(Edit: I have made a presentation to try more clearly to communicate the idea).
So me and my wife support some of our family in Philippines for education costs and it occurred to me remittance as we know it today perhaps could be done better.
First some basic facts:
-Globally remittance costs are around 6-7% of sent amount according to this report
-In Philippines alone statistics (latest estimate from 2013) suggested some 4,3 million permanent offshore workers and some 4.3 million temporary (https://www.cfo.gov.ph/downloads/statistics/stock-estimates.html).
- Transaction costs with say visa range from around 1-2% for merchants usually (see for example https://www.creditdonkey.com/credit-card-processing-fees.html)
It also occurs to me that the whole system is based on a time when not everyone had mobile phones and a mobile network and you had to have a centralized network (for example visa) to process transactions. It also occurs to me that the solutions so far mostly has focused on the user alone for phone based payments and not so much on also the other side of the equation the merchant to help him/her as best as possible as well. Finally the whole system is also very much affected by anti laundry laws and also laws to give somewhat controlled access to being a banking service (banking lisences).
An idea I am thinking a bit about would instead of making transactions between a family member to another instead use the internet age to allow the family member to himself do transactions FOR others but BY himself thus not doing a transfer from person to person and sidesteping any anti-laundry & banking licenses requirements. To do this you would only need a family member abroad with a bank account and mobile and the family members without a banking card / no abroad work sends request over the app that the family member will spend money on any given transaction. So money does not change hand from family member a to b but only from member A to the Merchant and the service provider only provides the service for this much like how Uber only provides a service for cutting a centralized taxi service and same with cutting the banking requirements (much as cutting a taxi lisence).
Now that is the start portion of this idea. To facilitate this we need a dAPP that allows user to connect with family members and send request. Transactions process with a coin under Cardano for example a FAM (family transaction) token with ADA as fuel. We can then cut the 6-7% fees (I have seen them as low as 1,5% + flat fee) because we have no banking license cost and the transaction costs are miniscule and fixed so we can easily out compete at say a flat 1% rate. There are many ways to process this transaction. We can liquidate to cash (would take some of the margin) create a stable coin (while not a banking lisence we need to create a guarantee so a fixed fee) or by trust with issuing a FAM token per usd value possibly.) The general idea is to let the users have a founding on the system that is paid for by his banking account (like paypal) but with token. The token or bank money does not change hand from family member a to b but from family member A to merchant every time family member b request he does a purchases through the app and that he confirms. We need 0% transaction cost as the user carries the burden of cost (sim/mobile internet msg) for this and we can have a flat 1% conversion cost for transferring founds with a very high profit margin (transaction costs are like what 0.2$? + any fixed fee for all transaction for a stable coin guarantee + our network costs that should be minimal given that the merchant/users are processing and storing transactions)
The next step is the merchant side of things. In Philippines (as an example) there are some estimated 800000 merchants in what is called Sari-Sari stores having some 13% of the GNP (https://en.wikipedia.org/wiki/Sari-sari_store). Now these stores are usually makeshift with book keeping on pages or mobiles and they serve the economy because they run local tabs and is available in your local neighborhood cutting transportation costs. So how could we assist these merchants and thus create incentive for growth of our own system while also stimulating the Philippine economy? A few steps:
We put most of our profit margin back to the merchant with how the dAPP will work and it will create a self growing system. our dAPP needs to be able to make local QCODES that can be printed on a regular piece of paper and cut out so merchants easily can go to a local printing senter and print these out for a minimal cost per goods (0.001$ range or whatnot) while using a camera to connect the QCODE (unique and stored on ledger) to a said merchant goods and add info on it on the mobile app.
Now we give merchant a flat fee for using our transaction both for a local lending or cash point say 0.5% of our 1% margin. We give a bonus of 0.25% if using ADA (or perhaps a stablecoin FAM) as the currency instead of converting to cash. and we are left with a 0.25% margin. Now granted if 8 million offshore workers have 2 family members doing 1 transaction a week for 100$ that is still 216 million usd per year just showing some potential of this system.
Then we also let the merchants connect with each other and let them have statistics of goods sold. So as you can have a group of family members you can have a group of merchants. Then we let the merchant connect with the family user so that with either an sms code or a bluetooth handshake or some exchange the phone dapp of merchant know the history of user and could even assist with keeping tabs of local lending of merchant. It could even assist in doing tax report for the merchant. So we give the merchant a bonus to his margin and ease his burdens all through the phone he/she already have. That is incentive to adopt our system and is a powerful thing.
So overall what happens? Instead of bank/transfer agents pocketing say 5% of transfer fees (just in US some 12 billion https://www.pewresearch.org/global/interactives/remittance-flows-by-country/ or say 86,4 billion if 100$ for 8 million workers by 2 family members a week) we can put some 3,5 billion back to the user in reduced cost (users who are usually poor and cant even afford an own bank account and now suddenly have more money and we can lift more people out of poverty) and give merchants some 648 million in bonus payments while reducing margin costs by letting dAPP help with managing goods and tabs. Same goes for anyone actually using bank cards/visa we could cut the 1-2% transaction costs. We achieve this while not having added costs of a banking lisence (hopefully need to research the legal aspect more but I believe this is correct as we are only facilitating a service for a family member abroad to a merchant in a said country and I have yet to see a law in any country denying a user to make purchases abroad) while connecting more customers to merchants in a better way that helps both the customer AND the merchant.
So anyways I do not have time to this idea myself alone but I would like to hear others input if this is a bad idea or not and if someone wants to go for it why not I will support and perhaps I could even be part of a team working towards this? And yes I am aware of cryptocurrency used to TRANSFER money from a to person B and this as far as I can see has a 1-2% currency fluctuation cost and a flat fee so we can out compete this. Also I think letting the family member abroad spend money on his bank account through Cardano is superior to a transfer model both legally and efficiency wise.