Former Western Union Executive Raises US$12.5m for Blockchain-Based Cross-Border Payment Solution
Simplifying cross-border payments for businesses can not be achieved through traditional financial infrastructure; that much is clear by now. In countries where there are limited to no financial services available, there is no adequate infrastructure to speak of. Blockchain technology can help resolve that problem, and Align Commerce is banking big on this innovative form of remittance.
Align Commerce Raises US$12.5m In Funding
It was only a matter of time until multiple businesses started to recognize the potential offered by blockchain technology.With the financial sector prone to disruption and innovation in its current state, changing the way society makes payments and transfers wealth can finally commence. After raising US$12.5m in financing, Align Commerce is aiming to unify blockchain technology with small and medium-sized businesses.
In a rather surprising turn of events, information revealed how Align Commerce is founded by a former Western Union executive. Transferring money between small and medium-sized businesses will be done through blockchain technology, as well as offering Bitcoin as an alternative currency. This new level of peer-to-peer money transfers has attracted a lot of interest from investors all over the world.
Align Commerce has already completed a private beta, which saw various businesses participate in the process. The number of companies, or their names, has not been made available to us at this point. But one thing is for sure: currency conversions between businesses will be a thing of the past from now on.
Invoices created through the Align Commerce platform are picked up by the system automatically. The payor will then be notified of the payment, which is picked up by a representative of the company. Recipients can choose to receive any local currency they want, without any of the associated costs that would be involved when using the traditional financial system.
Among the investors were companies such as Pantera Capital, Digital Currency Group, Kleiner Perkins Caufield & Byers, and FS Venture Capital LLC. No official details have been revealed as to how this additional funds will be used, but it seems safe to assume scalability of the system will need to be addressed at some point.
Blockchain technology offers a faster, cheaper, and more secure alternative for transferring money around the world. Wire transfers, or even remittance solutions like Western Union, charge high fees in exchange for their service. Align Commerce removes all of these factors from the equation and offers a new level of cross-border payment technology.
What are your thoughts on Align Commerce? Are they on the right track, and if so, what will their impact be in the financial sector? Let us know in the comments below!
Images courtesy of Shutterstock, Align Commerce