Cryptocurrency remittance solutions allow individuals and businesses to send digital currencies via a transfer between two parties. Any individual with a cryptocurrency wallet, which are sometimes included as a feature within the remittance solution, will instantly receive the digital assets and can quickly exchange them between cryptocurrencies and fiat (cash) money. Perhaps the biggest perceived benefit of remittance software is the avoidance of intermediaries, such as central banks and third-party financial services providers, while conducting international money transfers. These transfers will instantly deliver the currency to the accepting party, even internationally.
Companies choose to use these solutions in comparison to traditional remittance software because the fees are substantially lower and to minimize the impact from international regulating bodies. These solutions provide an easy mechanism for companies to distribute wallets and instantly transfer cash internationally as needed. Their employees, the recipients, can receive digital assets and exchange them for local fiat currency for real-world use. Other uses of cryptocurrency remittance solutions for business include philanthropic international payments.
Cryptocurrency payment apps function fairly similarly to cryptocurrency remittance solutions, but payment apps cannot typically facilitate the scale of institutional trading, nor provide the immediate cash-out functionality. While some remittance tools provide cryptocurrency wallets as a feature, the core functionality is very different. Wallets are simply a place to store cryptocurrencies and a destination for sending assets; traditionally, they do not facilitate actual transactions.
To qualify for inclusion in the Cryptocurrency Remittance category, a product must:
- Facilitate international remittance transfers
- Primarily operate using cryptocurrencies as opposed to fiat money
- Provide a means to exchange digital assets for fiat currency
