Rebittance Forced To Revamp Bitcoin Remittance Business Plan

Interesting news has appeared on Reddit this morning, as the Bitcoin remittance service provider Rebittance will be shutting down its operations.Even though Bitcoin and remittance seem to be a perfect match for one another, it is rather difficult to penetrate the market with a solution people are not actively looking for right now. However, the company is planning to forge a new path, by focusing on the Philippines first and foremost.

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Rebittance Revamps Its Business Plan

TheMerkle_Remittance Rebittance

Now and then, a technological solution linked to financial services is simply ahead of its time. By the look of things, Rebittance seems to fall under that category, as the company focused on bringing remittance solutions through Bitcoin. With its lower transaction fees and global currency allure, Bitcoin is a perfect fit to bring cheaper remittance solutions to consumers all over the world.

But at the same time, one has to wonder whether or not people are actually looking forward to using such a system. A lot of people relying on remittance payments prefer to stay anonymous, and Bitcoin would not allow them to do that directly. Even companies such as Rebittance will have to perform some level of identity verification before paying the funds to whoever claims to be the rightful recipient.

Come February 8, 2016; Rebittance will no longer be offering their Bitcoin remittance service in its current form. Satoshi Citadel Industries CEO John Bailon sent out the emails to platforms users earlier today, informing them of the change coming to Rebittance. However, the company is not shutting down completely, as they will be targeting a different market for the time being.

Whatever resources and efforts Rebittance has left will be used to strengthen the payment corridor in and out of the Philippines. As most people are well aware, there are tons of Filipinos working abroad and sending part of their paycheck back home to family members. Right now, they have to rely on services such as Western Union, which charge obnoxiously high fees.

Too Early For Bitcoin Remittance Solutions?

TheMerkle_Remittance Rebittance Bitcoin

Bitcoin can take some of these problems away, by offering an alternative that is equally as fast but far cheaper. The sender will still pay the fees, similar to how Western Union works. But those fees will be a fraction compared to normal remittance fees. With Rebittance focusing their attention on this market, Bitcoin adoption in the Philippines can thrive over the next few years.

Rebittance is not the first remittance company forced to rethink their business plan. In 2015, Bitcoin startup Beam decided to take a different approach and leave the remittance market to what it is for now. Most people are not even looking for alternative solutions in that particular industry. At the same time, this is one of the strengths of Bitcoin companies, as they can forge a new path instead of being forced to shut down.

Source: Reddit

Images credit 1,2,3

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  • Underwun

    The death of Bitcoin doesn’t mean the death of digital remittances, we will witness costless remittances by way of an efficient independent currency.

    • Andreas K

      And who will pay for the compliance overhead?

      • Jonathan Cross

        Is it really so expensive and complex? Compliance with AML, KYC, etc. would only need to be done on the receiving end (where Bitcoin is converted to Fiat). It is therefore no different than BitPay and is less tricky than what Coinbase is doing.

        I suspect a modified version of LocalBitcoins might be a better model… Simply allowing local money changers / delivery services to handle the last mile, then guaranteeing them daily payouts (eg in USD deposited to a merchant account) for the Bitcoin they receive.

  • EXPmarygarcia

    a cheaper and faster way to send money in the country where I come from? very helpful!

    • Jonathan Cross

      I wonder if they ever got a system actually working. I guess you are in the Philippines? I wonder what sort of market research they did to find out why bitcoin remittance services like this keep failing…