Arf makes Instant Global Payouts and Settlements with a Few Lines of Code. They are making remittance flows increase by making use of the Stellar Network.

Arf expressed:  World changing stuff.  We’ve already reached 60 countries in instant payout coverage and started rolling out Arf Credit, our innovative instant working capital product, tailor-made for cross-border payment companies to completely eradicate prefunding.

If you’re a licensed financial institution (e.g., MSB, MTO, e-wallet, neobank, remittance company) don’t miss out and check us out.

Arf points to how Remittance flows are a very strong indicator of the overall economic health of low and middle-income countries.  Remittance contributes to a significant part of their financial inflows. Reportedly, there are nearly 800 million people dependent on remittances to sustain their livelihood living across the globe.  Thus, the importance of remittance is undebatable.

Remittance companies are mostly using the correspondent banking model, where one ‘correspondent’ bank will hold the deposits which are owned by other ‘respondent’ banks, eventually providing payment and other services to the respondents.

This model has been a very important component of the international payments industry, and it does not comply with the fast-paced nature of cross-border payments, global trade, and e-commerce.

The Medium article in this regard points to how in correspondent banking networks the settlement speed differs from 1 to 7 days.  It has also been noted that pre-funding creates more problems in the system as it requires high capital requirements, high FX exposure, and increased financial and treasury operations. Further cross border payments are dependent upon networks like SWIFT. In cases where the settlement cycles are long the need for pre-funding capital for the transaction is a major barrier.

Arf are facilitating a cutting-edge solution to solve the need for pre-funding in cross-border money transactions.  Arf brings in the opportunity for licensed money service businesses (MSBs) and international Money Transfer Operators (MTOs) from across the world to free themselves from the need to pre-fund high-capital requirements which are set to conveniently build cross-border payment corridors.

Arf makes it possible to leverage stable coins to provide for instant stable coin settlements across multiple channels, which consists of real-time transfer to bank accounts, e-wallets, and cash pickup points.  Arf also makes it possible for MSBs to build API-based cross-border financial operations and treasury management.

Arf are providing “global treasury accounts” denominated on USDC along with its cross-border instant settlement network to reduce the amount of money that will be required in prefunding.  With the global treasury account denominated with USDC, it will be possible for the “corridor partner” to enjoy reduced pre-funding requirements by 50 to 80%