Rethinking Cross-Border Payments

Imagine a migrant worker anywhere in the world, wanting to remit money to their family back home, or parents sending tuition money cross-border to their children. For these small to medium value transfers, the cost is unbearably high. Due to proprietary back-end systems, and complex regulatory compliance, the existing cross-border transfer services are an appalling nuisance: expensive, slow, opaque with poor user experience.

Building a global network

In an ideal scenario, having one middleman in the transaction flow structure, acting as an instrument of cross-border payments, with high efficiency at a low cost, would solve most of today’s money-transfer bottlenecks. However, for this to be remotely possible, it would require:

  • Vast amount of capital support for the middleman to scale
  • Thorough Know Your Customer (KYC) checks
  • Compliance with regulatory requirements across different jurisdictions

In return, the end-user always has to bear the cost, either through transaction fees or time. The biggest pain point of the existing cross-border financial system is the lack of efficient ways to conduct small amounts of money transfers or micropayments, without a significant percentage of cost. Should any country be unable to service value transactions of $200 or lower, their economy will likely come to a halt.

When rethinking how to remove frictions among cross-border payment stakeholders, OKLink has come up with an answer. Our solution entails breaking the one single intermediary into the following components:

  • Licensed Sender – company that offers money-transfer service for senders
  • Settlement Network – a global seamless settlement platform based on blockchain technology
  • Payout – company that processes the money to recipients via bank account, cash pick-up or mobile wallet

The polar ends are SMEs including banks, fintech, traditional, and innovative remittance companies. These financial service providers can leverage either their marketing skills to find new customers, or their existing banking/cash pickup networks locally. Once connected to the OKLink network, they can achieve a global reach and gain access to a high volume of transactions.

Network nodes

Our money transfer network enables small and medium financial service providers to compete with traditional financial institutions that utilize legacy networks, or local traditional clearing networks to transfer funds. Our network nodes are empowered by continuing to focus on their local markets, while our network helps bring additional business with only nominal API-based integrations.

Licensed Sender nodes are provided with a wide array of payout countries and options with transparent pricing. Both pre-funding, and counter party risk issues are undertaken by the network. Payout nodes receive high-volume of transaction orders from all over the world. We are responsible for your business expansion, so you could can focus solely on optimizing your service to the end-users.

Underlying technology

OKLink is built on top of an open blockchain protocol, allowing network nodes to engage in a secure, trustless, and cost-effective transactions. Features like instant settlement, and real-time transactions between our network nodes are made possible by our implementation of blockchain technology and matching algorithms. We removed global complexity, and enabled nodes to focus solely on their users and local markets. This reduces barriers to entry for our network, as it remains open to all participants.

Jovan is currently responsible for strategic initiatives, partnerships, and business development at OKLink, a global blockchain settlement network helping forward-thinking businesses make cross-border money transfers. We are growing rapidly with a settlement network being connected globally with over 150 licensed nodes from more than 40 countries. To become a partner in our network, contact us at partner@oklink.com

OKLink expands to South America

South America

We are excited to announce our expansion to South America. Using OKLink, businesses can now send money to Argentina, Brazil, Chile, and Peru at a greater speed and lower cost than any other alternative.

Thanks to our strong local partners in the region, sending money to and from these countries is available for both C2C and B2B transactions.

The total payout fees are calculated at a mid-market rate with no hidden charges. Payout fee for Argentina and Chile is 0.85%, Peru 0.6%, and Brazil 1%.

Supported banks include:

Argentina: Banco Columbia, Banco Comafi, Banco Credicoop, Banco Galicia, Banco Hipotecario, Banco Industrial, Banco Macro, Banco Naciоn, Banco Patagonia, Banco Provincia, Banco Santander Rio, Banco Supervielle, BBVA Banco Frances

Brazil: Itaú, Bradesco, Banco do Brasil, Santander, Caixa Econômica Federal, Sicoob, Intermedium, Neon, Ecobank

Peru: BBVA Continental, Banco de Crédito – BCP, Interbank, Scotiabank

Chile: Santander-Chile, Banco de Chile, Banco Estado, Banco de Crédito e Inversiones (BCI), Banco Itaú Chile, BBVA, Scotiabank Chile

Stay tuned for more corridor updates to follow soon.

Results & Achievements in 2017

Poster

When we look back at 2017, we have reasons to be proud and optimistic about the future of our network. The past year has been exciting and dynamic, both for OKLink and the entire cross-border payment ecosystem.

Together, we achieved significant results and look forward to the challenges in the coming year. We hope that our open financial infrastructure will continue to help businesses send money more seamlessly, faster, and cheaper than before.

We thank all of our partners for making 2017 such a memorable one, and look forward to our continuous collaboration in the future.

OKLink admitted into Abu Dhabi Global Market Sandbox

The Abu Dhabi Global Market (ADGM) announced yesterday that OKLink has been accepted into the second cohort of its Regulatory Laboratory (RegLab).

Abu Dhabi Global Market is the international financial centre located in Abu Dhabi and the RegLab is a specially-tailored regulatory framework which provides a controlled environment for FinTech participants like OKLink to test innovativeFinTech solutions.

OKLink is a cross-border payments platform provider that utilizes blockchain to provide services in over 40 countries today. OKLink’s objective under the RegLab is to expand our payments solutions to empower Middle Eastern businesses, develop Abu Dhabi as a regional hub, and to be fully licensed under the ADGM financial regulation by the end of testing period.

Jason Lau, OKLink’s Vice President, says: “We are excited to join the ADGM Fintech RegLab as we continue our mission of improving cross-border payments for all. OKLink strives to provide its partners with safe and effective low-value payment solutions, and the ADGM Fintech RegLab’s forward-thinking regulatory framework will allow us to continue to prove out our innovative blockchain based network. We are thankful for the RegLab’s professionalism, and we look forward to promoting and support the RegLab innovative initiative.”

OKLink’s Chief Risk Officer & Head of Government Relations Tim Byun stated from the 2017 FINTECH ABU DHABI Summit that OKLink applied to the ADGM’s RegLab to grow OKLink’s presence in the Middle East with the support of a healthy pro-regulatory environment. More specifically, we believe the exciting fintech landscape of the Middle East will be a promising expansion opportunity and complement OKLink’s strong Asia presence.

For more details, please refer to the ADGM’s official release here.

October 23rd 2017: Link to official press release updated.