Bahamian payment company Island Pay turns to crypto amid high transfer costs

While Latin Americans face high money transfer costs and other challenges of traditional banking, Island Pay has stepped up to solve these issues. Bloomberg reported that the Bahamas payment company became the latest to offer cryptocurrency for remittance transactions.

Using crypto to navigate high costs

Island Pay will launch crypto wallets that use stablecoin USDC as its medium of exchange for users in the Caribbean and LATAM. The payment firm will offer the CiNKO wallet in over 30 countries, allowing individuals to complete businesses with vendors, send payments to others (even those without bank accounts), and fund pre-paid cards.

Crypto adoption in Latin America and the Caribbean continues to grow as Island Pay rolls out digital wallet that will use the USD Coin (USDC) stablecoin as its main currency.

— TheCryptoBasic (@thecryptobasic) July 25, 2023

Advancing financial inclusion with crypto

Island Pay’s move to include crypto for remittance shows the firm’s dedication to advancing financial inclusion and enhancing monetary experiences for banked and unbacked individuals in the region.

Bloomberg revealed that the CiNKO wallets represent a portion of a massive initiative to launch decentralized finance (DeFi) protocols and stablecoins in LATAM. The technology will substantially reduce the charges of sending cash abroad.

While receiving USDC stablecoins on CiNKO is free, users can incur gas fees contingent on the blockchain network they executed the transfer. Nonetheless, the Bahamas isn’t new to fintech businesses. The region has multiple global payment platforms and crypto wallets.

LATAM’s shifting remittance landscape

Rifos revealed that the remittance & payments sectors are the fastest-expanding fintech segments in LATAM. It added that smartphone adoption and connectivity have supported the innovation.

The report estimates that Blockchain’s potential to magnify savings for financial firms completing cross-border transactions will hit $10 billion market cap by 2030.

Further, rifos indicated that cryptocurrency remittance charges are 98% cheaper than traditional banks, making them an appealing option to low-income earners with high migration rates.