Travel agencies and other businesses with an international client and user base are faced with having to accept client payments in multiple currencies and payout – often in a different currency – their suppliers. This costs them time and money and is a highly inefficient system.
Currency conversion is costly – the rate quoted by a bank or available from a high-street currency dealer is often very different to the rate provided on the evening news or local high street currency exchange points.
It is also very time-consuming to process international payments through traditional means, often resulting in several days clearing time from transfer to receipt.
For example: if a travel agency in Singapore received a booking from a client in the US for a holiday in Europe, that agency would need to receive a USD payment from the traveller and pay EUR to the hotel in Europe. This payment process, using existing banking systems is time-consuming and expensive.
Using the Kinesis Blockchain Network (KBN), a US traveller could pay a European business in Kinesis currencies for a flight, hotel or experience. The business could then sell the received KAU for EUR on the Kinesis Exchange, or hold the KAU for other uses, such as spending on the Kinesis debit card.
This transfer is done outside of the banking system, the value of the transaction is based on the price of physical gold – not on an exchange rate skewed heavily in favour of an international remittance provider or bank, the only fee charged for the transfer is 0.45%, and the transaction is completed almost instantly.