Hong Kong-based RedotPay, a crypto payment fintech serving over four million users, has partnered with stablecoin issuer Circle’s new payment network (CPN), to take the headache out of Brazil’s cross-border transactions.
The CPN collaboration means RedotPay users can now send cryptocurrency directly to Brazilian bank accounts, with funds automatically converted into Brazilian Real (BRL) upon arrival, the companies said on Monday.
Stablecoins for payments are growing rapidly, with various estimates about the potential market size for blockchain rails and dollar-pegged tokens. Circle, issuer of the second-largest stablecoin, USDC, introduced the CPN in April, to capture some of the cross-border payments and remittances space.
RedotPay, which recently raised a $40 million funding round, says it’s on a mission to make global payments more accessible for underbanked populations by reducing transaction costs, as well as eliminating the traditional one to five business day settlement period typically associated with international transfers.
RedotPay is addressing two major pain points that have historically hindered cross-border payments in emerging markets, according to Michael Gao, CEO & Co-Founder of RedotPay.
“For users, the process has been slow and costly with high foreign exchange rates and handling fees,” Gao said in a statement. “Transaction success rates have also been inconsistent. For Payment Service Providers (PSPs), capital has often been trapped in prefunded accounts with different PSPs or banks across multiple countries.”