What is a Remittance Service?

online remittance payment

A remittance is simply a payment. Remittance services accept money on behalf of a sender, and send it to a recipient based on instructions from the sender. Bills can be paid by remittance services, and/or money can be sent to an individual. Typically remittance services accept funds via wire transfers, mail, bank drafts, checks, and cash. Traditional remittance services like Western Union and MoneyGram have built their fortunes on the fees they charge for their services.

Money Transfer Apps Are Becoming Popular

As a way to send and receive money within the U.S., services like Venmo (from PayPal) and Square Cash have free apps you can download and connect to your banking information or credit card. These apps generally don’t charge a fee if you’re transferring money from your bank account, but if you use a credit card, there is a fee.

What About People Who Don’t Have a Bank Account or Credit Card?

Customers who want to pay a bill or send money to someone without a bank account or credit card have fewer options and often have to pay higher fees. More and more people who own cryptocurrency like bitcoin, want to be able to use it to pay bills and send money. Currently, the way they do that is by selling a certain amount of bitcoin at the going rate, and transferring that amount to purchase bitcoin that is then deposited in someone else’s cryptocurrency wallet. The recipient can convert the bitcoin into cash.

Coinsource Bitcoin ATMs Let You Send Cash Without Bitcoin

If you don’t want to sell your bitcoin, or you don’t own any bitcoin, but you do want to send money to someone (or some business) you can use cash to do this with a Coinsource Bitcoin ATM in 4 easy steps:

  1. Create an account with Coinsource, if you don’t already have one, and log in.
  2. Locate the nearest Coinsource Bitcoin ATM
  3. Insert cash into the Bitcoin ATM
  4. Enter the Recipient’s Bitcoin wallet address

The recipient receives the equivalent amount of Bitcoin into their wallet, which they can then convert to cash.

COMING SOON: Coinsource Bitcoin ATMs Will Have Full Remittance Service

Coinsource recently announced a partnership with Dai stablecoin to upgrade all of their nationwide Bitcoin ATM machines in preparation for adding remittance services. This new functionality will allow users to convert cryptocurrency to stablecoin, or cash to stablecoin, and pay bills or send payments to individuals, using a Coinsource crypto ATM. This is additional functionality as it is already possible to use cash buy and sell bitcoin, and send bitcoin to any recipient using Coinsource bitcoin ATMs. Read more about it here.

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