Money service providers such as Western Union and MoneyGram are set to lose roughly $400m in remittance commission as El Salvador’s latest Bitcoin app, the Chivo Wallet takes ground.
According to reports by CNBC, these remittance service providers may start losing money and customers.
MacKenzie Sigalos, CNBC’s technology reporter, said that the loss in remittance commission could be close to $400m a year.
She said, “If you want to send $10 from Canada to El Salvador via Western Union’s app = $3.24 fee; Muun [to] Chivo wallet = $0.10; Chivo [to] Chivo = free. Present Bukkele’s new bitcoin wallet could cost co’s like Western Union $400m/y.”
CoinMarketCap said, remittances account for a $6bn industry, almost 23% of the country’s GDP and money service providers like Western Union or MoneyGram are the chosen method of remitting funds to the country.
These statistics are enough for these remitting providers to come together to see how they can ameliorate the situation as regards ensuring they don’t lose their customers.