Adam Draper bets on Bitcoin in the Philippines with Palarin

Silicon Valley venture capitalist Adam Draper is spicing up the Bitcoin scene in the Philippines.

Palarin, among the latest batch of startups accelerated by Draper’s Boost VC, launches today, enabling users to remit money to the Philippines from overseas using Bitcoin and to do so more cheaply than conventional money transfer services.

Palarin converts Bitcoins to Philippine pesos and distributes remittances to recipients through a number of options. Like other Bitcoin remittance services, Palarin allows users to send even small amounts without paying hefty service fees.

Palarin co-founder Brian Gamido says they charge 1.5 to two percent of the transaction amount – “significantly lower” than what is charged by the banks or money wiring firms like Western Union.

“The percentage fee for the service covers the conversion of Bitcoin sent by remittance senders to Philippine peso and the distribution of Philippine peso funds to remittance recipients,” Gamido tells Tech in Asia.

Currently, modes of delivery include bank deposits or cash pick-ups at select pawnshops. “We will be expanding this distribution footprint in the near future,” says Gamido.

A half-trillion-dollar market

(L-R) Brayton Williams, Boost VC co-founder; Brian Gamido and Lester Forteza, Palarin co-founders; and Adam Draper.

Palarin was founded by Gamido, Lester Forteza, and Marciano Aguila, who carry with them years of experience in technology and financial services in the US. The trio set out on a mission to make low-cost remittances using Bitcoin a viable option for people, while still building a profitable business.

“Global remittances to developing countries, including the Philippines, are estimated to be US$516 billion by 2016. Remittances are typically sent by migrant workers. Our vision is to allow these individuals to send money back home cheaper,” says Gamido.

Palarin has a footprint in Silicon Valley and Manila. It built its technology in Silicon Valley by being a part of Draper’s Boost VC accelerator program, but it’s running business operations from Manila.

It will compete with other Bitcoin remittance services focusing on the Philippines, such as Rebit from Satoshi Citadel Industries and SendMoney from Coins.ph.