RedotPay Partners with Circle to Slash Cross-Border Payment Costs by 50%

RedotPay, a Hong Kong-based crypto payment fintech, has announced a strategic partnership with Circle’s new payment network (CPN) to streamline cross-border transactions in Brazil. This collaboration allows RedotPay users to send cryptocurrency directly to Brazilian bank accounts, with the funds automatically converted into Brazilian Real (BRL) upon arrival. This initiative aims to address the long-standing issues of slow and costly cross-border payments, particularly in emerging markets.

The CPN, introduced by Circle in April, is designed to capture a significant portion of the cross-border payments and remittances market. By leveraging stablecoins, the network aims to provide a more efficient and cost-effective solution for international transactions. RedotPay, which recently secured a $40 million funding round, is committed to making global payments more accessible for underbanked populations. The company seeks to reduce transaction costs and eliminate the traditional one to five business day settlement period associated with international transfers.

According to Michael Gao, CEO & Co-Founder of RedotPay, the partnership addresses two major pain points in cross-border payments. For users, the process has been slow and costly, with high foreign exchange rates and handling fees. Additionally, transaction success rates have been inconsistent. For Payment Service Providers (PSPs), capital has often been trapped in prefunded accounts with different PSPs or banks across multiple countries. This collaboration with Circle’s CPN is expected to mitigate these issues, providing a more seamless and reliable payment experience for both users and service providers.