Flutterwave Taps Polygon to Modernize Cross-Border Payments

Flutterwave, a major fintech company in Africa, will start using the Polygon blockchain to make cross-border payments faster, clearer, and cheaper. According to the announcement, this partnership aims to replace traditional banks with blockchain technology to enable quick and low-cost global transactions.

Flutterwave Driving New Payment Frontier

By using the Polygon blockchain, Flutterwave can process international payments in real time, reducing the delays that come with older financial systems. With the help of stablecoins and decentralized technology, Flutterwave will also offer faster payment options to businesses and consumers worldwide.

Notably, the pilot phase of this project will start later this year. It will focus on large multinational corporations that handle significant cross-border transactions. Once this phase is completed, Flutterwave plans to expand the service to consumer remittances by 2026. Flutterwave affirms that this partnership is among the largest real-world uses of stablecoins in emerging markets.

The company believes that stablecoins can offer real benefits to customers, especially those living in high-inflation countries. As such, this approach will resolve major issues in Africa’s cross-border payments, like high fees, long wait times, and limited banking options.

Western Union to Pilot Stablecoin-Based Settlement System

Similarly, Western Union recently announced a new pilot program that will use stablecoin-based settlement systems to modernize its global remittance operations. The move will make money transfers faster, cheaper, and more transparent for its customers worldwide.

The initiative also focuses on leveraging on-chain settlement rails to reduce reliance on outdated correspondent banking systems. 

Furthermore, the financial services giant hopes to improve efficiency and address long-standing challenges in the traditional remittance system. This announcement came a few months after Western Union first hinted at plans to incorporate stablecoins into its operations.

There is no doubt that Western Union believes that stablecoins can offer real benefits to customers, especially those living in high-inflation countries. 

Global Competition in Cross-Border Payments Increases

Other major players in the payments industry are also exploring similar solutions. Early Warning Services, the parent company of Zelle, recently announced plans to integrate stablecoins for cross-border payments.

Fintech companies like PayPal, Revolut, MoneyGram, and Visa already offer cross-border payment options that attract younger, tech-savvy users. Visa’s move comes after Swift announced a partnership with Consensys and over 30 financial institutions. The partnership will enable Swift to build a blockchain-based settlement platform designed for 24/7 real-time payments.

Likewise, Uber has started exploring the use of stablecoins to reduce the cost and complexity of international payments. The ridesharing giant is in the “study phase” of evaluating stablecoins as part of its broader fintech strategy.

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