The Philippines remain a key area for Bitcoin in terms of taking on the remittance market. Coins.ph, one of the major Bitcoin services companies operating in this market, launched a mobile application called Teller. In doing so, the company can now offer its services to Indonesia and Thailand as well.
Teller – A Peer-to-peer Approach to Bitcoin And its Use Cases
It is no secret that Bitcoin is a far superior way of transferring funds all across the world in terms of remittance. Services such as Western Union are far too expensive for both the sender and the recipient, whereas Bitcoin transactions only invoke a minute transaction fee. This had lead a “remittance arms race” to focus on countries such as the Philippines.
But remittance itself is not the only intended market for companies such as Coins.ph, who want to push Bitcoin adoption and usage to make it an integral part of everyday life. With its new application Teller, Coins.ph aims to link up customers across the Philippines, Indonesia and Thailand through the blockchain in an effort to make financial services more accessible.
One of the use cases for the Teller application comes in the form of mobile top-ups with Bitcoin. Any teller user can look for a third-party seller; a person, not necessarily a company, to accept local currency in any of the three aforementioned countries. This allows the buyer to gain access the to digital currency in a convenient manner.
The exchange of funds occurs entirely through the blockchain, giving all involved parties full control of their money at any given time. Additionally, every transfer of funds is denominated and held in local fiat currency to avoid any confusion. A service such as Teller could be a major step forward in terms of digitizing the way we transfer value around the world.
It is not the first time a money remittance application launches in this part of the world. Just a few months ago, Abra was introduced, a mobile application turning customers into mobile money exchangers. With such a disruptive potential behind both services, remittance services in The Philippines can be taken entirely out of the financial ecosystem as we know it.
While both applications may serve the same goal, there is a vast difference between Abra and Teller. Abra’s main (and only) focus is on the remittance market, whereas Teller offers additional services to its users. Both business models offer a tremendous potential to impact the daily lives of millions of people for good.
Servicing the Developing World Too Costly for Banks
In fact, you could go as far as saying that both Abra and Teller are the only hope of bringing a cheaper remittance-and-services model to the developing world. Traditional banks, who would love nothing more than to expand their services to the developing world, are unable to do so due to high costs.
“It’s impossible to serve [the unbanked] with branches. The costs are too high, even in cities. Think about someone who is earning $200 a month, and has an average balance of $100. The bank will make $3 a year on them, if lucky. The minute that customer walks into a regular branch, the bank is already losing money.” – Coins.ph CEO Ron Hose told the media in a statement.
What may be the most important aspect of both Abra and Teller is that both applications will include a rating system in order to keep track of user satisfaction. Rating systems are a key part in the evolution of Bitcoin peer-to-peer interactions, as it is important for people to rate their experiences and uphold good behavior at all times.
Source: Press release via email
Images courtesy of coins.ph and Teller