SoFi (NASDAQ: SOFI) has announced its upcoming international money transfer service, which will allow its members to send funds abroad directly from the SoFi app, aiming to offer lower fees and faster delivery compared to traditional remittance providers. The service will utilize Universal Money Address (UMA) technology, enabled by Lightspark, an enterprise infrastructure provider that leverages the Bitcoin Lightning Network.
SoFi is positioned to be among the first U.
S. banks to offer a blockchain-powered remittance service. The new offering is designed to provide quick and cost-effective international money transfers, aiming to improve the financial lives of members who regularly send money to family overseas.
Anthony Noto, CEO of SoFi, stated that by integrating this service directly into the SoFi app, the company is unlocking the value of blockchain technology to provide members with faster, smarter, and more inclusive access to their money. David Marcus, CEO and co-founder of Lightspark, noted that digital banks are embracing UMA due to its speed, cost-efficiency, and security, emphasizing its reliance on Bitcoin as an open payment network. He added that UMA on SoFi will enable customers to move dollars instantly, globally, and at any time, indicating strong demand based on SoFi’s waitlist.
The international money transfer service is scheduled to launch later this year. SoFi aims to be one of the lowest-cost platforms for international transfers, with total costs projected to be below the current national average. For transparency, exchange rates and fees will be displayed upfront before members complete a transaction. The service will be accessible 24/7 directly through the SoFi app, eliminating the need for third-party applications.
SoFi’s service, powered by UMA, functions by converting U.
S. dollars to Bitcoin in real-time, routing the funds across borders via the Bitcoin Lightning Network. The funds are then instantly converted back into the local currency and delivered directly to the recipient’s bank account in the destination country. Lightspark’s network of partner banks and financial platforms facilitates a seamless and secure transfer experience.
At its initial launch, SoFi’s international transfer service will be available for transfers to Mexico, with plans to add more countries shortly thereafter. This phased rollout is intended to ensure speed, security, and consistency for members from the outset. The international money transfer capabilities will be available through SoFi Checking & Savings, which is offered via SoFi Bank, N.
A., Member FDIC. Members can join a waitlist to gain early access to the self-serve international money transfers later in the year.
Lightspark focuses on building modern payment solutions powered by Bitcoin, positioning it as an open and neutral network for value transfer. The company provides enterprise tools like Connect, UMA, and Spark to enable businesses to send and receive money instantly, securely, and at a reduced cost, anytime and anywhere.
