Payments via remittance is something not new to a lot of foreign workers. But the system as it is currently is not only slow but somehow expensive. RippleNet has, therefore, assured the teeming foreign workers in Japan of their plans to make payments process easier.
45,000 of Thai Workers are Foreigners
Japan is home to about 45, 000 foreign workers working tirelessly to make ends meet. Usually, these workers save money to send to their families back at home. They do this via the traditional remittance payment platform.
Unfortunately, remittance can be expensive in sending payments even as some have observed that it can be slow too. To this effect, RippleNet has presented itself as a savior to these people.
As a decentralized network operating worldwide with payment providers and banks, RippleNet has partnered with Siam Commercial Bank and SBI remit.
The reason for the partnership is to ensure that Thai foreign workers can send their families at home money in matters of minutes. This is contrary to the traditional days it used to take.
A 2004 article published had identified the relevance of payments via remittance for Japan’s foreign workers. During that time, Enrique V. Iglesias who is the President of Inter-American Development Bank had said:
“Japan is an important source of remittances. It is a major, major source of income. We’d like now to study how to make remittances more productive.”
Good enough, there seems to be a way out to make remittance “more productive” 15 years after this statement was made.
Current Remittance Payments is awful
There are many industries carrying out remittance payments worldwide. The World Bank estimated in 2017 that migrants utilized remittance payments to send to their families a total of $450 billion.
Regrettably, the world financial institution noted that out of this figure, about $32 billion did not get to the target recipients because the cost of cross-border transfer is way too high.
This global system of money transfer involves several stages and parties. And the parties involved have their own charges. Of course, this resulted in migrants having to pay heavily for cross-border money transfers. The fee was so significant that to send money home, workers may have to work 12 hours extra.
The remittance payment system provides senders the option of bank-to-bank or private channels such as Transferwise and Western Union. Unfortunately, either of these options is expensive and slow. No doubts, this is a big concern for migrants whose aim of leaving their country is to make money to support their families at home.
Remittance Payments Now to be Instant
The era of slow and expensive remittance payments may soon be over. This is because of the recent collaboration between RippleNet and two partners namely Siam Commercial Bank and SBI Remit. This collaboration would make foreign money transfer easy and convenient.
This arrangement allows Thai workers in Japan to open an SBI Remit account on the net. They can now link the account to a Siam Commercial Bank account who will, later on, issue them a card.
This card is all that is needed to send money via an ATM. And as soon as the desired amount is deposited, it can be accessed in Thailand immediately. Definitely, this arrangement would bring a lot of relief to Thai workers in Japan.