The agreement connects Inswitch with Binance Pay, a borderless payments technology developed by Binance, and is expected to allow merchants in Latin America to receive payments with more than 50 cryptocurrencies, per the announcement. The crux of the partnership involves making Binance Pay more widely available while also helping to more efficiently manage recurring customers using Inswitch’s application programming interface.
“We are very excited and committed to democratize the payment industry, connecting more than 650 million in Latam with e-commerces around the world. Now merchants will have more options on how to get paid and let their customers choose how to pay wherever they are,” said Ronald Alvarenga, CEO of Inswitch.
According to Silicon Valley Bank, Latin America continues to be ripe for growth opportunities in the fintech sector, and the continent has enjoyed rapid expansion in recent months. Last year, the region saw a nearly fourfold jump in investment in the space climbing from just over $4 billion to $15.7 billion in 2021. “With its deep historical roots in the financial services and banking industry, Latin America serves as a perfect breeding ground for fintech startups,” according to the bank.
Overall, the continent continues to struggle with a large underbanked population that has made it an attractive target for fintech startups and other nascent financial services providers.
“Latin American banks typically only served affluent individuals due to lack of competition and historically stringent credit requirements. Therefore, a large portion of the overall population is still underbanked, ranging from 30% to 50% across major countries,” according to Silicon Valley Bank.
"Did you know? Approximately 15,174 businesses worldwide accept #Crypto, with around 2,300 of those businesses operating in the United states. Some of the companies that accept #BTC & #ETH as payment methods are overstock, shopify, and even Sotheby. #cryptocurrency #payments"
The scope of the wide-reaching agreement between Binance and Inswitch will feature a broad array of business types including business-to-consumer, business-to-business and consumer-to-business, according to the announcement. Sectors likely to see the bulk of this activity include retail, travel, e-commerce and banking, among others.
“We are thrilled to bring crypto payments to more than 650 million LATAM users by partnering with Inswitch, this keeps reinforcing Binance Pay’s objective of providing contactless, borderless, and secure cryptocurrency payment experiences to companies and consumers,” adds Jonathan Lim, Global Head of Binance Pay.
"Cryptocurrency debit and credit card offerings in Latam are thriving, as two exchanges in the area are planning to launch their crypto-enabled cards. https://tokenandcrypto.com/ the-card-battle-heats-up-in-latam-as-ripio-and-bitso-both-announce-crypto-enabled-cards/"