle because of their focus on compliance and their regulated, transparent operations. This partnership allowed us to leverage USDC's benefits while aligning with global regulatory standards.”
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