DTransfer goes live with instant B2B payments between Europe and Africa

22 September 2020

We are glad to introduce DTransfer, an instant cross-border payment solution for businesses. Facilitating first client payments marks the launch of our money transfer platform. DTransfer empowers global business to operate more efficiently by leveraging blockchain technology to transfer funds – fast, cheap and transparently.

Digital, direct and decentralized payments for instant transfers

DTransfer aims to revolutionize the global payment industry, paving the way for a radically modernized international banking system. Utilizing blockchain technology and the Stellar network in particular to connect instant banking networks, DTransfer is able to facilitate instant cross-border payments for businesses. DTransfer establishes a new standard for moving money around the globe with a focus on speed, cost efficiency and transparency.

We have successfully connected our instant payment platform to banking networks in Europe, US, Mexico, Nigeria and Tanzania and are in the process of connecting to further local bank networks, mainly in Europe, Asia, Africa and the Americas.

Client highlight: UHURU Microfinance

In the early stages of testing DTransfer during our closed alpha we received very positive client feedback. The lending platform UHURU Microfinance is among the first businesses to use our money transfer service.

Andreas Reiffenstein, founder and CEO of UHURU Microfinance Consulting GmbH explains:

“We encounter constant pain points when working with traditional banks to send money to Tanzania. We are waiting days for transfers to complete, high transaction fees increase our operating costs and the offered exchange rate between Euro and Tanzanian shilling is far from competitive. Money transfers resemble pretty much a black box for us, as we have no choice or influence over the outcome.”
Andreas Reiffenstein (bottom right) discussing UHURU Microfinance

UHURU Microfinance is working to build a more inclusive financial system in Africa by connecting international investors and local microfinance providers. The rapidly growing Sub-Saharan African economy lacks the necessary financial relationships and infrastructure to properly leverage the progress. In order to maintain and build its empowering position in supporting the Sub-Saharan economy, UHURU Microfinance has integrated DTransfer to help facilitate international payments.

Reiffenstein comments:

“We have recently signed up with DTransfer and judging from the first transactions we've made, the results are very promising. We see the transfer fees and currency exchange rate prior to initiating the transfer, which adds a great level of transparency and fairness. We now enjoy the same currency exchange rates as big banks do for inter-bank transfers. In addition to that, transfer money was credited in Tanzania already a few minutes after hitting the send button.”

The DTransfer advantage

DTransfer’s initial Beta service offers some robust features that will continue to evolve as our solution grows. All features aim to contribute to our main advantages: speed, cost, and transparency. These features include:

  • Currency exchange: Included in each transaction and decoupled from the banking partners, as it happens independently on the blockchain by exchanging stable coins.
  • Tracking: Follow your transfers like a package delivery. Always know in real-time where your money is located and who is processing it.
  • Safe storage: Our business clients keep sole custody over account balances kept in their DTransfer vault. Not even DTransfer can move their funds without approval by the client!
  • Compliance network: With our global multilateral compliance partnership kicked-off, banks and businesses that comply with international regulations and the quality standards of DTransfer are eligible for joining the global DTransfer compliance network and share Know Your Customer data. This means DTransfer clients will be able to easily sign up to other financial services with a few simple clicks.
  • Increased security: Compared to the traditional correspondent banking model, DTransfer cross-border transactions involve fewer trusted parties. This results in higher security and fault tolerance. The underlying Stellar blockchain network has proven extremely reliable by securely storing and transacting assets worth billions of dollars. The Stellar ledger software runs on hundreds of independent servers distributed around the globe, and its open source code receives continuous audits and updates by various stakeholders and users.

Money transfer meets Decentralized Finance

As DTransfer begins to establish itself as a viable cross-border payment platform, we continue to push forward in order to improve usability, security and overall user experience, as well as adding innovative features.

Future iterations will introduce interest payments on balances held with DTransfer, in contrast to banks which pay little to no interest or even charge fees for holding balances under certain conditions.

Additionally, we are aiming to support foreign currency exchange for our transfer by using Decentralized Finance (DeFi) deposits, as they incentivize providing liquidity required by high-volume decentralized currency exchange. DTransfer will also tap into the liquidity on other blockchains besides Stellar, such as the Ethereum network, by building trustless connections between blockchains.

Just as blockchain-enabled DeFi allows billions of dollars to be moved into new forms of investments, decentralized international payment systems allow money to move more fluidly. Already in 2015, a McKinsey study on global payments stated:

“To maintain their strong footprint in cross-border payments, banks need to rapidly move away from the existing correspondent bank model, which is burdened with customer pain points. They must think broadly and strategically about the future of cross-border payments—and do so soon, because the industry is already on the move.”

Connect with us

We are on the move! Check out our brand new website, follow our Twitter account @DTransferHQ for latest updates and join our transfer network by getting in touch.