Colombian digital payments startup Interstellar has reportedly received investment in a Series A funding round from Stellar Development Foundation and MoneyGram.
The amount of the investment was not disclosed, Contxto reported Thursday (Dec. 28).
Neither Stellar Development Foundation nor MoneyGram immediately replied to PYMNTS’ request for comment.
“We are excited to partner with Stellar Development Foundation and MoneyGram to accelerate the adoption of digital payments in Latin America and the Caribbean,” Interstellar CEO Andrés Villaquirán said in the report. “This investment will allow us to expand our presence in the region and offer digital payment solutions to more people.”
Interstellar uses blockchain technology to facilitate international money transactions, according to the report.
With the new funding, the firm plans to expand its presence in Latin America and the Caribbean, the report said.
For Stellar Development Foundation and MoneyGram, this investment is part of their efforts to promote the adoption of blockchain technology in the payments industry and to expand their presence in the region, per the report.
“The investment in Interstellar demonstrates our commitment to innovation and our belief in the potential of blockchain technology,” Stellar Development Foundation CEO Denelle Dixon said in the report.
Alex Holmes, CEO of MoneyGram, added: “We believe this investment will enable us to accelerate the adoption of blockchain technology in the payments industry and improve the efficiency and security of money transactions.”
PYMNTS Intelligence found in 2021 that 23% of respondents who made online payments to friends or family in other countries used at least one kind of cryptocurrency.
In fact, 13% of consumers surveyed said cryptocurrencies were their most used payment method for online cross-border remittances, according to “The Digital Currency Shift: The Cross-Border Remittances Report,” a PYMNTS and Stellar Development Foundation collaboration.
Among the advantages of using blockchain in the service of payments (and with networks like Stellar) are the ease of asset issuance and connection into the existing financial system, Jason Chlipala, chief operating officer at Stellar Development Foundation, told PYMNTS in an interview posted in September 2021.
Transactions can be done at scale, and cheaply, Chlipala said at the time.
