Enterprise payment platform Tribal Credit has teamed up with the renowned crypto exchange Bitso and the Stellar Development Foundation to provide a cross-border business-to-business (B2B) payment alternative to businesses. As a result of this collaboration, the region will foresee more use cases for blockchain technology, possibly on a much larger scale.
The company aims to offer better payment options to startups and to grow SMEs for paying their business expenses and managing their finances in a better way.
The new partnership will help firms in Mexico to pay for goods and services in their native currency- the Peso along with their business partners in the United States, also receiving payments in dollars (USD).
Now the role of Stellar in this system would be to offer its blockchain for a decentralized open-source transaction network specializing in multi-currency payments.
Tribal Credit chooses its partners wisely
The multi-billion-dollar crypto exchange Bitso on the other hand would be facilitating Tribal Credit’s cross-border payment system by offering merchants to be capable of exchanging peso funds to Stellar’s USDC stablecoin. Interestingly, Bitso was also the primary partner in the state-issued Bitcoin wallet Chivo of El Salvador, which is used by every one out of three citizens in the country.
Before this, Qatar National Bank had partnered with Ripple to facilitate cross-border payments.
In a written statement, Ehab Zaghloul, the principal research scientist of Tribal Credit, said that while Bitso fits with Tribal’s objective to “promote financial inclusion and democratize access to financial services,” Stellar also enables extremely fast transfers at a near-zero fee.
Given the lack of standard finance institutions in the region, cryptocurrencies provide an alternative financial service for Latin American residents, especially given the fact that anyone with as little as a smartphone can pay in crypto.
These kinds of institutional jumps in the form of partnerships open doors to better adoption of cryptocurrencies.
