Mexican Technology Companies Will Connect SMEs With The US And LatAm

• Cryptocurrency platform Bitso and fintech companies Tribal and Stellar Development announced this continental alliance.
• The objective is to facilitate payments in pesos and other currencies from small companies in Mexico and Latin America to suppliers in the United States.

The alliance announced by the Mexican technology companies Bitso and Tribal and the American non-profit foundation Stellar Development, will allow the expansion of the financial services offer to a much broader portfolio of business clients and users not only in Mexico but also in the rest of Latin America.

Bitso is one of the largest cryptocurrency platforms in the country, while Tribal offers solutions for business payments. Both firms made this alliance that will facilitate payments by small Mexican companies to international suppliers in the United States and other countries on the continent.

"This service will allow SMEs in Mexico to make their payments in pesos to suppliers in the United States, making them receive them in dollars," 

Tribal said this week as reported by Expansión.com.

On The Flipside

• The objective of this alliance is to support some 52 million SMEs that operate in Latin America and need to make payments to companies in the US, the company explained.

The business involves a potential market of around 175,000 million dollars in the entire region. However, most of the business will be concentrated in Mexico as it is the country that has the most opportunities due to its proximity to the U.S. and the existing free trade agreement with that country.

Cross-border payments made through Tribal will use the services of the open source Stellar network. This is a decentralized sustainable network that serves to “store and move money” for various financial products and services. It allows transactions between different currencies and the issuance of cryptocurrencies.

Tribal plans to offer support to SMEs in the rest of Latin America through the use of artificial intelligence. The company reported that small firms in the region will have support in terms of their operating expenses and financial management through corporate multi-currency Visa cards.

Business cards offer lines of credit, spending controls and a payroll service for employees and contractors, Tribal explained. The company has agreements with various banks, financial services and payment platforms, including HSBC, Nubank, Visa, American Express, Experian, Marqeta, Mercadolibre and Didi Pay, among others, throughout the continent.

"Bitso and Tribal share a common mission of providing top-notch financial services for SMEs in Latin America," 

Bitso’s product manager Carlos Cota said in a statement.

"Our participation in providing avenues for the movement of funds from Mexican companies to Americans reflects our belief in the potential of cryptocurrency to revolutionize payment transactions in a global digital economy," 

he added.

Why You Should Care?

• Bitso recently launched its new Bitso Shift wallet, a solution that allows you to send, receive and convert any currency into foreign currency for cross-border payments.
• The tool is ideal for SMEs that export to any country in the region. But also for people who are working in the United States.