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If you’ve ever sent money internationally, you already know the process can be complicated, expensive, and slow. The Universal Money Address (UMA) standard, developed by Lightspark, offers a simpler and more affordable alternative. Instead of relying on long account numbers, routing codes, and multiple intermediaries, UMA gives users a short, easy-to-remember address for money. That single address can be to send and receive funds across countries, currencies, and platforms — often almost instantly and at a lower cost.
Below is a closer look at what UMA is, how it works, why it matters, and how you can get one.
Key Points
- A Universal Money Address (UMA) is a simple, email-like identifier that enables fast, low-cost international money transfers.
- UMA leverages the Bitcoin Lightning Network to facilitate near-instantaneous cross-border payments.
- It allows users to send money between different banks, digital wallets, and crypto exchanges worldwide.
- It is currency-agnostic, meaning a sender can pay in USD and the recipient automatically receives funds in their local currency.
- To get a UMA, you need to sign up through a compatible financial service (bank, crypto exchange, or wallet).
Understanding UMA
A Universal Money Address (UMA) works much like an email address for money. It’s a short, unique identifier that allows you to send or receive any currency — including traditional fiat currencies (like the U.S. dollar or euro) and cryptocurrencies — across borders in a fast and cost-efficient way.
When you make an international money transfer using UMA, you don’t necessarily need to know which bank, wallet, or exchange someone uses, which currency they prefer, or even which country they are in. You also don’t need to decide whether the transfer should run on traditional banking rails or blockchain infrastructure. All of that complexity is handled behind the scenes. From the user’s perspective, you simply send money to a UMA address.
Although UMA-enabled transfers haven’t replaced traditional international payment methods, a growing number of banks, digital wallets, crypto exchanges, and financial platforms are adding the standard to offer real-time, low-cost global payments.
UMA Address Format
UMA addresses are intentionally designed to be simple and easy to remember. The format closely resembles an email address, with one key difference — it begins with a dollar sign.
- UMA Format: [email protected]
- Example: [email protected]
This familiar structure makes UMA addresses easy to share, easy to recognize, and may be less prone to human error than when using lengthy bank instructions or long alphanumeric cryptocurrency wallet addresses.
Terminology Breakdown
To fully understand UMA, it helps to clarify some commonly used terms:
- UMA address: A unique identifier that lets you send and receive money globally — whether in fiat currency or crypto — quickly and at low cost. It works by connecting different financial institutions and applications through a shared network.
- Handle: Another term for your UMA. This is the payment handle that identifies you as the sender or recipient. When linked to a bank account account, it may look like this: [email protected].
- Domain: The service provider that issues and manages that UMA address, such as a bank, digital wallet, or exchange.
- $ sign: The dollar sign signals that the address is used for money, not email or messaging, and clearly distinguishes UMA addresses from other identifiers.
How Does UMA Work?
UMA is an open-source protocol that enables real-time, low-cost payments across borders. It allows different financial apps, banks, wallets, and exchanges to communicate with one another and move money efficiently, regardless of geography or currency.
To send or receive funds using UMA, both parties simply need to have a Universal Money Address. Transfers are typically completed in seconds. If the person you want to pay doesn’t yet have a UMA, many platforms allow you to send an invitation link that helps them find a UMA-enabled bank, wallet, or exchange in their country so they can create one.
Powered by the Lightning Network
UMA is built on top of the Bitcoin Lightning Network, a second-layer (Layer 2) framework designed to process transactions faster and more cheaply than the main Bitcoin blockchain (Layer 1).
When you initiate a UMA transfer, the system temporarily converts funds (for example, U.S. dollars) to Bitcoin and sends the Bitcoin across the Lightning Network. The Bitcoin is then instantly converted into the recipient’s local currency and delivered directly into their account or wallet.
Importantly, users do not need to understand Bitcoin or Lightning to use UMA. All the underlying technology operates invisibly in the background.
Currency Conversion (Fiat-to-Fiat)
UMA is currency‑agnostic, meaning the sender can pay in one fiat currency while the recipient receives another. For example:
- A sender pays in U.S. dollars
- The recipient receives Mexican pesos
- The conversion happens automatically at the receiving provider
This seamless fiat‑to‑fiat experience removes much of the friction traditionally associated with international payments. UMA automatically handles currency conversion so recipients receive their preferred currency quickly and affordably.
In addition, UMA can support these transfers:
- Crypto-to-crypto
- Crypto-to-fiat
- Fiat-to-crypto
Send cash in a flash with worldwide money transfers.
Is UMA safe?
The Universal Money Address (UMA) standard is designed with a multi-layered approach to security and compliance.
First, UMA integrates with existing regulatory frameworks, allowing participating banks, wallets, and exchanges to apply their own Know Your Customer (KYC) and Anti-Money Laundering (AML) standards. This helps ensure that transactions adhere to local laws.
Second, the system uses end-to-end encrypted communication when exchanging payment information between the sender’s and recipient’s providers.
Third, by leveraging the Lightning Network, UMA transactions benefit from the security inherent in Bitcoin’s blockchain technology, even though the users themselves are dealing with fiat or other currencies.
Recommended: Tips for Safe International Money Transfers
Key Benefits of UMA
UMA offers several advantages over traditional international transfer methods. Here are some to consider:
Security & Compliance
UMA integrates with existing compliance frameworks at banks, crypto exchanges, and digital wallets. This allows providers to enforce regulatory requirements such as Know Your Customer (KYC) rules and Anti-Money Laundering (AML) laws, where applicable.
In addition, UMA uses encrypted communication between participating services, along with multiple layers of authentication, to help protect sensitive financial data.
True Interoperability
UMA is designed to be interoperable, meaning it works across financial institutions and platforms. Anyone with a UMA can send money to anyone else who has a UMA, regardless of where they bank, which wallet app they use, or which exchange they prefer. All that’s needed is for both parties to have a UMA-enabled account.
