On a pilot basis, the new service is currently available for the bank’s employees, enabling them to make fund transfers of between £10 and £10,000.
Santander said: "The long wait for international payments to be processed is over, funds will appear in the recipients account the next working day."
Upon downloading the app, users have to enter their profile details to start making payments. The app uses Apple Pay where users can confirm payments securely using Touch ID.
Currently, the app allows payments in euro to 21 countries but the fund transfers to the US are permitted only in US dollars.
The blockchain technology introduced in the app is provided by Ripple, a firm which is also funded by Santander InnoVentures.
Santander customer and innovation head Sigga Sigurdardottir said: "The need for finance has evolved from providing a physical Pound in your pocket or card in your purse, where you pay at a till, to being seamlessly integrated into a new, always on, connected lifestyle.
"At Santander we work hard to ensure our banking is simple, personal and fair and believe new Blockchain technology will play a transformational role in the way we achieve our goals and better serve our customers, adding value by creating more choice and convenience."
However, the lender did not give the exact date of the launch for its customers.
Santander UK spokesperson Andy Smith told CoinDesk that the bank is planning to introduce the app before the end of 2016.
Smith said: "We think it’s most likely this year, it’s not a 2017 thing."
Ripple chief executive officer said: "Ripple is redefining the way that value moves around the world, and today we’re already enabling real-time, affordable international settlement between banks who have adopted our solutions.
"As an early adopter and pioneer in the banking industry, Santander is the first bank in the world to transfer real funds externally. In doing so, they are creating a new, exemplary standard of service."
Image: A branch of Santander in Cardiff, UK. Photo courtesy of peter clayton/Wikipedia.
