Cross-border fintech is hot right now. According to the Bank of England, the cross-border payments market is expected to reach more than $250 trillion by 2027. And experts say this is where fintechs benefit banks (pun intended), especially in the business-to-business sector, where fintechs' favored emerging technologies of artificial intelligence, machine learning, and blockchain come into play. Pointed out.
It's no surprise, then, that one of the trends for Y Combinator's 30 or so fintech startups in the Winter 2024 batch is an easier way to move capital around the world. Here's a summary of what I saw at YC Demo Day this week.
Numo
Numo's verified profile is attached to each invoice you send. Image credit: Numo
What: Offshore banking for international contractors
Numo focuses on payroll systems and banking for remote and international contractors. Users can obtain a US bank account and access low-cost local payment rails. CEO Derrick Wolbert met co-founders Reuben Balik and Q Carlson when he worked at Hologram.com, a global mobile phone network. Wolbert said the company has “connected the best carriers in each market” to allow users to withdraw funds instantly in their local currency. The startup first tested this in Nigeria and already he has 1,000 users registered and his 330 contractors verified by Numo. Walbert called Numo “the financial infrastructure for a new generation of technology workers.”
Cleva
Image credit: Cleva
Business: US-based banking for Africa
Similar to Numo, Cleva offers US bank accounts that allow users to receive funds and convert them into local currency, even if they are non-residents. Co-founder Tolu Alabi previously built cross-border issuance and banking products at Stripe, and co-founder Philip Abel built multi-region infrastructure at companies like AWS and Twilio. Did. Alabi said one of the driving forces behind the startup was the fact that around 70% of Nigerians lost wealth last year due to currency devaluation. Thanks to Cleva, “Africans can receive dollars from anywhere in the world,” Alabi said. This market is huge, estimated at $18 billion. There is no greater proof than the market achieving profitability. Six months after its release, Cleva is exactly where it is now. He also earns a monthly income of $120,000.
xPay
Image credit: xPay
Feature: International payments API for businesses in India and Southeast Asia
xPay acts as an international reseller, allowing sellers to “start selling internationally right away, without the need for a U.S. bank account or legal entity,” CEO Aniket Gupta said. The company touts that it can help companies sell to the US, Europe, the Middle East, and Southeast Asia in “one tenth of his time” with a single integration. xPay started four weeks ago and already has 25 contracts signed and over 200 people on the waiting list. Could this be a possibility for his future acquisition of Stripe? We'll have to wait and see. But for now, the company expects to process $5 million in annual transaction volume by the end of this month.
Quick
Image credit: Swift
What: Move funds instantly anywhere in the world
The company said it still takes several days to transfer funds from account to account, so two engineers, David Lalor and Rakib Hossain, will provide “an integrated API for instant, risk-free funding.” He launched Swift for this purpose. They are building instant international transfers between accounts to accelerate the flow of more than $150 trillion in funds that pass through bank rails each year. Swift's first product is an instant deposit API for brokerages and digital banks, which he already has running on Venmo, Zelle, and FedNow.
Infinity
Image credit: Infinity
What we do: Cross-border banking for small and medium enterprises in India
I heard from so many childhood friends over the past two days, so it was refreshing to see two brothers starting a company. In fact, this is Sourav Choraria and his brother Sidharth Choraria's second startup together, after the health tech startup they sold. Sourav is a former head of growth at wealth management giant Paytm Money, and Sidharth is a former project manager at Amazon, where he helped launch the Appstore's in-app purchase SDK.
The duo is currently building in the fintech space with Infinity. The company has built a financial management platform and is currently adding multi-currency accounts and global payments. Indian companies conduct $700 billion in cross-border transactions annually, and Infinity earns 1% from those transactions. This $7 billion prospect for him turns into a huge opportunity. According to Sourav, Infinity has gained his 110 customers in three months and is growing 20% week over week.
“Our goal is to create a financial oasis for cross-border businesses,” Sourav said.