SoFi to launch international money transfer service

[SoFi Technologies Acquires Technisys SA For $1.1 Billion]
Justin Sullivan/Getty Images News

SoFi (NASDAQ:SOFI [https://seekingalpha.com/symbol/SOFI]) said it will launch an international money transfer service later this year, allowing members to send funds abroad directly through the SoFi app with lower fees and faster delivery than traditional providers.

The service, powered by Lightspark’s Universal Money Address (UMA) and the Bitcoin Lightning Network, will make SoFi one of the first U.S. banks to offer blockchain-based remittances.

The service converts U.S. dollars to bitcoin in real-time and routes funds across borders using the Bitcoin Lightning Network. The funds are then instantly converted back into local currency and delivered directly to the recipient’s bank account in the destination country's local currency.

SoFi said transfers will be available 24/7 within its app, with upfront disclosure of exchange rates and fees, and total costs below the current national average.

At launch, SoFi’s international transfer service will first be available in Mexico with more countries to be added shortly after launch.

SOFI shares rose 2.7% premarket.

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