Global cross-border payment market
Currency transfers have become one of the largest global directions of cash flow in the world: at the beginning of 2017 the total volume of such transactions exceeded $150BN. and the volume of all transfers of private individuals was estimated at $3TR in a year.
According to a World Bank study (Remittance Prices Worldwide / PRW for June 2017), the weighted average costs for implementing such transactions are 5.57% of the transaction amount.
Surprisingly the most “expensive” way of conversion with transfers is a bank transfer — about 10%, but at the moment it remains the most popular and sought-after way of transfers thanks to a developed system of infrastructure, offices around the world and territorial coverage. Also important role in this sector belongs to large global specialized players such as Western Unionand Moneygram.
The traditional model for the implementation of such transactions involves a complex currency movement transfer of money to the bank’s branch, the exchange of one currency for another (if necessary), the transfer of funds between the two banks by correspondents, and the transfer of the currency by the bank to its account.
This usually requires a certain time from one to several banking days and costs the client as was noted above with significant expenses making up about 5–10% of the transferred amount.
The #TimaxPaysystem looks at this process differently.
We proceed from the understanding that the money resources needed for customers in different currencies are already exist in the actual locations and the form they need — another currency in the form of assets on the crypto exchange, and the actual transfer of money representing the transfer of electronic bits should be bypassed to the client In the minimum reasonable amount.
This is possible due to TimaxPay’s system new concept, which consists in the fact that the funds you need in the fiat or cryptocurrencies already in the location/country you need on the crypto-exchange you are interested in (in other words, funds already exists in all locations where our system is open to our service users). We creating money or its modern embodiment in the form of currency as a means of exchange: we accept your currency in exchange for the one that interest you or the recipient in any location covered by the work of our services. So basically we are washing away borders and barriers for international transfers.
You exchange with our service or its other client directly bypassing all possible delays and additional costs for currency transfer and conversion. The only fair basis for such an exchange in our opinion can only be the market average exchange rate fixed at the current time of the global money market.
At the same time, the service fee for transmission services lags incredibly low (no more than 1% of the transaction size). And this is our main principle of work, we do everything so that our customers pay minimum reasonable costs.
Undoubtedly such a concept requires the construction of a modern, efficient financial and analytical system, the best solution for the implementation is the use of Blockchain technologies. In addition to the extensive financial architecture that encompasses and connects all the major financial centers of the world into a single network, it is necessary to introduce a finely tuned algorithm for managing the liquidity of #TimaxPay system funds around the world.