As 2020 came to a close, we reflected on the extraordinary year that will shape decades to come. For DTransfer, this meant optimizing the positioning of our payment platforms to deliver even more value for our users. We would like to share some of our most significant milestones that begin to provide a clear trajectory for the future of payments.
Paving the road for global payments
2020 proved to be one of the most unprecedented years of this century. Nonetheless, DTransfer leaves the year with several exciting achievements, many of which encompass the challenges and opportunities initiated by the pandemic As the digital economy experienced considerable growth, the demand for agile global payment options has increased, triggering considerable appeal for FinTech solutions and innovative payment technology. As McKinsey & Company explains in its 2020 Global Payments Report, “Overall, the crisis is compressing a half-decade’s worth of change into less than one year.”
The traditional banking industry is being forced to restructure, paving the way for digitized payment solutions that overcome many of the pain points found in this outdated infrastructure. Although the crisis has given rise to several unforeseen hurdles, it has necessitated our vision of creating an inclusive financial system that overcomes borders and fosters economic inclusion.
DTransfer - the new beginning in cross-border payment solutions
In a globalized world, businesses increasingly have the need to send money internationally. However, the traditional banking infrastructure demonstrates consequential latency for accommodating this trend. Due to a fragmented system, international transfers usually take days and bear high fees costing businesses both time and money. Decentralized, digital, and direct, DTransfer paves the way for a modernized global payment system by utilizing blockchain technology and the Stellar network to connect instant banking networks and enabling instant cross-border payments for businesses. Our solution encompasses a new standard for moving money with a transfer process that is instant, transparent and cost-efficient.
We have successfully connected our instant payment platform to banking networks in Europe, US, Mexico, Nigeria and Tanzania and are in the process of connecting to more local bank networks in Africa and the Latin America.
DTransfer initiates first instant payments between Europe and Africa with UHURU microfinance
After the official launch of DTransfer in September, we were able to begin instant payments between Europe and Africa. Uhuru Microfinance was our first client to utilize DTransfer and move to a country that is continuing to see strong economic growth. Uhuru aims to build a more inclusive financial system in Africa by connecting international investors with local microfinance providers. The company experienced long transactions times and high fees for their international transfers to Tanzania, accelerating operating costs and forcing the company to find a solution for an arduous corridor. DTransfer was able to deliver lower fees and increased transparency for Uhuru, with transfers being credited in Tanzania after just a few minutes. The promising results yield an encouraging outlook for the region, especially in underserved transactional corridors.
DTransfer parent company SatoshiPay receives $550k investment from Stellar Development Foundation
In late May, we announced an investment from our longstanding San Francisco-based partner the Stellar Development Foundation (SDF). SDF’s Enterprise Fund provided a strategic $550k investment to support Satoshipay’s vision and develop SatoshiPay's payment products further. Since 2017, the Stellar network has been imperative for DTransfer’s development. The ecosystem’s focus on ensuring financial freedom through its robust decentralized ledger technology not only aligns with our vision of an inclusive economic system but lays the technical groundwork for executing this goal. Although the investment adds significant value to our instant cross-border payment platform, the pioneering community formed by SDFs innovative ventures brings a collaborative approach to revolutionizing the payment industry.
DTransfer to pilot Bankhaus von der Heydt’s new euro-based stablecoin
In the latter part of 2020, DTransfer’s parent company SatoshiPay established an agreement with the German Bankhaus von Der Heydt to pilot the bank’s fully compliant euro-backed stablecoin (EURB). Since 2019, stablecoins have grown tenfold which has made it one of the most exciting developments in blockchain. The partnership presents an encouraging forecast for the global payments landscape: the opportunity for banks to utilize new technology and adapt to the shifting financial environment propelled by decentralized technology.
The EURB is the first fiat asset directly backed by a banking institution on Stellar. The trust generated by the underlying e-money license and established compliance necessities implemented into the EURB paves the way for swift adoption of blockchain-powered transactions. DTransfer is in the process of integrating EURB into its cross-border money transfer service which will establish a reliable on and off-ramp for EUR with instant bank transfers within the SEPA network. DTransfer then institutes stable and secure access to EUR on the Stellar network, enabling transfers in and out of the European region to be instant.
The payment evolution continues
The global health crisis caused by COVID-19 affected people in almost all corners of the world, altering daily life so significantly that a new normal emerged. The impact on the global economy remains widely obscure as many countries continue to grapple with trying to navigate extended restrictions and updated regulatory measures. For the payments industry, the pandemic’s impression also remains opaque, but the shifts it has catalyzed leaves room for hope, especially in FinTech.
DTransfer leaves 2020 behind with milestones that begin to paint a clearer picture of our road ahead. DTransfer is quickly becoming the pillar in our vision to make global payments more fluid, reliable and accessible. Although the crisis leaves many people and industries shaken, the call for innovation is conspicuous. We aim to take foothold in the power of change during times of uncertainty to create a payment infrastructure that creates opportunities for a more unified world.
Stay updated on our progress and developments in 2021 by following our Twitter and LinkedIn. We want to thank our partners and surrounding payment community for the support throughout the year including: SDF, Finclusive, Cowrie, BvdH, ClickPesa and Tempo. We look forward to the challenges ahead and the exciting advancements being made in the global payment landscape.