Santander launched the first blockchain-based service for end consumers in Brazil.
The service, dubbed Santander One Pay FX, aims at significantly reducing the time involved in international transfers.
Currently, the timescales for International wires are two days on average, while the Santander product aims to deliver transfers within two hours. Depending on the receiving bank, transfers can even be made instantly.
To build the service, Santander used xCurrent, the enterprise software system used by California-based fintech Ripple to instantly settle cross-border payments with end-to-end tracking.
As well as Brazil, where the product launched yesterday (12), the service is available in Spain, United Kingdom and Poland and should be extended to other countries in the next few months. In this initial phase, customers will not pay tariffs to use the service .
Another differentiating factor of the blockchain-based offering is that the value that will be available in the account in the receiving end is informed at the moment of the transaction - something that until now, most Brazilian banks could not provide.
Initially, Santander One Pay FX will allow transfers in pounds sterling from Brazil to the United Kingdom, with limits equivalent to $3,000. By the end of the first half of 2018, customers will be able to wire euros to Spain and to other countries in the second half of the year.
The new Santander product will enable wires in dollars to the United States and transfers in reais to Brazil from 2019.