Banco Industrial Integrates SukuPay Blockchain for Instant Remittances

Guatemala's largest bank, Banco Industrial, has made a significant stride in the realm of financial technology by integrating SukuPay's blockchain infrastructure into its mobile banking app, Zigi. This move allows Guatemalan users to receive remittances from the United States almost instantaneously, with transactions completing in under 20 seconds. The service is priced at a flat fee of $0.99, making it an affordable option for users.

The integration is designed to be user-friendly, requiring only a phone number to initiate payments. This eliminates the need for International Bank Account Numbers (IBANs), crypto wallets, or conversions, streamlining the remittance process. Users can initiate payments using a debit card, Apple Pay, or cash through retail partners such as Walmart and CVS, further simplifying the transaction process.

Yonathan Lapchik, CEO of SukuPay, highlighted the transformative nature of this integration, stating that it is not just a feature but a financial infrastructure upgrade. He emphasized that SukuPay's technology powers real-world payments that are accessible to both banked and unbanked individuals, making financial services more inclusive.

Remittances play a crucial role in Latin America, with Guatemala alone receiving over $21 billion annually. Traditional remittance systems are often plagued by high costs and delays, which can hinder their effectiveness. SukuPay addresses these inefficiencies by embedding stablecoin-based transfers directly into a regulated banking environment, making the process seamless for users while leveraging the benefits of blockchain technology.

Banco Industrial chose to integrate SukuPay's infrastructure rather than build its own cross-border remittance system. Michel Caputi, Head of Strategic Alliances at Banco Industrial, noted that by embedding SukuPay's technology into Zigi, the bank is not only improving remittance services but also setting a new standard for the industry. This partnership serves as a model for other banks in the region looking to modernize their services without the need to build from scratch or force customers to engage directly with crypto technology.

Banco Industrial, established in 1968, has a strong presence in Guatemala with over 1,600 service locations and operations in Honduras, Panama, and El Salvador. The bank is a key player in the local remittance market, and this integration marks one of the first instances of a crypto-native protocol being used within a major Latin American retail bank. This move is expected to enhance the bank's remittance services and pave the way for broader adoption of blockchain technology in the region.

Lapchik emphasized that crypto technology, when used correctly, can move money instantly and at a fraction of the cost, making it a viable solution for remittances. He noted that while stablecoins facilitate cross-border transactions, people do not necessarily seek them out. Instead, they are the best way to achieve efficient and cost-effective remittances. This integration by Banco Industrial is a significant step towards redefining the future of fintech and banking in Latin America, demonstrating how blockchain technology can be seamlessly integrated into existing financial systems to benefit users.