The company says its Series A round, announced Wednesday (Oct. 8), will help boost adoption of what it calls the world’s first unified global pay-in and payout infrastructure with instant settlement using stablecoins.
“Payment systems are still stuck in a patchwork of local networks, riddled with delays, fraud, and unnecessary costs,” Daniel Lev, co-founder and CEO of Coinflow, said in a news release. “Coinflow solves this by unifying global rails into one instant, secure settlement layer.”
The release notes that since its seed round last year, Coinflow has enjoyed 23-fold growth rate, reached a multi-billion-dollar yearly transaction volume run rate, and extended its payment coverage to more than 170 countries. The company works with merchants in industries that include marketplaces, FinTechs, gaming, payroll, eCommerce and remittances.
Ryan Barney, whose Pantera Capital led the funding round, praised Coinflow’s ability to offer instant global payments and payouts without the worries about fraud or chargebacks.
“With the market for cross-border payments projected to exceed $320 trillion by 2032, the opportunity is massive,” he added.
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PYMNTS wrote last week about the benefits of stablecoins in making cross-border payments, noting the cumbersome nature of traditional cross-border payments.
“A payment may travel through multiple correspondent banks, each charging fees, performing compliance holds and holding prefunded balances in various jurisdictions,” that report said. “This leads to multiday settlement, foreign exchange slippage, float costs, limited transparency and reconciliation burden.”
Stablecoins on blockchain rails seek to alleviate these frictions directly, PYMNTS continued, as stablecoins are typically pegged to fiat currencies, lessening volatility.
In a separate report last week, PYMNTS spoke with Ed Dean, vice president of product at Nuvei, about the challenges merchants face in cross-border settlements.
“Batch-based systems are legacy, and at the end of the day, it’s slowing down funds,” Dean said. “Usually you don’t see the systems funding over weekends. That limits merchants’ access to their funds to a five-day window. In general, this reduces their working capital.”
Dean emphasized that the challenge is universal. “The pain of access to funds is pain for any merchant, large or small,” he said, with bigger companies needing rapid access to invest and manage operations across multiple jurisdictions.
“Small merchants … are really looking for a more localized impact of getting to their funds to pay invoices [and] payroll,” he added.
