Traditional payment networks now support peer-to-peer transfers of stablecoins, thanks to Sling Money.
Sling Money Revolutionizes Cross-Border Payments with Stablecoin Technology
In a groundbreaking move, Sling Money, a fintech company that recently launched in the U.S., has announced the integration of stablecoins and virtual accounts to facilitate seamless and cost-effective cross-border transactions. This development, made possible by the acquisition of the regulated financial infrastructure provider Bridge by Stripe in February, is set to redefine the landscape of international payments.
Sling Money's innovative approach allows users to open Virtual USD or EUR accounts within seconds, bypassing traditional banking delays and high foreign exchange fees. This feature, available in more than 75 countries, enables users to receive funds "like a local" directly into their Sling Wallets in various countries across Africa, Europe, and beyond.
The use of stablecoins ensures price stability, reducing the volatility typical of cryptocurrencies, and ensuring predictable transaction values. This feature, combined with the offering of virtual USD and EUR accounts, significantly enhances the convenience and cost-efficiency of cross-border payments.
According to the Bank for International Settlements, stablecoins facilitated approximately $600 billion in cross-border transactions in Q2 2024. Sling Money's model suggests a disruptive approach to cross-border payments by combining stablecoins with virtual accounts, boosting speed, reducing costs, and enabling near-local banking experiences globally.
Users can route payments into either a U.S. account and routing number or a European IBAN on Sling Money. The company plans to expand into using RTP and FedNow as payment rails. Once the chosen stablecoin is transferred to the user's wallet, funds can be held within the app or converted into local currency for a small fee.
Joel Hugentobler, Cryptocurrency Analyst at Javelin Strategy & Research, has stated that Sling Money significantly reduces friction in cross-border payments. The company's use of Bridge's technology to convert incoming payments into stablecoins, either the Pax Dollar or the Euro Coin, is a testament to this claim.
The convergence of traditional and blockchain-based fintech, as indicated by the acquisition of Bridge by Stripe, is a significant development in the fintech industry. This move gives Sling Money greater credibility and scalability, positioning it as a leading player in the cross-border payments market.
In summary, Sling Money’s integration of stablecoins with US and European Virtual Accounts significantly enhances the convenience and cost-efficiency of cross-border payments, fostering more seamless global money movement. This development is set to revolutionize the way businesses and individuals make international transactions, offering a more accessible, affordable, and efficient alternative to traditional banking methods.
- The integration of stablecoin technology by fintech company Sling Money, as demonstrated in their recently launched service, might have a substantial impact on personal-finance management, making international transactions more cost-effective and efficient for both businesses and individuals.
- The burgeoning use of stablecoin technology in cross-border payments, such as the one implemented by Sling Money, can potentially disrupt the traditional finance sector due to its potential to offer faster, cheaper, and more accessible international transaction solutions.
