SendFriend, a remittance startup from New York which uses XRP tokens to perform international money transfers managed to get $1.7 million financial backing from Barclays Bank and Ripple company.
The company has announced lately that it received investments from the global giants as Mastercard Foundation, Barclays Bank along with other participants including MIT Media Lab, Techstars Incubator, Mahindra Finance, 2020 Ventures and 8 Decimal Capital. In September 2018, Barclays bought a stake in SendFriend project via its accelerator programme Barclays powered by TechStars.
As the project's management noted received funds would be allocated for staff expansion, with some part to be spent on community and marketing issues.
"Through a partnership with blockchain company Ripple, SendFriend leverages xRapid to create a seamless money transfer experience. XRP is used as a liquidity vehicle for cross-border payments, enabling SendFriend to circumvent the corresponding banking system and convert USD to XRP to PHP in a matter of seconds,” the company’s press release reads.
The startup will initially focus on labour migrants from the Philippines who regularly conduct remittances to their homeland from the USA. SendFriend claims that its commissions will be 65% below the average in the traditional cross-border transfer industry.
SendFriend has also shared its plans to open a business in New Jersey in the near term, "but will soon be available to Overseas Filipino Workers (OFWs) in other states via desktop and mobile. Customers can now request early access and claim three fee-free transactions" at the company website.