According to the Australian Business Review (ABR) the firm, DigitalX has just announced it has partnered with the Latin American telco giant Telefónica. DigitalX is an ASX-listed company developing the blockchain-based AirPocket app, an SMS-enabled application that aims to be the “Uber” of global money transfer.
Telefonica Deal Boosts ‘Uber of Remittance’
The application AirPocket is a mobile application that enables users with a smartphone to act as a “small cash float that extends the geographic reach of the money transfer network beyond retail-location services such as Western Union and MoneyGram.”
DigitalX believes its AirPocket app will be a disruptive force within financial markets especially in certain countries positioned in Latin America. The company calls its newly formed alliance with Telefónica a strategic partnership that will allow the firm to expand within the region.
DigitalX founder, Zhenya Tsvetnenko, says the deal is just the beginning of significant partnership announcements. Tsvetnenko believes this particular deal is monumental to the firm and will move them in a forward direction. He tells ABR:
The Telefónica partnership is transformational for our company, and I am not only talking from a revenue opportunity perspective. The fact is, this deal puts our emerging technology company on the global stage and cements our position as a first mover in providing a blockchain application of commercial scale.
AirPocket allows anyone to convert physical cash into digital cash, which then allows them to pay bills, shop online, or trade for the local currency. The network allows anyone to become an “AirAgent” by helping others transfer cash. The application says it leverages the same blockchain technology used by its parent company DigitalX. The company claims the software provides better security, it is incorruptible, and acts as a “decentralized storage and verification system.”
DigitalX will initially focus in on Latin America as Tsvetnenko explains that the forecast in the region shows smartphone use will increase by “58% to 245.6 million in 2019.” Additionally, there is a vast population of Latin Americans working in the U.S. who need to transfer cash to their families. Tsvetnenko says a lot of people stand to benefit from its powerful software and its collaboration with Telefónica He explains:
The agreement shows that AirPocket isn’t only well-suited for transferring cash between end users but is also an ideal way for transferring digital funds and paying bills in a secure and timely fashion.
These kinds of deals should produce a steady revenue for the company as DigitalX will be taking in an 11% commission on all transactions. The firm hopes to capture a broad audience within the Latin American continent and hopes AirPocket will be the platform to do so. DigitalX says the applications low infrastructure expenses will result in 50% lower cost than the traditional providers in the market. “Efficient use of low-cost SMS technology means accessibility for any user that owns a phone,” DigitalX says in its official slide presentation.
What do you think about DigitalX and AirPocket? Let us know in the comments below.
Images courtesy of DigitalX and AirPocket websites