24/7 Availability & Speed
Traditional cross-border transfers often pass through multiple intermediary banks, each adding delays and operating only during local business hours. Time-zone differences, weekends, and holidays can further slow payments.
UMA‑based transfers, by contrast, operate 24 hours a day, seven days a week. They aren’t constrained by banking cut‑off times and often settle within seconds.
For freelancers, remote workers, global businesses, and families sending remittances, this speed can make a meaningful difference.
Low Cost
International wire and remittance services frequently charge high upfront fees along with hidden currency-exchange markups.
UMA reduces these costs by relying on Lightning Network infrastructure and minimizing the number of intermediaries involved. While fees vary by provider, they are typically far lower than those associated with traditional cross‑border payments.
Lower costs mean that more of the money sent actually reaches the recipient, which can be a critical benefit for individuals and families who rely on remittances.
How to Get a Universal Money Address (UMA)
Getting a UMA is generally straightforward. Here are the general steps involved:
- Choose a participating provider: Start by signing up with a wallet, exchange, or financial institution that supports UMA. If your bank doesn’t offer UMA but supports Real-Time Payments (RTP), you may be able to create your UMA through services like UMA.me and link it to your existing bank account.
- Request a unique handle. Once your account is open, request a unique UMA handle. This option is usually found in the account or payment settings. Follow the prompts to claim your address.
- Set a default currency: Select the currency you prefer to send and receive payments in. This can often be changed later.
- Complete a transaction: Once you set up your UMA, you’ll be able to send money to a friend or family member who will receive the funds in their preferred currency directly in their UMA-enabled bank account or wallet.
While the exact process varies by provider, a typical UMA transaction may look like this:
- Open your banking or wallet app.
- Choose the Payment feature.
- Choose a recipient from your recent contacts, or add a new one.
- When prompted for the recipient’s location, select Outside the U.S.
- Enter the recipient’s UMA (or invite them to create one if they don’t already have it).
- Enter the amount you want to send.
- Add a reason for the payment.
- Review the transaction details, including fees.
- Tap Send.
Behind the scenes:
- Participating apps and platforms exchange payment information
- The currency conversion is handled automatically
- The payment settles almost instantly
From the user’s perspective, the experience is typically fast, simple, and intuitive.
The Current Ecosystem
UMA is still in its early stages, but the ecosystem continues to grow. Multiple wallets and financial platforms have begun supporting the standard, and adoption is expanding across regions. As of December 2025, UMA is available in over 45 countries.
Because UMA is open‑source, any compliant provider can integrate it into their systems. This openness increases the likelihood of broader adoption for use cases such as cross‑border payments, family remittances, freelance and remote work payments, and international commerce.
The Takeaway
A Universal Money Address (UMA) is a simple, email-like identifier that makes sending and receiving money internationally faster, cheaper, and easier, regardless of the currency or platform used by the sender or recipient. By leveraging the Bitcoin Lightning Network behind the scenes, UMA offers true interoperability across banks, wallets, and exchanges, helping to eliminate the complexity and high fees traditionally associated with cross-border payments. As the network expands, UMA offers a path toward a more efficient and globally connected financial system.
SoFi Checking and Savings members can now send money to 30+ countries, including Mexico, India, Brazil, and more. Plus, make three international money transfers by 3/31/26 to earn $30 in rewards points.
SoFi worldwide money transfers are a fast, affordable, and simple way to transfer money to loved ones abroad — directly from the SoFi app.
FAQ
Do I need to own Bitcoin to use UMA?
No. Universal Money Address (UMA) uses the Bitcoin Lightning Network for its infrastructure, but the user experience is designed to be currency-agnostic. When you send money in a fiat currency (like USD), the UMA protocol temporarily converts it to Bitcoin, sends it across the network, and instantly converts it back into the recipient’s preferred currency. All of this happens in the background, and the sender and receiver only see and deal with their local or preferred currency.
Who owns the UMA standard?
The Universal Money Address (UMA) standard is an open-source protocol originally developed and released by the company Lightspark, which focuses on building infrastructure for the Lightning Network. It’s currently available under the Apache 2.0 license. Because the protocol is open-source, it is not “owned” by any single entity. Instead, it is a public standard that any compliant bank, wallet, or exchange can adopt and integrate into their payment systems.
How is a UMA different from a Lightning Address?
A Lightning Address is a simple identifier (like [email protected]) for sending Bitcoin over the Bitcoin Lightning Network. A Universal Money Address (UMA) is an extension of that concept. It adds a $ sign in front of the address and introduces several key enhancements for broader financial use.
Can I use UMA for domestic payments too?
The primary focus of Universal Money Address (UMA) is on cross-border payments, simplifying and lowering the cost of international transfers. However, because the protocol is open-source and built on the Lightning Network, it has the technical capability to support domestic transfers as well. Whether your specific provider allows domestic payments using your UMA will depend on their service offerings.
What are the transaction fees?
The transaction fees for a Universal Money Address (UMA) transfer are typically much lower than traditional international wire or remittance services because UMA leverages the efficient Bitcoin Lightning Network and minimizes intermediaries.
The specific fee amount is not standardized and will vary depending on the wallet, bank, or exchange you use as your UMA provider. Providers may charge a small processing fee along with a network fee, but these costs are generally designed to be highly competitive and transparent.
About the author
Rebecca Lake
Rebecca Lake has been a finance writer for nearly a decade, specializing in personal finance, investing, and small business. She is a contributor at Forbes Advisor, SmartAsset, Investopedia, The Balance, MyBankTracker, MoneyRates and CreditCards.com. Read full bio.
Photo credit: iStock/PeopleImages
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