Startup uses bitcoins to transfer remittances from US to Mexico
Bridge21, a Denver-based remittance startup that uses bitcoins to conduct its cross-border payments, announced that it has added 38 new banks to its partner bank roster, a measure that enables more U.S.-based individuals to make international money transfers from the U.S. to Mexico.
In total, bridge21 now supports 56 banks and credit unions, which opens the door for more customers to experience lower exchange rates, according to the company.
Some of the new banking support includes Bank of America, Citibank, Chase, Fidelity, Navy Federal Credit Union, PNC Bank, SunTrust Bank, TD Bank, US Bank, USAA and Wells Fargo, among others.
To provide its low-cost cross-border payment service, bridge21 buys bitcoin in the U.S. with dollars and sells them for pesos in Mexico.
The measure does not make a difference on the amount of U.S. dollars its customers want to send to Mexico or how much Mexican pesos they want their recipients to receive, but it results on better exchange rates, according to the company.
“Last week we consistently offered 14% better than mid-market rates for large amounts. That’s incredible. No one else does that,” said Bridge21’s CEO, Will Madden in a public statement.
“On average, bridge21 provides a savings of about 5% over the competition. This means a customer sending US$ 500 a week could save around US$ 1,450 a year using bridge21, and if they wait for better-than-market rates, it can be a lot more,” Madden added.
Bridge21 charges a 1% fee per money transfer.