SoFi (NASDAQ: SOFI) and infrastructure provider Lightspark are teaming up to deliver the former’s upcoming international money transfer service. It enables members to send funds abroad directly from the SoFi app.
Lightspark, an enterprise infrastructure provider that uses the Bitcoin Lightning Network, will enable the technology via Universal Money Address (UMA) to send and receive money, with access to an open global network for payments. SoFi will be one of the first US banks to offer a blockchain-powered remittances service.
“For many SoFi members who regularly send money to loved ones internationally, the ability to quickly transfer money at low cost isn’t just a convenience, it’s a meaningful improvement to their everyday financial lives,” said Anthony Noto, SoFi CEO. “By embedding this directly into SoFi’s app, we’re unlocking the value of blockchain technology to give members faster, smarter, and more inclusive access to their money.”
“SoFi is one of the most innovative and forward-thinking financial platforms in the US today,” said David Marcus, CEO and co-founder of Lightspark. “Digital banks are embracing UMA because it’s fast, cheap, and secure, and it uses the only open payments network that exists, Bitcoin. UMA on SoFi means customers can move dollars instantly, any time, globally, and we’re excited to see the demand via SoFi’s waitlist, proving that people are ready for the future of payments.”
SoFi’s international money transfer service will launch later this year. Exchange rates and fees will be displayed up front, before members hit send. The service will be available 24/7 directly on the SoFi app, without needing to use a third-party app.
The new international money transfer service converts U.S. dollars to Bitcoin in real-time and routes funds across borders using the Bitcoin Lightning Network. The funds are then instantly converted back into local currency and delivered directly to the recipient’s bank account in the destination country’s local currency.
At launch, SoFi’s international transfer service will first be available in Mexico, with more countries to be added shortly after launch. SoFi’s international money transfers will be available through SoFi Checking & Savings later this year. SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. Members can sign up to join a waitlist to receive access to SoFi self-serve international money transfers later this year.