Toronto fintech startup Chimoney is partnering with the Interledger Foundation to power cross-border payments between more than 130 countries worldwide.
For many businesses and workers, cross-border payments are a lifeline. The global freelance economy, for instance, now includes more than 1.5 billion individuals, many of whom make their living through international work.
Together, Chimoney and the Interledger Foundation will enable consumers without bank accounts to send and receive money through bankless digital wallets, as well as instantly convert it into a traditional or emerging payment method of their choosing.
Using the Interledger Foundation’s Interledger Protocol (ILP)—an open, neutral protocol for transferring money—and its Rafiki software to power payments through Chimoney’s Payment Infrastructure, the companies will give businesses the ability to send international payments quickly to any phone number or email.
This enables businesses and individuals—including freelancers, remote workers and beneficiaries of cash-based transfers (CBT)—to bypass significant bank fees, exchange rates and other transaction charges that are traditionally required to send and receive money internationally.
The options for sending and receiving international payments, however, are still largely limited to traditional financial systems that require a formal bank account, and come with steep fees of up to 12% per transaction and extended wait times.
In markets with limited access to traditional banks, individuals without bank accounts face even more fees for converting funds into digital alternatives, such as Mobile Money and airtime, in order to exchange currency via their mobile phone number.
Consumers will additionally be able to send fee-less cross-border and local payments to other digital wallets in the Interledger network, as well as convert payments into their preferred currency from Chimoney’s digital wallet. This includes local options such as the USD, CAD and Africa’s M-PESA; and unconventional payment methods including gift cards, Mobile Money and airtime.
“At Chimoney, our mission has always been to break down financial barriers and enable universal access to financial services,” notes Uchi Uchibeke, Founder and CEO, Chimoney.
“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.”
Last year, Chimoney was selected by Google Canada for their 2023 Google for Startups Accelerator Canada program and participated in the Techstars progam.
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