Instant payments provider Coinflow Labs has raised $2.25 million in seed funding.
The company said the funding round, announced on Tuesday (May 28), will help it strengthen its payments infrastructure solutions designed to reduce the time it takes for merchants to receive payments.
“Typically, merchants who accept card payments experience delays of several business days before settlement, putting a strain on their business,” Coinflow said in a news release. “Coinflow gives merchants the ability to receive money instantly. Coinflow offers a comprehensive payments stack that includes chargeback-free payment acceptance and instant settlement with stablecoins.”
Additionally, the company offers an instant funds disbursement product, which enables businesses to instantly disburse funds from stablecoins to users’ bank accounts via real-time payment rails such as Visa Direct, the RTP® Network via The Clearing House and Instant SEPA.
“At a time of unprecedented market volatility and uncertainty across the global financial system, a unique opportunity exists to bring efficiency, security and trust to the payments system, particularly in the evolving Web3 space,” said Daniel Lev, co-founder and CEO of the company.
“We developed Coinflow to bridge the gap between traditional finance and blockchain technology, combining the best of both worlds to create a value-added service for merchants that enables instant payments,” Lev added.
PYMNTS wrote about the growing use of stablecoins last month, noting that the digital currencies help businesses “access instant payments and liquidity without relying on intermediary banks or payment processors,” which can “optimize cash flow management and reduce reliance on traditional banking infrastructure.”
Additionally, all transactions made using stablecoins are recorded on the blockchain, providing irrefutable audits, allowing CFOs and treasurers to enjoy increased compliance, reduced fraud, and streamlined audits.
As we noted here in February, proponents of blockchain’s underlying technical capabilities are keen to disassociate the technology from its association with cryptocurrencies.
“As the digital economy continues to grow, adoption of stablecoins as a mainstream payment method appears to be growing right along with it,” PYMNTS wrote, citing Stripe’s recent announcement that it plans to begin supporting global stablecoin payments as early as this summer.
Also this spring, PayPal and international remittance service Xoom partnered to allow users to make international transactions using PayPal’s U.S. dollar stablecoin, which launched last year.
Also in April, blockchain and cryptocurrency company Ripple revealed its own plans to introduce a dollar-pegged stablecoin that would be 100% backed by U.S. dollar deposits, short-term U.S. Treasury securities and other cash equivalents.
