Bitcoin remittance platform Cashila: committed to achieving efficient and low-cost cross-border remittances

Cashila is a Europe-based Bitcoin remittance and payment processing platform that aims to transform the traditional remittance market by providing Bitcoin-based payment networks and financial services. The company recently launched a payroll management system for EUR/BTC.

蒂姆•米蒂亚•扎格尔, CEO of Cashila, said:

It still takes three to four days to receive money from the US to a European account, and it can be even worse in developing countries. Services like Transferwise have made it cheaper, but they haven’t made it faster. Our focus is to both make it cheaper and faster.

The remittance market in Europe is growing, but inefficiencies in traditional remittance networks and financial solutions have led to a continuous decline in remittances to some developing countries in Europe and Central Asia since 2013.

According to the International Fund for Agricultural Development (IFAD), one-third of the European remittance market (about $365 billion) goes to the Baltic States, 10 EU countries and Eastern Europe. However, this intra-European remittance market has fallen sharply in the past two years.

“The remittance market to developing Europe and Central Asia has fallen sharply again in 2015, reaching an estimated $42 billion this year, 12.7% less than the previous year, following a 6.3% drop in remittances in 2014.”

According to the report released by IFAD, titled "Sending Money Home: Remittance Flows and Markets in Europe", foreign workers living in Europe send $110 billion in remittances to their families, supporting 150 million people in the world.

Kanayo F. Nwanze, President of IFAD, said:

"We need to ensure that this hard-earned money can be remitted to their families at a low fee, because this money is their hope for life and future, especially in poor rural areas."

Cashila has developed a range of bitcoin-based services to help expatriates and freelancers in Europe in response to the limitations of traditional remittance apps. Cashila claims to be the first payment processor to receive a license from a bank in an EU member state.

Cashila platform allows employees and freelancers to receive their wages in the form of Bitcoin. Users can choose to hold Bitcoin, convert it into Euros, or use Bitcoin directly to pay for things like utility bills, third-party applications, etc.

“We currently have more than 700 users on our platform, with a monthly user growth of approximately 30%. We are in the process of completing our seed round of financing, and in 2016 we will conduct our Series A round of financing, which will enable us to move forward further.”

Bitcoin wallet providers and payment platforms such as Mycelium, Beewallet, and Mycelium Gear have already started integrating Cashila’s API, allowing users to send money directly from Europe to the U.S. through their apps. The Cashila team has also worked with Bitcoin wallet hardware manufacturer Trezor to develop some unique applications to improve the user experience of both products.

Remittance Market Restrictions

Unlike traditional remittance services, Bitcoin allows anyone to safely and easily handle large amounts of remittances. However, the main problem at present is liquidity. For example, the remittance platform Cashila sent hundreds of thousands of dollars in remittances using Bitcoin, and the other party must cash out the Bitcoin and hand it over to the recipient. Currently, the Cashila team is exploring how to clear Bitcoin transactions through international partners.

Zagel explained:

“We are well aware of the current limitations in the remittance market. When it comes to larger transactions, liquidity is an issue. We are trying to address this issue from two aspects: one is to connect to Bitcoin’s liquidity pool, and others are to trade directly with business partners, who will help increase liquidity.”

Ales Ogorevc, a Cashila user, said:

Cashila is a very convenient platform for bill payments, money transfers or online ordering. It is very useful for young entrepreneurs like me who deal with people and companies all over the world every day. I like to try new things and support new services, especially alternatives to banks. I think this service has great potential for development.

However, traditional financial institutions have realized this. Visa Europe, for example, has set its sights on Bitcoin, viewing it as an important foundation for a low-cost remittance network within Europe. Last month, Visa Europe partnered with blockchain startup Epiphyte to develop a Bitcoin remittance application for the mainstream financial market.

It will be interesting to watch how Bitcoin startups compete with traditional financial companies in this space.

Original article: https://btcmanager.com/news/business/cashila-enters-the-european-remittance-market-enables-payments-in-bitcoin/
By Joseph Young
Translator: printemps
Editor: printemps
Source (translation): Babbitt Information