Conduit, a leading B2B cross-border payments platform, has recently made headlines with its strategic expansion into the Latin American market. Following a successful USD 5 million seed extension round, the company is set to revolutionize the way businesses conduct cross-border transactions in the region.
Despite the widespread use of banks, financial institutions, and legacy fintechs for cross-border payments, there remains a significant untapped market for businesses in emerging economies. Conduit aims to fill this gap by providing a seamless and efficient payment solution for businesses of all sizes.
Originally launched as an API to connect fintechs, neobanks, and legacy financial institutions with crypto-backed earning tools, Conduit has now pivoted to traditional banking. This shift in focus has allowed the company to expand its reach in Africa, where businesses face similar challenges to those in Latin America. A recent USD 6 million seed extension from Helios Digital Ventures has further fueled Conduit’s growth in these markets.
One of the key features that sets Conduit apart is its ability to facilitate direct payments to bank accounts via ACH or SWIFT, even without a US entity. This streamlined process has been a game-changer for businesses in Latin America, where the platform first introduced its payment services last August.
In addition to simplifying cross-border payments, Conduit aims to bridge the gap between traditional finance and decentralized finance (DeFi). With initial backing of USD 17 million in seed funding from investors like Portage Ventures, Diagram Ventures, and Gradient Ventures, the company is at the forefront of developing analytics tools for institutional investors in the DeFi space.
The challenges faced by businesses in Latin America, including limited access to USD, unreliable SWIFT connections, and other essential payment rails, have long hindered their ability to connect to the global financial system. Conduit’s platform addresses these pain points, allowing businesses in countries like Colombia, Brazil, and Mexico to overcome these obstacles and thrive in the international marketplace.
Moreover, the company’s commitment to facilitating stablecoin conversions into local currencies has been instrumental in helping businesses manage their operational costs effectively. By enabling businesses to off-ramp stablecoins into local currencies as needed, Conduit is empowering companies to navigate the complexities of international finance with ease.
To further enhance the money transfer process, Conduit has established partnerships with local banks in each country it operates. Leveraging its cutting-edge technology, the platform ensures faster payouts and seamless transactions for its customers. This approach not only expedites the transfer process but also allows businesses to send money in their local currency using familiar methods.
Looking ahead, Conduit has ambitious plans to extend its services to other regions, including Asia, with a focus on enabling faster cross-border B2B payments. The company’s roadmap also includes a strategic initiative to achieve profitability before the end of the year, signaling its commitment to sustainable growth and innovation in the global payments landscape.
In conclusion, Conduit’s expansion in Latin America marks a significant milestone in the company’s journey to revolutionize cross-border payments for businesses worldwide. With a steadfast focus on innovation, efficiency, and accessibility, Conduit is poised to reshape the future of international finance and empower businesses to thrive in an increasingly interconnected global economy.