Digital CC (ASX:DCC) has revealed the upcoming beta launch of digitalX Pocket, a remittance product, in the June 2015 quarter.
AirPocket enables cash to be transmitted anywhere in the world through a peer-to-peer model, with no institutional intermediary involved.
It extends the geographic reach of the cash remittance network beyond retail-location services by allowing anyone who owns a smartphone to act as a money transmission service, whether they are merchants, retailers, or individuals.
It is one of the first services to offer a user-to-agent based model without the use of crypto-currency and is based on a similar concept to Uber and Airbnb.
Blockchain technology has been an important part of DCC's business operations to date and provides the company with a major competitive advantage for the disruption of the remittance market.
AirPocket utilises the technology in combination with existing banking technology to introduce a new form of payments.
Once the agent has sent the funds, the sender receives a code via an SMS, which they send onto the recipient.
The recipient then locates agent in their country and provides them with the code, which credits the agent’s account.
The agent then provides the recipient with the cash in their local currency. Fees to send currency are significantly lower than average fees paid by the sender using other remittance channels.
This is due to the low cost mobile peer-to-peer technology implementation as well as the use of the Blockchain technology to store transaction records.
The fees are distributed between DCC and the two agents.
The global remittance market is worth over half a trillion dollars, so DCC is well leveraged to success being capitalised at $28 million.
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