The Fintech Industry Sees Potential in International Transfers

International transactions are one of the segments targeted by fintech companies, especially those focused on the segment of remote or freelance workers (freelancers), who specialize in remote work in companies whose headquarters are located in another country, from technologies such as cryptocurrencies, projects for global transfers have been developed.

A few weeks ago, Mexican fintech company Bitso announced an alliance with Via, a global payroll platform that helps to hire and pay workers anywhere in the world in compliance with local regulations. The case extends to another payment platform, Higlobe, a firm that received $14 million in its first round of financing and aims to serve the freelance segment in Mexico.

In an interview, Teymour H. Farman, CEO of Higlobe, commented that the market of professionals seeking financial services for international payments is growing 35% annually and said that it has skyrocketed in the last three years, apart from the remittance segment.

“There were already people who were sending money using cryptocurrencies, the problem is that they do it through bitcoin and cryptocurrencies, they are very volatile, the price goes up or down and that causes a lot of instability, instead we observed that the so-called stablecoins found their price linked to the dollar and that is why they are more effective for transactions,” Farman commented.

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The Payoneer platform, for cross-border payments, has seen an increase in payment services for professionals internationally

Currently, there are around $140 Billion in circulation through stablecoins, which during September reached a transaction volume of $765 billion, according to data from The Block, an information services firm dedicated to digital assets.

On the other hand, the Payoneer platform, for cross-border payments, has seen an increase in payment services for professionals internationally, María del Mar Fernández, vice president of Payoneer Latin America, pointed out that the technology sector is the one that most frequently requires international payment platforms.

“Most of the consultants of these digital companies are selling services outside Latin America, so it is very complex to receive payments when they have no local presence in a market, until not long ago to receive payments efficiently, quickly, at low cost, you had to have a local entity, a freelancer can not open local entities to charge anywhere in the world,” explained del Mar.

Regarding payments through technology that can be made through stablecoins, Farman pointed out that platforms based on blockchain solutions, deal with speculation that revolves around virtual assets, so it is necessary to strengthen and work on the regulatory part, from the platforms and authorities.

“There is a lot of speculation with cryptocurrencies, a lot of money is lost, it is very important to engage in conversation with regulators, because the use goes beyond, such as providing a non-speculative service,” Farman commented.

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First published in EL ECONOMISTA, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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