Pouch, the Philippines’ first lightning service provider, has teamed up with Strike, the global digital payment platform that operates on Bitcoin’s Lightning Network, to offer fast, secure, and affordable remittance payments from the US to the Philippines.
With this partnership, Pouch and Strike aim to make digital payments more efficient and accessible globally. Customers, including Filipino expatriates in the US, can now send US dollars to the Philippines, and have the funds received in Philippine pesos in a recipient’s bank account or mobile wallet.
Pouch was established in August 2021 by CEO Ethan Rose, who left his software engineering job in the US to pursue his mission of improving the process of sending money back to the Philippines. Thanks to its customer-focused approach to cross-border remittance services, Pouch has quickly gained popularity in the country. In 2022, Pouch paved the way for the widespread adoption of Bitcoin and the use of lightning wallets in Boracay, transforming the summer resort into a Bitcoin hub.
The Philippines is one of the world’s largest remittance markets, according to the World Bank. Remittances from overseas Filipino workers grew by 5.7% YoY to reach USD 2.64 billion in November 2022. Many Filipino families depend on remittances to cover their daily expenses, such as food, bills, education, and debt payments. However, transfer fees consume a significant portion of these funds, with the average cost of sending remittances to the Philippines at 4.57%, as per World Bank data.
The World Bank has set a goal under its Sustainable Development Goals to lower money transfer costs to 3% of total transaction value by 2030. Pouch strives to achieve this objective by providing faster, more convenient cross-border payments at the best exchange rates.
“The US to Philippines remittance market is one of the largest in the world, and until now, most Filipino-Americans have had limited options,” said Rose. “With Pouch’s partnership with Strike, we are transforming the way cross-border payments are made, giving people the power to easily send money to their loved ones back home. We are honored to play a role in building the world’s strongest payment network for global transactions.”
“Remittances are a broken system, and Strike offers a powerful solution for people to send money around the world almost instantly,” said Jack Mallers, Founder and CEO of Strike. “We’re thrilled to join forces with Pouch to enhance financial inclusion and bring fast, low-cost cross-border payments via the Lightning Network to the Philippines. Our technology enables us to improve the existing cross-border experience and reach those who were previously excluded by traditional payment methods.”
