The round was led by Peak XV Partners and included participation from digital asset giants Ripple and Circle, according to a Wednesday (Aug. 27) press release. The company plans to use the financing to help speed its “licensing roadmap” in key global markets, including the United States, Australia, Hong Kong and the United Arab Emirates.
“We’re entering the next chapter of our journey — one where modern payment technologies, regulatory compliance, and partnerships with global leaders will enable the future of cross-border commerce,” Tazapay co-founder and CEO Rahul Shinghal said in the release. “With this round, we are not just capitalizing the business; we are investing in our long-term vision to become the builder of a global payment collection and payout infrastructure built on modern rails. One of the key use cases this infrastructure serves is being the fiat bridge for stablecoins in emerging markets.”
The investments from Circle and Ripple, both key players in blockchain-based and stablecoin-powered payments infrastructure space, underline Tazapay’s role in “connecting traditional finance with the evolving world of digital currencies,” the release said. The company now has one of the broadest fiat collection networks in emerging markets.
“The future of global payments depends on the seamless convergence of traditional and digital finance,” Eric Jeck, senior vice president for corporate and business development at Ripple, said in the release. “Tazapay is a clear leader in building these essential, compliant last-mile connections, especially in emerging markets.”
Stablecoins are reshaping the cross-border payments space.
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“For much of the past decade, cryptocurrency and traditional finance operated in parallel,” PYMNTS wrote this month. “Stablecoins, blockchain-based tokens pegged to fiat currencies, emerged in the cryptocurrency market as tools for liquidity and arbitrage. At the same time, banks and payment networks continued investing in modernizing legacy rails, with limited overlap between the two spheres. That separation is now collapsing.”
Cross-border payments make up a sprawling and inefficient market, with the bulk of transactions consisting of B2B transactions, the report said. The inefficiencies in this system include settlement times that can stretch over multiple days, high fees, a lack of transparency and strong reliance on intermediaries. Stablecoins provide a technical alternative that can address these pain points. They offer instant transaction settlement, lower costs, programmable transfers and global accessibility.
