Hong Kong-based RedotPay is a cryptocurrency payment fintech that serves more than 4 million users, and is partnering with Stablecoin Issuer Circle’s new payment network (CPN) to remove headaches from cross-border transactions in Brazil.
The CPN collaboration means RedotPay users can send cryptocurrency directly to their Brazilian bank accounts, and the funds will be automatically converted to Brazilian Rial (BRL) upon arrival, the company said Monday.
Stubcoins for payments are rising rapidly, with varying estimates of the potential market size for blockchain rails and dollar-covered tokens. Circle, the issuer of USDC, the second largest Stablecoin, introduced CPN in April, gaining some of its cross-border payment and remittance space.
RedotPay, which recently raised a $40 million funding round, says it is on a mission to make global payments more accessible to bankers by reducing transaction costs and eliminating the traditional 1-5 business day payment period associated with normal international relocations.
RedotPay tackles two major issues that have historically hindered cross-border payments in emerging markets, according to Michael Gao, CEO and co-founder of RedotPay.
“For users, this process was slow and expensive with high foreign exchange rates and handling fees,” Gao said in a statement. “The success rate of transactions is also inconsistent. For payment service providers (PSPs), capital is often trapped in ready-made accounts with different PSPs or banks in multiple countries.”
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