SoFi Introduces Global Money Transfer Service with Lower Fees and Faster Delivery

SoFi, a fintech company, plans to launch an international money transfer service later this year. The service will allow users to send funds abroad directly through the SoFi app with lower fees and faster delivery than traditional providers. The service is powered by Lightspark's Universal Money Transfer Network.

Title: SoFi to Launch International Money Transfer Service

SoFi Technologies, a leading fintech company, is set to launch an international money transfer service later this year. The new service, which will be available directly through the SoFi app, promises to offer lower fees and faster delivery times compared to traditional providers. The service will be powered by Lightspark’s Universal Money Address (UMA) and the Bitcoin Lightning Network, making SoFi one of the first U.S. banks to offer blockchain-based remittances [1].

The service will convert U.S. dollars to Bitcoin in real-time and route funds across borders using the Bitcoin Lightning Network. Once the funds reach their destination, they will be instantly converted back into the recipient’s local currency and delivered directly to their bank account. The transfers will be available 24/7 within the SoFi app, with upfront disclosure of exchange rates and fees, and total costs below the current national average [1].

At launch, the international transfer service will initially be available in Mexico, with plans to add more countries shortly after the initial rollout. This expansion is part of SoFi’s broader strategy to leverage blockchain technology for faster and more efficient cross-border payments. The service follows SoFi’s reentry into crypto after halting services in 2023 during its transition to a national bank [2].

The integration of Lightspark’s UMA, which runs on Bitcoin’s Lightning Network, is designed to facilitate near-instant cross-border payments. The Bitcoin Lightning Network is a layer-2 network designed to help fulfill Bitcoin’s original vision of becoming global, peer-to-peer digital cash. By creating a network of off-chain payment channels, it circumvents the slow transaction times and high fees of the main Bitcoin blockchain, enabling instant, high-volume micropayments [2].

SoFi’s international money transfer service is set to address longstanding pain points in traditional remittance services by offering transparent pricing and faster delivery times. The service will provide users with upfront disclosure of exchange rates and fees, addressing the opacity and high costs often associated with traditional remittance services [2].

SoFi shares rose 2.7% premarket following the announcement, reflecting investor optimism about the company’s strategic move into international money transfers. The launch of this service is expected to enhance SoFi’s competitive position in the fintech market and expand its user base by offering a more efficient and cost-effective solution for international money transfers [1].

References:
[1] https://seekingalpha.com/news/4486954-sofi-to-launch-international-money-transfer-service
[2] https://www.coindesk.com/business/2025/08/19/sofi-taps-bitcoin-lightning-network-for-global-remittances-with-lightspark