The Interledger Foundation and Chimoney, a fintech company that offers multi-currency wallets and cross-border payment infrastructure, have partnered to enable cross-border payments in over 130 countries worldwide.
The partnership will enable consumers without bank accounts to send and receive money via digital wallets, allowing them to instantly convert funds into traditional or emerging payment methods. This will benefit businesses and individuals, including freelancers, remote workers, and cash-based transfer beneficiaries, by bypassing high bank fees, exchange rates, and other transaction charges.
Cross-border payments are critical for many businesses and employees. The global freelance economy, which comprises more than 1.5 billion people, is primarily reliant on overseas work. However, the present choices for sending and receiving foreign payments are mostly limited to traditional financial systems, which frequently require a formal bank account and can incur costs of up to 12% per transaction, as well as long processing periods. Individuals without bank accounts in places with restricted access to traditional banking must pay additional fees to convert monies into digital alternatives such as mobile money or airtime.
Through the partnership, businesses will be able to send money internationally quickly, cheaply, and without charging end users thanks to the Interledger Protocol (ILP), Rafiki software, and Chimoney’s Payment Infrastructure. Furthermore, consumers will be able to make fee-free cross-border and local payments to other digital wallets on the Interledger network, as well as convert payments into their preferred currency using Chimoney’s digital wallet. This covers local currencies like USD and CAD, as well as services like Africa’s M-PESA, gift cards, Mobile Money, and airtime.
Uchi Uchibeke, Founder and CEO of Chimoney, emphasizes the significance of this partnership, “At Chimoney, our mission has always been to break down financial barriers and enable universal access to financial services. Our partnership with the Interledger Foundation is a monumental step in this journey. These advancements will democratize access to financial services, just as the internet democratized access to information.”
Addressing the complexities of international regulations, Chimoney’s ready-to-implement API enables companies to integrate cross-border payments into their services swiftly, with built-in compliance and regulation features.
“Chimoney’s bankless cross-border payments model is evidence of how the entire financial industry can leverage open technology to create new offerings for those who haven’t had them before now,” said Briana Marbury, President and CEO, The Interledger Foundation. “Our work together puts us one step closer to a sustainable, interconnected global payments network.”
