ABRA – Peer to Peer Money Transfer App
On 30th June 2016, ABRA, a company formed in Saratoga, CA and headquartered in Philippines, launched their blockchain technology based smartphone app in US. The app is available on iPhone and Android based smartphones in US. ABRA had earlier launched their app in Philippines last year. They were the winners of Launch Festival 2015 held in San Francisco. It is an app which enable you to send and receive money across their network (they plan to spread their network across the world in coming years) without any bank or financial institution or government’s intervention. They did their initial test marketing in Philippines and have now entered US market. They plan to reach 70 more countries in the years to come eventually networking the whole world when anyone could send money across the world without any intervention of any government or institution.
“The U.S. is the largest single source of cross border money transfers in the world, so bringing Abra to the U.S. market is an important step toward realizing our global vision,” said Bill Barhydt, founder and CEO of Abra. “The same way messaging apps like WhatsApp and Skype have made it easier to communicate with people overseas, Abra will make it just as easy to transact with people around the world. Our vision is to make it possible for the first time to send money instantly and securely between any two smartphones with or without a bank account — regardless of location, currency, or mobile phone operator.”
What exactly is ABRA?
ABRA – A Better Remittance App. It is world’s first peer to peer money transfer network wherein a consumer may store money in his or her mobile, transfer it to anyone in the world who has an Abra app without any intervention of intermediate bank, financial institution or even government of any country. As such the transaction becomes absolutely private, secured and instantaneous round the globe. The charges to transfer these funds are also minimal, several times lesser than conventional system of cross border transactions through banks or western union.
Technology behind ABRA
ABRA works on Bitcoin Blockchain Technology. Technically speaking, ABRA has a digital wallet for you where you can directly transfer money from your bank account. Once in your digital wallet, you can transfer the money to any other mobile across the world having ABRA software. Here your money is first digitalised into Bitcoins and through Blockchain technology Bitcoins are transferred to any person across the world. Once transferred the bitcoins are again transferred into local currency and if the person so desires, he or she can have it in their bank account. See here below modus operandi of ABRA operation.
How ABRA works – through an example
Suppose person A wants to transfer some funds to person B, both in different countries having different local currencies. Both A and B needs to have ABRA app on their mobiles. Person A will search for a ABRA teller on his app just like we search for any Uber taxi nearby. An ABRA teller is any person or an exchange who has partnered with ABRA company for becoming their teller wherein he is capable of digitalising local currency or converting digital currency into local currency. Now person A finds a teller C nearby so he contacts C and asks him to convert X amount into digital currency. Teller C either meets A physically or asks A to send money through bank and in turn sends bitcoins of same value. C charges some small commission from A. Bitcoin is the digital currency. Once Bitoins of same value are stored in A’s mobile, A is able to transfer them through ABRA app to B. B gets notification that some money has come from A. B looks for an ABRA teller in his location. Finds a teller D. Communicates with D who takes the digital currency and give him local currency of same value. Of course D charges a small commission from B. This is how ABRA is able to transfer money from one person situation in one geographical location to another person in another location and both having different currencies.
Currency rate fluctuations: The value of Bitcoin fluctuates very much since it is very volatile. ABRA takes care of this fluctuation as it can guarantee the home currency value for the first 72 hours, making the transaction free of Bitcoin fluctuations in dollars or other local currencies.
ABRA needs to have lots of Tellers in its network which are required to make this app successful and user friendly. Untill and unless a person easily finds a teller around him, he will never be comfortable using this app. This will give rise to lots of business opportunities as it is launched in more and more countries. In fact the company cannot launch its app in a country until and unless it has sufficient Tellers in that country. Now they are on a look out for substantial tellers in each country.
A revolution has begun. ABRA is totally Bitcoin technology based, hence it will also boost the Bitcoin miners who get small transaction fees for verifying and documenting each Bitcoin transaction on Blockchain ledger.