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.

SoFi Technologies Inc. (NASDAQ: SOFI) has announced plans to introduce an international money transfer service later this year, leveraging blockchain technology to offer lower fees and faster delivery compared to traditional providers. The service will be available directly through the SoFi app, utilizing Lightspark’s Universal Money Address (UMA) and the Bitcoin Lightning Network [1].

The new service will convert U.S. dollars to Bitcoin in real-time and route funds across borders using the Bitcoin Lightning Network. Upon arrival, the funds will be instantly converted back into the recipient's local currency and deposited directly into their bank account. This innovative approach aims to provide a seamless and cost-effective transfer experience, making international money transfers more accessible and affordable for SoFi members [2].

The service is expected to launch in Mexico initially, with plans to expand to additional countries shortly after the official launch. SoFi’s CEO, Anthony Noto, emphasized the significance of this service for members who regularly send money abroad, stating that it will offer faster, smarter, and more inclusive access to their money [3].

The service is not SoFi’s first foray into crypto. In 2019, the company introduced crypto trading, which was later paused following regulatory backlash. With this new service, SoFi is re-entering the crypto space, signaling its intention to offer staking and borrowing services in the future [2].

Lightspark, led by former Facebook blockchain lead David Marcus, will provide its Universal Money Address protocol to enable seamless transactions across the open Lightning BTC payments network. The service is expected to roll out next year and will be accessible directly on the SoFi app, 24/7 [1].

References:
[1] https://seekingalpha.com/news/4486954-sofi-to-launch-international-money-transfer-service
[2] https://www.tradingview.com/news/the_block:8b81b1427094b:0-sofi-taps-lightspark-as-it-looks-to-use-bitcoin-lightning-for-an-international-money-transfer-service/
[3] https://www.ainvest.com/news/sofi-introduces-global-money-transfer-service-fees-faster-delivery-2508/