To encourage digital payments and discourage the use of cash, Colombian fintech company Minka created the largest real-time interbank transfer infrastructure in the country and the fastest growing in Latin America. Through its platform it has processed more than 18 million online transactions, helping more than 2 million users.
Digital payments in Colombia are becoming more accepted every day, reflecting the collective efforts to reduce the use of cash, especially in the Fintech sector. They currently represent 54% of transactions nationwide and last year alone recorded 11,160 million transactions, of which 4,894 million were monetary. That is revealed by figures from the Banco de la República and the Superfinanciera, which also confirmed that in 2021 close to 11 million people carried out different banking transactions from their cell phones.
Despite these good indicators, cash continues to be the main preferred means of payment in the country with a share of 88%. According to the issuer, its use generates a series of ‘hidden social costs’, which include phenomena such as tax evasion and money laundering, in addition to the fact that it is a barrier to banking penetration and has a perception of insecurity that correlates with the culture of crime, which makes its use costly and unsafe for businesses and users in general.
If you want to find more details about Minka and to read the latest financial news in the world, download for free our companion app Born2Invest.
Minka’s proposal to reduce cash
To respond to this problem and encourage more people to access digital payments and reduce the use of paper money in their transactions, a Colombian fintech company created the largest technological infrastructure for interbank transfers in the country and the fastest growing in Latin America.
This is Minka, a company founded in 2018 that has an open network that allows organizations to publish balances and move balances immediately. The company, through its technological solutions, has improved the way people interact with money in Colombia and is now building an open network to publish balances in real-time and extend its functionalities and services globally.
Its network, explained Paola Sánchez, co-founder of the fintech company, “was designed to connect independent traditional systems using blockchain concepts and modern application programming interfaces (APIs) that help simplify complex money movements in real-time, securely, at no cost and using just a cell phone number to make digital payments and replace cash.”
Its goal is to serve the country’s unbanked population, which decreased by 8% during the pandemic, thanks in part to the growth in the use of financial applications.
Currently, the solution enabled by Minka, allows financial institutions, fintech companies, and clearing houses to have new products and functionalities such as immediate interbank transfers, mobile wallets, and massive online collection and dispersion, among other services, in just days and without having to develop their own infrastructure.
“We have processed around 18 million online transactions among more than 2 million users. Minka’s average monthly growth has been 25%; however, we project to increase this indicator by 5 percentage points by the end of 2022,” said Sánchez.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in VALORA ANALITIK, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [++ KuCoin Affiliate Program Review]
This week, we answer the two questions on everyone’s lips — What do SJWs and e/accs have in common? And...
BIPV Boom: By 2032, Building Integrated Photovoltaics Will Be Worth Over $143B
The next moves by the European Commission and the trend toward a real estate stock composed of Zero Emission Buildings...
French Fintech Company Qonto Launches SME Financing in Italy
Qonto is expanding its financial solutions for SMEs and professionals in Europe, launching the option for companies in Italy to...
Trusters and Leone Investments Finally Receive Approval Under EU Regulation
After almost a month under the new EU Regulation, two platforms, including the historic Trusters launched in 2018 and the...
Coinbase Wallet Has a New Feature: Send Crypto via Web Link
The exciting part is actually in the small print: This is because Coinbase covers the fees for transactions via stablecoin...
Biotech2 weeks ago
La Caixa Foundation Promotes Research in Biomedicine and Health with €25.3 Million
Cannabis6 days ago
INTI Developed a Key Standard for the Cannabis Industry
Cannabis2 weeks ago
Cannabis Legalization in Ukraine Delayed by Opposition Party
Fintech4 days ago
Fintech Companies Are Creating 26,000 Jobs in Colombia