Migrants are sending money home at unprecedented rates, despite the high costs of traditional remittances. Island Pay, a Bahamas-based fintech company, is advancing financial inclusion with its digital wallet, CiNKO, in Latin America and the Caribbean. The wallet uses Circle’s USDC stablecoin, enabling prepaid card funding and peer-to-peer payments, even without a bank account.
The pursuit of crypto-powered remittances is growing, with various crypto wallets and payment systems emerging. Circle collaborates with MoneyGram and Stellar, while Mexico-based Bitso partners with Stellar for USDC transactions. Western Union also launches digital payment platforms to counter crypto competition.
CiNKO is part of Circle’s initiative to introduce stablecoins and decentralized finance in Latin America, potentially reducing remittance costs by 80%. Despite the challenges, remittances in the region have surged, reaching $145 billion in 2021. Island Pay’s Douglas highlights USDC’s stability, pegged to the US dollar, and its growing merchant ecosystem, enhancing its usability.
The CiNKO wallet aims to onboard 100,000 users in Central and South America, fostering financial inclusion and convenience. Island Pay’s flexibility allows for expansion beyond Latin America, as crypto-powered remittances promise transformative impacts on financial accessibility for millions globally.
Image Credit: Shutterstock
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
